NEW YORK, Feb 1, 2026, 11:42 ET — The market has closed.
- Oracle shares dropped 2.6% on Friday, ending the day at $164.58, and slipped another 0.3% after hours.
- Oracle America secured an $88.1 million Cloud One task order from the U.S. Air Force, set to run through late 2028, according to a contract notice.
- Attention shifts to Big Tech earnings and the U.S. jobs report due Feb. 6 as traders await Monday’s market open.
Oracle shares fell 2.6% on Friday, ending the day at $164.58 despite a U.S. government update revealing new Air Force contracts for its cloud division. In after-hours trading, the stock slipped slightly to $164.03. (Source: https://stockanalysis.com/stocks/orcl/)
The Air Force handed Oracle America Inc. an $88,112,197 task order tied to the Cloud One program, according to the notice. The contract is a “firm-fixed-price” deal, meaning Oracle must absorb any cost overruns. (Source: https://www.war.gov/News/Contracts/Contrac…)
The contract marks another step in Oracle’s push into cloud infrastructure, yet the stock remains under pressure. Shares have dropped around 7% in the past five sessions and trade about 52% below their 52-week peak—highlighting just how fast sentiment turned since last year’s rally.
The broader market dragged on Friday, with the Nasdaq dropping 0.9% and the S&P 500 slipping 0.4%. Investors grappled with the rate outlook and new policy uncertainty. (Source: https://apnews.com/article/how-major-us-st…)
The partial U.S. government shutdown that started Saturday is now part of the unfolding story. House Speaker Mike Johnson said Sunday he’s confident lawmakers will resolve the standoff by Tuesday. (Source: https://www.reuters.com/world/us/house-spe…)
Cloud One is a multi-cloud initiative, with Oracle competing for federal workloads against larger players. The program features key platforms like Amazon Web Services, Microsoft Azure, and Google Cloud, highlighting pricing and capacity as critical factors. (Source: https://washingtontechnology.com/contracts…)
Oracle’s latest earnings reveal why its capacity matters. “Remaining Performance Obligations (RPO) jumped $68 billion in Q2, reaching $523 billion,” said Oracle Principal Financial Officer Doug Kehring, referring to RPO as contracted work yet to be recognized as revenue. The company’s cloud revenue hit $8.0 billion for the quarter, a 34% increase. (Source: https://investor.oracle.com/investor-news/…)
Friday’s Air Force notice highlighted some fine print. It revealed $280,000 of fiscal 2026 operations and maintenance funds locked in at award, while the remainder depends on delivery and funding schedules — a timing risk investors often overlook in steady markets but price in swiftly when volatility hits.
Next week, software stocks could see another shakeup as megacaps reveal their cloud spending. Alphabet is set to report earnings Feb. 4 after the market closes, followed by Amazon on Feb. 5 after the close. (Sources: https://www.nasdaq.com/market-activity/sto… https://www.nasdaq.com/market-activity/sto…)
Macro factors might shift the trade. The U.S. employment report for January drops Feb. 6 at 8:30 a.m. ET, though the Labor Department warns some release dates could shift if government services lapse. (Source: https://www.bls.gov/schedule/2026/02_sched…)
Oracle’s next major test comes with its fiscal third-quarter earnings report, expected in mid-March. Investors will be watching closely for new insights on cloud demand, infrastructure expansion, and the costs involved in capturing that business. (Source: https://investor.oracle.com/faq/default.as…)
