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Can IBM’s New Defense Contract Win Boost Top-Line Growth?

Can IBM’s New Defense Contract Win Boost Top-Line Growth?

By Zacks Equity Research
Publication Date: 2026-02-26 15:26:00

International Business Machines Corporation IBM has secured a five-year contract worth up to $112 million from the Department of War’s (DoW) Defense Commissary Agency (DeCA) to upgrade pricing displays at military commissaries worldwide. This deal will help the company to enhance operational efficiency and improve the shopping experience for U.S. military personnel and their families.

Per the agreement, IBM will upgrade Electronic Shelf Label (ESL) systems at 177 U.S. commissaries and install new systems at 58 overseas locations in 12 countries, enabling real-time price updates and better product availability. The new system is also expected to reduce manual work and support the DoW’s broader digital transformation efforts.

IBM will also provide hardware maintenance, software licenses, security, vulnerability mitigation, training and ongoing support for the existing ESL infrastructure, including proprietary Pricer ESL solutions, along with third-party systems, such as Windows…

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