Dell Secures $9.69 Billion Defense Contract, Shares Surge

Dell Technologies shares surged nearly 7% in after-hours trading on Wednesday after the Department of Defense awarded the company a $9.69 billion contract to supply software and related services to the US military.

The deal, which was won by Dell Federal Systems, a unit of the company dedicated to serving the government, is part of the Department of War Enterprise Software Initiative.

The contract will simplify and consolidate software procurement across the Department of War, the Intelligence Community, and the US Coast Guard, allowing agencies to access Microsoft (MSFT) software licenses, cloud subscriptions, and Software Assurance through a unified framework.

The agreement also supports existing reliance on Microsoft products while expanding cloud and hybrid capabilities through tiered Microsoft 365 offerings and specialized packages.