Oracle Stock Slips as Firm Gives Big Services Discount to US Government

Bill McColl

Mon, Jul 7, 2025, 10:26 AM 2 min read

• Oracle is reducing what it charges the federal government for its services through November.

• The agreement includes a 75% discount on the company's license-based technology.

• Oracle joined Google, Adobe, Salesforce, and Elastic in offering lower prices to the U.S.

Oracle (ORCL) is slashing the cost of its database and cloud-computing services to the U.S. through November, as the Trump administration moves to modernize systems while cutting costs. Shares slipped 1.5% from their all-time closing high recorded last Thursday.

The General Services Administration (GSA) announced that the agreement gives government agencies "a 75% discount on Oracle's License-based technology, substantial base discounts and access to advanced data management technology including Oracle Database 23ai running on Oracle Cloud Infrastructure (OCI) through November 2025."

CEO Safra Catz said the software firm was "thrilled" to be working with the GSA to update the country's technology, noting that with the use of artificial intelligence through Oracle's cloud, "government agencies will be able to do more while spending far fewer taxpayer dollars."

Acting GSA Administrator Stephen Ehikian called it a "landmark agreement" that was a major step in the administration's effort to acquire "cutting-edge commercial technologies to modernize federal systems at scale."

The GSA explained that the deal was part of its OneGov program, which "establishes pricing based on the volume of the entire government rather than the lower discounts previously available through separate agreements on an agency-by-agency or transactional basis."

The GSA had previously received tech pricing deals from Alphabet's (GOOGL) Google, Adobe (ADBE), Salesforce (CRM), and Elastic (ESTC).

Even with today's decline, Oracle shares are up roughly 40% this year.

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