TLDR
- Microsoft landed a $170.44 million Air Force contract for Azure cloud services running through December 2028.
- The sole source task order supports the Air Force’s Cloud One Program with work across U.S. facilities.
- MSFT shares have tumbled 20% from October highs, erasing over $700 billion in market value.
- Wall Street firms cut price targets while maintaining buy ratings on the stock.
- Azure cloud revenue jumped 40% last quarter, beating analyst estimates.
Microsoft scored a $170.44 million contract from the U.S. Air Force for cloud services. The Department of Defense announced the award on January 21, 2026.
Air Force
Microsoft $MSFT
” was awarded a $170M firm-fixed-price task order for the Cloud One Program.” pic.twitter.com/xy2oldtIPx
— WOLF DEFENSE (@Wolf_Defense_) January 21, 2026
The firm-fixed-price task order covers Azure cloud offerings for the Air Force’s Cloud One Program. Microsoft will deliver services through December 7, 2028.
All work happens at Microsoft facilities across the continental United States. The Air Force Life Cycle Management Center handed out the contract without competitive bidding.
Initial funding includes $1.94 million from fiscal 2026 operations and maintenance budgets. The full contract spans nearly three years with the complete $170.44 million value.
Cloud One serves as the Air Force’s enterprise cloud platform. The program delivers communication and cloud capabilities for military mission applications.
Microsoft works alongside Amazon Web Services, Google Cloud, and Oracle on the program. Each vendor provides different cloud services to support Air Force operations.
Share Price Slump Continues
MSFT stock dropped in six of seven sessions before the contract announcement. Shares now trade about 20% below their October 28 peak.
Market cap fell from over $4 trillion in October to $3.3 trillion. The stock lost 2.3% on January 21 despite a broader market rally.
President Trump’s reversal on Greenland tariffs boosted other stocks that day. Microsoft shares bucked the trend and continued sliding.
Multiple brokerages trimmed their price targets recently. Citigroup, Mizuho, and TD Cowen all lowered expectations for the stock.
Strong Cloud Growth Meets Weak Sentiment
Azure cloud business grew 40% in the September quarter. The performance topped Wall Street forecasts at the time.
Analysts remain optimistic despite recent target cuts. Data from Koyfin shows 56 of 58 analysts rate the stock buy or higher. Two analysts recommend holding shares.
The average price target sits at $622.20 per share. That implies roughly 40% upside from current levels.
The Air Force contract adds to Microsoft’s growing government cloud portfolio. Azure continues gaining traction with federal agencies and defense customers.
The fiscal 2026 funds obligated at award totaled $1.94 million. The Air Force Life Cycle Management Center manages the contracting process for this task order.
Work under the contract begins immediately and runs through the end of 2028. Microsoft will use existing facilities nationwide to fulfill service requirements.
The post Microsoft (MSFT) Stock: Air Force Awards $170 Million Cloud One Contract appeared first on Blockonomi.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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