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Dec 31, 2025
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SAP Q4 2025 Earnings Report
SAP reported strong Q4 results driven by cloud momentum and AI integration.
Key Takeaways
SAP delivered a solid Q4 with increased cloud revenue, strong net income, and improved free cash flow. The company exceeded expectations on profitability and saw significant uptake in AI-driven cloud services.
Cloud revenue rose to €5.61B, led by ERP suite demand.
Net income increased to €1.896B in Q4.
Free cash flow rebounded from negative to €1.03B.
SAP Business AI featured in two-thirds of Q4 cloud orders.
Revenue by Segment
Forward Guidance
SAP expects continued growth in cloud revenue and profitability in 2026, supported by strong customer adoption of cloud solutions and disciplined operational execution.
Positive Outlook
- Cloud revenue expected to grow to €25.8–26.2B in 2026
- Cloud and software revenue guided to €36.3–36.8B
- Non-IFRS operating profit forecasted at €11.9–12.3B
- Free cash flow expected around €10B
- Stable employee engagement and culture KPIs projected
Challenges Ahead
- Cloud backlog growth expected to decelerate slightly
- Currency fluctuations likely to impact reported growth
- Software support revenue decline to accelerate
- Higher operating expenses projected through 2027
- Tax rate volatility from ongoing litigation and restructuring
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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