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Mar 31
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SAP Q1 2025 Earnings Report
SAP reported strong Q1 2025 results with double-digit growth in total revenue, a surge in cloud-related income, and significant improvements in operating and net income.
Key Takeaways
SAP delivered a solid Q1 2025 performance marked by 12% total revenue growth, a 27% increase in cloud revenue, and a return to profitability supported by restructuring-driven cost efficiencies.
Total revenue rose to €9.01 billion, up 12% year-over-year.
Cloud revenue surged 27% to €4.99 billion.
Operating income reached €2.33 billion, rebounding from a loss in Q1 2024.
Free cash flow increased 36% to €3.58 billion.
SAP
SAP
SAP Revenue by Segment
Revenue by Segment
Cloud Revenue
CapyFin.comCloud ERP Suite Revenue
CapyFin.comExtension Suite Revenue
CapyFin.comIaaS Revenue
CapyFin.comCloud and Software Revenue
CapyFin.comServices Revenue
CapyFin.com Forward Guidance
SAP expects continued growth in cloud and software revenue, operating profit, and free cash flow for FY 2025 despite foreign exchange headwinds and economic uncertainties.
Positive Outlook
- Cloud revenue expected to reach €21.6–21.9 billion, up 26–28%.
- Cloud and software revenue projected at €33.1–33.6 billion.
- Non-IFRS operating profit guidance set at €10.3–10.6 billion.
- Free cash flow forecasted to double to approximately €8.0 billion.
- Tax rate (non-IFRS) expected to stabilize around 32%.
Challenges Ahead
- Cloud backlog growth expected to slightly decelerate.
- Currency fluctuations projected to negatively impact reported results.
- Continued caution due to volatile macroeconomic environment.
- Restructuring payouts will continue into the remainder of 2025.
- Uncertainty around ability to offset withholding taxes may impact tax rates.
Revenue & Expenses
Visualization of income flow from segment revenue to net income