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Sep 30, 2025
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SAP Q3 2025 Earnings Report
SAP reported a strong third quarter, with double-digit growth in cloud revenue and profitability, driven by robust demand for its ERP and AI offerings.
Key Takeaways
SAP achieved solid growth in Q3 2025, led by a 22% increase in cloud revenue and a 37% jump in EPS. The company improved its outlook for the full year, highlighting strong cloud momentum and operational discipline.
Cloud revenue rose 22% to €5.29 billion
Cloud ERP Suite revenue surged 26% to €4.59 billion
Operating income (IFRS) grew 12% to €2.49 billion
Free cash flow increased to €1.27 billion in the quarter
Revenue by Segment
Forward Guidance
SAP raised its full-year outlook, now guiding toward the upper end of operating profit and free cash flow, and the lower end for cloud revenue.
Positive Outlook
- Cloud revenue expected to grow 26–28% YoY
- Non-IFRS operating profit outlook raised to €10.6B
- Free cash flow outlook raised to €8.2B
- Strong pipeline for Q4 supports confidence into 2026
- Stable effective tax rate around 32% expected
Challenges Ahead
- Cloud backlog growth expected to decelerate slightly in 2025
- Exchange rate impacts expected to reduce reported growth
- Restructuring costs affected Q3 operating profit by ~€0.1B
- Additional €0.1B restructuring impact expected in Q4
- EU Commission began formal proceedings related to on-premise support policies
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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