The company has been awarded a significant 10-year, $931 million contract from the U.S. Department of Defense to modernize data centers with a distributed hybrid multi-cloud solution, underscoring federal confidence in its cloud and AI capabilities. However, near-term challenges exist, with a slight dip in its analyst price target and caution over headwinds in some hardware segments. The company is also in a competitive battle for networking dominance as AI demand surges, following a major acquisition intended to bolster its growth prospects.