Q3 2025: SAP Relies on Continued Cloud Growth

The current cloud backlog rose to 18.8 billion euros—an increase of 23 percent compared to the previous year, or 27 percent when adjusted for currency effects. Overall cloud revenue also grew strongly: up 22 percent in nominal terms or 27 percent adjusted for currency effects. The Cloud ERP Suite performed particularly strongly with growth of 26 percent (nominal) and 31 percent adjusted for currency effects. Total revenue increased by 7 percent to 9.08 billion EUR, or by 11 percent when adjusted for currency effects. Operating profit grew by 12 percent according to IFRS, by 14 percent according to non-IFRS and by 19 percent adjusted for currency effects.

SAP has slightly adjusted its outlook for the full year 2025. Cloud growth is now expected to be at the lower end of the originally forecast range of 21.6 to 21.9 billion EUR. Christof Kerkmann from Handelsblatt (a German business magazine) notes a certain reluctance on the customer side in some segments. Uncertainty prevails in the US public sector in particular, which has led to delays in concluding contracts.

Confident management board

The management is confident. "SAP delivered a great Q3 with strong cloud revenue growth of 27 percent. We are gaining market share as our customers are adopting solutions across the entire Business Suite, including Business Data Cloud and AI at accelerated pace. For Q4 we are executing against a strong pipeline," says CEO Christian Klein.

CFO Dominik Asam also underlined the company's resilience: „Q3’s strong performance underscores the strength and agility of our model. Through disciplined execution and a sharp focus on profitability and cash flow, we’ve maintained forward momentum despite an uncertain macroeconomic backdrop. We enter the fourth quarter confident in our ability to deliver on our commitments, as reflected by an improved outlook for operating profit and free cash flow.“

Consistent cloud focus

The company is consistently maintaining its strategic cloud focus. Anyone expecting very high growth rates could be disappointed. However, those focusing on solid, medium-term cloud transformation will see positive potential. Competition for cloud customers is intensifying, demand cycles are becoming longer and exchange rate effects are slowing down growth. Despite these challenges, SAP has a solid foundation. The cautious adjustment of the outlook indicates that SAP is taking a realistic view of the market environment. The decisive factor for the coming year will be whether SAP can once again increase the pace of growth in the cloud business - particularly with regard to new AI-based solutions.

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"We are gaining market share as our customers are adopting solutions across the entire Business Suite."

Christian Klein,
CEO,
SAP

Source: SAP