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Sep 30
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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
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 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