Oracle’s Race to Net Zero: Cloud Gains, AI Wins, But Earnings Miss the Mark for Q3 2025

Like
Liked

Date:

Oracle’s Race to Net Zero: Cloud Gains, AI Wins, But Earnings Miss the Mark for Q3 2025

Oracle’s Q3 2025 results showed mixed performance, with revenue and earnings missing expectations. However, the company saw strong cloud growth, securing major AI-driven deals with OpenAI, Meta, and Nvidia. At the same time, Oracle is making strides in sustainability, aiming for net-zero emissions by 2050.

Despite a recent stock dip, Oracle’s cloud expansion and green initiatives position it as a long-term tech leader.

Oracle’s Cloud Growth and Financial Hurdles

In its fiscal third quarter of 2025, Oracle reported a revenue of $14.13 billion. This was slightly below analysts’ expectations of $14.38 billion. The company’s adjusted earnings per share were $1.47, missing the anticipated $1.49.

Despite these misses, Oracle’s cloud services and license support revenue grew by 10%, reaching $11 billion. However, this was still under the expected $11.21 billion.

  • The company announced a 25% increase in its quarterly dividend, raising it to 50 cents per share.
Oracle Corporation Q3 2025 financial results
Source: AlphaStreet

Oracle also secured significant cloud agreements with major tech firms, including OpenAI, Meta Platforms, and Nvidia. These deals are expected to boost Oracle’s cloud infrastructure and AI initiatives.

The company’s remaining performance obligations (RPOs) increased by 62%. They now total $130 billion. This exceeded analysts’ expectations and indicates strong future demand.

Oracle projects a 15% revenue growth for the next fiscal year, driven by its cloud infrastructure and AI initiatives. However, the cloud giant’s stock experienced a decline in pre-market trading following these results.

Oracle stock has dropped 4.1% amid broader market selloffs and is down 11% this year. Nevertheless, it has gained 30% over the last 12 months.

Amid its financial hits and misses, Oracle continues to push forward with its sustainability and net-zero promises.

Oracle’s Sustainability Initiatives and Path to Net Zero 

Oracle Corporation has established itself as a leader in integrating sustainable practices into its operations, aiming to minimize environmental impact and promote a circular economy. The company’s sustainability strategy includes:

  • Setting ambitious goals,
  • Creative cloud solutions, and
  • Teamwork with suppliers and customers.

Ambitious Sustainability Goals

Oracle has set clear targets to guide its sustainability initiatives. The company aims to achieve net-zero greenhouse gas (GHG) emissions across its operations and supply chain by 2050. 

As an intermediate goal, Oracle plans to halve its GHG emissions by 2030, relative to a 2020 baseline. It has pledged to use 100% renewable energy for all its global operations, including cloud data centers, by 2025. 

Oracle 2025 sustainability goals
Source: Oracle

The IT company wants all its key suppliers to have environmental programs. It also aims for 80% of them to set emissions reduction targets by 2025.

The company aims for a 33% cut in both drinking water use and landfill waste per square foot. It also targets a 25% reduction in employee air travel emissions by 2025. Oracle shows its commitment to the environment by aligning its operations with these goals for a greener future.

Greener Data Centers, Smarter AI

Oracle is making great strides in lessening the environmental impact of its cloud services. The company has put a lot of money into energy-efficient data centers. It uses advanced cooling tech and AI for better power management. 

Oracle Cloud Infrastructure (OCI) aims to deliver high-performance computing. It does this while using less energy than traditional on-premises systems. In 2023, OCI sourced 86% of its energy from renewables. Data centers in Europe and Latin America reached 100% renewable energy use.

Also, Oracle helps businesses track and manage their carbon footprint. Their cloud solutions guide customers in making smart sustainability choices. The company is setting the standard for responsible computing by making sustainability a key part of its cloud services.

Innovative Sustainability Solutions and Supply Chain Management

Oracle has introduced solutions to help organizations manage and report on their sustainability initiatives:

  • Oracle Fusion Cloud Sustainability: Launched in September 2024, this app helps organizations capture and analyze key sustainability data. It streamlines reporting and boosts decision-making, all at no extra cost.
  • Oracle Cloud EPM for Sustainability: Launched in March 2024, this tool helps organizations track and manage sustainability efforts. It links data, plans, and goals, making it easier to comply with new reporting standards.

The tech company emphasizes sustainability throughout its supply chain:

  • Design and Sourcing: The company creates eco-friendly products. It also sources materials responsibly to lessen environmental impacts.
  • Manufacturing and Transportation: Oracle focuses on making and moving products in a sustainable way. They aim to save costs while also providing better service.

Oracle’s Green Milestones: Progress, Wins, and What’s Next

Oracle has made significant strides toward its sustainability goals. The company has already transitioned all European cloud regions to 100% renewable energy, setting a precedent for other regions to follow. 

More than 50 facilities worldwide now run on renewable energy. This shift helps cut corporate emissions. The company has cut total emissions by 47% since 2020. This shows strong progress toward its targets for 2030 and 2050.

Oracle energy and GHG emissions 2024
Source: Oracle Report

Oracle also has a strong hardware recycling program. They collect and repurpose millions of pounds of old IT assets. Nearly all of these items are reused or recycled. 

The tech company also partners with its suppliers to promote sustainability. It aims for all key suppliers to have environmental programs by 2025. It reports that 80% of its key suppliers have emissions reduction targets in place, aligning with the company’s sustainability objectives.

The company cut potable water use and waste to landfills by 33% per square foot. It also reduced employee air travel emissions by 25%. These achievements will meet the 2025 targets early.

These efforts highlight Oracle’s proactive approach to reducing its environmental footprint. The company’s steps in renewable energy, cutting emissions, and saving resources show its commitment to a sustainable future. 

With a push toward 100% renewable energy and net-zero emissions by 2050, Oracle is balancing innovation with environmental responsibility. As the company expands its cloud infrastructure and green initiatives, it remains a key player in both the tech and sustainability space.

The post Oracle’s Race to Net Zero: Cloud Gains, AI Wins, But Earnings Miss the Mark for Q3 2025 appeared first on Carbon Credits.

ALT-Lab-Ad-1
ALT-Lab-Ad-2
ALT-Lab-Ad-3
ALT-Lab-Ad-4
ALT-Lab-Ad-5
ALT-Lab-Ad-6
ALT-Lab-Ad-7
ALT-Lab-Ad-8
ALT-Lab-Ad-9
ALT-Lab-Ad-10
ALT-Lab-Ad-11
ALT-Lab-Ad-12
ALT-Lab-Ad-13

Recent Articles