Oracle (NYSE: ORCL) said on 27 October 2026 it plans to obtain FedRAMP Class D certification for its multicloud AI database services, opening a route into regulated US government workloads.
The certification, formerly known as FedRAMP High, would apply to Oracle AI Database@AWS, @Azure and @Google Cloud, the company said in a statement issued at Oracle AI World in Las Vegas.
What the FedRAMP certification covers
Once obtained, the certification would let US government and public-sector bodies with FedRAMP requirements run regulated Oracle AI Database workloads on Oracle Exadata Database Service, Oracle said.
That infrastructure would sit inside AWS GovCloud (US), Microsoft Azure Government and Google Cloud Assured Workloads, according to the same release. Google Cloud separately confirmed the plan for its own platform in a corporate blog post, and the announcement was independently reported by Investing.com.
The renaming of FedRAMP’s “High” impact level to Certification Class D took effect under the programme’s 2026 rule changes, part of a wider overhaul known as FedRAMP 20x.
Oracle already has a foothold in federal cloud computing. The company said in March 2026 that its AI Data Platform runs inside Oracle Cloud Infrastructure’s FedRAMP High-authorised Government Cloud, which supports Impact Level 4 and 5 workloads used by defence and intelligence agencies. Tuesday’s announcement extends that federal push to the three-way multicloud database products Oracle has built with AWS, Azure and Google Cloud over the past two years.
Shares sit below their 20-day range
The announcement landed as Oracle shares traded at $131.56, down 8.68% over the trailing 20 sessions and roughly a third lower year-to-date, according to consolidated US exchange data. The stock had plunged 8.83% on 14 October to close at $130.55 amid a broader tech-sector selloff tied to AI buildout concerns, Oracle shares traded 1.18 times their 20-day average volume on the day of the FedRAMP announcement, having ranged between $123.37 and $144.465 over that stretch.
Short interest in the stock had been easing into the announcement. FINRA daily short-sale data show Oracle’s short volume ratio at 0.225 on 27 October, down from a peak of 0.347 on 16 October, pointing to lighter bearish positioning around the event.
Three Oracle insiders filed Form 4 transaction reports with the US Securities and Exchange Commission within hours of the announcement on 27 October, including filings tied to Maria Smith and Stuart Levey. The filings did not disclose share counts or transaction values.
Growth backdrop to the federal push
The government-market expansion comes as Oracle’s cloud business keeps scaling. Quarterly revenue reported under US GAAP has climbed from $13.28bn in the quarter ended February 2024 to $19.345bn in the quarter ended August 2026, according to filings with the SEC. Net income over the same run of quarters has been uneven, ranging from $2.401bn to $6.135bn, reflecting the lumpy timing of large cloud infrastructure contracts rather than a steady upward trend.
Diluted earnings per share moved from $0.85 in the February 2024 quarter to $1.56 in the most recent quarter reported, with a spike to $2.10 in the quarter ended November 2025. That volatility has coincided with investor scrutiny of Oracle’s capital spending on AI data centre capacity, spending the company has defended as necessary to meet cloud demand from both commercial and government customers.
The broader rate backdrop has added pressure to high-multiple technology and AI-linked stocks generally. The 10-year US Treasury yield stood at 5.0% on 26 October, with the 10-year/2-year spread narrowing to 0.29 percentage points, according to Federal Reserve Bank of St. Louis data. US unemployment ticked up to 4.2% in September from 4.1% the prior month, while headline CPI rose to 336.298 from 334.131, separate Federal Reserve data show.
Oracle gave no timetable for when the FedRAMP Class D certification process might conclude. Government customers and systems integrators are likely to watch for formal authorisation milestones from the FedRAMP programme office as the next marker in the rollout.
This article is for information only and is not investment advice or a recommendation to buy or sell any asset. Markets move quickly; figures are correct as sourced at the time of writing. Always do your own research before making financial decisions.
