IBM has secured a $112 million, up‑to‑five‑year contract with the Defense Commissary Agency (DeCA) to modernize electronic shelf‑label (ESL) pricing displays across 177 U.S. commissaries and 58 overseas locations in 12 countries. The award, announced on February 25 2026, was originally granted on October 27 2025 and carries a ceiling value of $112,485,055.00.
The contract covers a comprehensive suite of services, including hardware maintenance, software licenses, security and vulnerability mitigation, training, and ongoing support for DeCA’s existing ESL infrastructure. The multi‑year arrangement ensures IBM will deliver and maintain the technology throughout the contract term.
IBM’s focus on hybrid‑cloud and AI platforms is reinforced by this win. The deal provides a steady revenue stream and demonstrates the company’s ability to execute integrated hardware‑software solutions in mission‑critical environments, supporting its broader strategy to grow its software‑centric business while maintaining a foothold in defense operations.
"IBM is proud to continue supporting DeCA’s mission to deliver a modern, efficient shopping experience for military families worldwide. This award underscores our commitment to innovation and operational excellence across the defense retail ecosystem," said Susan Wedge, Managing Partner, U.S. Federal Market for IBM.
The contract win comes amid heightened scrutiny of IBM’s legacy mainframe business following concerns about AI tools that could disrupt traditional modernization services. The DeCA agreement is a positive development that underscores IBM’s strength in government contracts and provides a stable, long‑term revenue source.
By adding this contract to its portfolio of defense‑related projects, IBM strengthens its position in the federal market and supports its long‑term transformation toward software, hybrid‑cloud, and AI, helping to offset headwinds from AI‑driven disruption in legacy segments.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.