Dell jumps after landing a $9.7 billion Pentagon contract
Dell is surging after the company won a five-year $9.7 billion software agreement with the US Department of Defense to consolidate and manage Microsoft software licenses across the American military ecosystem.
It’s a big win for the company ahead of its earnings release after the close on Thursday.
This massive award has also drawn attention to Dell’s relationship with President Donald Trump and his administration. On Giving Tuesday in December, Michael Dell and his wife, Susan, appeared alongside Trump at the White House and announced a $6.25 billion charitable commitment to fund investment accounts for older kids who would not be eligible to receive money through the One Big Beautiful Bill Act.
Trump has also publicly championed the IT firm on multiple occasions. At a Mother’s Day event at the White House earlier this month, Trump publicly endorsed Dell, saying, “Go out and buy a Dell. They’re great.” Filings showed the president’s trust owned Dell shares during Q1.
Dell’s stock has skyrocketed over 145% year to date.
Per CNBC, Department of Defense Chief Information Officer Kirsten Davies said at a Pentagon press briefing that Dell Federal Systems beat out multiple competitors for this agreement, with the Pentagon expecting this arrangement to provide $422 million in annual savings.
