Oracle’s Cloud and AI Success Overshadowed by Q3 2025 Earnings Disappointment

Oracle's Q3 2025 Results Reflect Mixed Performance: Strong Cloud Growth and Sustainability Initiatives Amid Revenue and Earnings Miss.

Oracle’s third-quarter results for 2025 have presented a mixed bag, with revenue and earnings falling short of expectations. Despite this, the tech giant has witnessed robust growth in its cloud services, clinching significant AI-driven deals with industry heavyweights like OpenAI, Meta, and Nvidia. Additionally, Oracle is making significant strides in sustainability, with a target of achieving net-zero emissions by 2050. Despite a recent drop in stock value, Oracle’s cloud expansion and eco-friendly endeavors position it as a long-term leader in the tech industry.

In the fiscal third quarter of 2025, Oracle disclosed a revenue of $14.13 billion, slightly below the projected $14.38 billion. The company’s adjusted earnings per share stood at $1.47, missing the expected $1.49. Nonetheless, Oracle saw a 10% growth in its cloud services and license support revenue, reaching $11 billion, albeit still falling short of the anticipated $11.21 billion. Oracle announced a 25% hike in its quarterly dividend, raising it to 50 cents per share. Source: AlphaStreet

Oracle also inked significant cloud agreements with major tech players such as OpenAI, Meta Platforms, and Nvidia, aimed at bolstering its cloud infrastructure and AI endeavors. The company’s remaining performance obligations (RPOs) surged by 62%, now totaling $130 billion, surpassing analysts’ projections and indicating strong future demand. Oracle forecasts a 15% revenue growth in the upcoming fiscal year, driven by its cloud infrastructure and AI initiatives. However, Oracle’s stock witnessed a decline in pre-market trading post these results, with a 4.1% drop amidst broader market downturns, marking an 11% decrease for the year, yet a 30% increase over the past 12 months.

Amid financial challenges, Oracle continues to forge ahead with its sustainability commitments and net-zero objectives.

Oracle Corporation has positioned itself as a frontrunner in incorporating sustainable practices into its operations, with a focus on minimizing environmental impact and fostering a circular economy. The company’s sustainability strategy encompasses setting ambitious goals, offering creative cloud solutions, and collaborating with suppliers and customers.

Oracle has set ambitious targets to steer its sustainability initiatives, aiming to achieve net-zero greenhouse gas (GHG) emissions across its operations and supply chain by 2050. As an interim goal, Oracle plans to halve its GHG emissions by 2030 compared to a 2020 baseline. The company has committed to utilizing 100% renewable energy for all its global operations, including cloud data centers, by 2025. Oracle is striving to have all its key suppliers implement environmental programs, with 80% of them setting emissions reduction targets by 2025. The company is targeting a 33% reduction in drinking water use and landfill waste per square foot, along with a 25% decrease in employee air travel emissions by 2025. Oracle’s alignment with these goals underscores its dedication to environmental stewardship and a sustainable future.

Oracle is making significant strides in reducing the environmental impact of its cloud services by investing in energy-efficient data centers, employing advanced cooling technologies, and leveraging AI for enhanced power management. Oracle Cloud Infrastructure (OCI) aims to provide high-performance computing while consuming less energy than traditional on-premises systems. In 2023, OCI sourced 86% of its energy from renewables, with data centers in Europe and Latin America achieving 100% renewable energy use. Oracle assists businesses in monitoring and managing their carbon footprint through its cloud solutions, guiding customers in making sustainable choices and setting a benchmark for responsible computing.

Oracle has introduced solutions to aid organizations in managing and reporting on their sustainability initiatives, such as Oracle Fusion Cloud Sustainability and Oracle Cloud EPM for Sustainability. These tools streamline reporting processes and enhance decision-making, with a focus on compliance with new reporting standards. Oracle emphasizes sustainability throughout its supply chain, from design and sourcing eco-friendly products to manufacturing and transportation practices that prioritize sustainability, cost savings, and improved service delivery.

Oracle has made significant progress toward its sustainability objectives, transitioning all European cloud regions to 100% renewable energy and ensuring that over 50 facilities worldwide operate on renewable energy sources. The company has reduced total emissions by 47% since 2020, demonstrating substantial progress toward its 2030 and 2050 targets. Oracle also boasts a robust hardware recycling program, repurposing millions of pounds of old IT assets, with nearly all items being reused or recycled. The company collaborates with suppliers to promote sustainability, with 80% of key suppliers aligning with Oracle’s sustainability objectives by having emissions reduction targets in place. Oracle’s achievements in reducing water consumption, waste, and employee air travel emissions highlight its proactive approach to lessening its environmental footprint.

Oracle’s commitment to a sustainable future is evident in its push toward 100% renewable energy and net-zero emissions by 2050. As the company expands its cloud infrastructure and green initiatives, it remains a pivotal player in both the tech and sustainability realms.

Matt Lyons

Matt Lyons

Matt Lyons is the founder of Forestry & Carbon. Matt has over 25 years as a forestry consultant and is invoilved in numerous carbon credit offset projects.

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