Microsoft Secures $170M Air Force Cloud Contract Amid Stock Slump
Microsoft (MSFT) clinched a $170.44 million sole-source contract from the U.S. Air Force for its Cloud One Program, with work commencing immediately through December 2028. The non-competitive award underscores Azure's dominance in government cloud infrastructure despite Microsoft's recent market struggles.
Shares have tumbled 20% from October's peak, erasing $700 billion in market cap as analysts at Citigroup, Mizuho, and TD Cowen slashed price targets. The decline contrasts sharply with Azure's 40% revenue growth last quarter—a bright spot in an otherwise turbulent tech landscape.
The DoD contract, funded partially by 2026 operations budgets, positions Microsoft as a critical partner in military cloud modernization. No cryptocurrencies or exchanges were directly involved in this defense-sector deal.