SAP SE, Europe’s largest enterprise software provider, posted robust second-quarter 2025 results, driven by surging cloud adoption and disciplined cost management.
Total revenue rose 9% year-over-year to €9.03 billion, with cloud revenue jumping 24% to €5.13 billion and Cloud ERP Suite revenue up 30% to €4.42 billion.
In the period ended June 30, cloud and software revenues increased by 11% to €7.97 billion. According to Bloomberg data, that missed analysts' average estimates of €7.99 billion.
IFRS operating profit more than doubled to €2.46 billion, while non-IFRS operating profit climbed 32% to €2.57 billion.
Basic earnings per share surged 91% to €1.45, reflecting strong margin expansion and operational efficiency gains.
Strategic initiatives continue to gain traction, with high-profile customers like Alibaba Group and Mercedes-AMG PETRONAS Formula One adopting SAP’s “RISE with SAP” transformation platform.
SAP also expanded partnerships with Accenture and Palantir to accelerate AI and cloud migration efforts.
Regional cloud growth was strongest in Asia-Pacific and Japan (APJ), up 33%, followed by EMEA at 29% and the Americas at 16%.
CEO Christian Klein’s contract extension to 2030 signals leadership continuity as SAP deepens its cloud-first strategy and AI integration.
Klein said: “We have delivered yet another quarter of outstanding results. AI innovations such as Joule becoming available ‘everywhere and for everything’ and SAP Business Data Cloud as a powerful accelerator of AI make our portfolio ever stronger. Enterprise operations are about to enter a new era, and SAP is best positioned to benefit from that evolution.”
SAP reaffirmed its full-year guidance, projecting cloud revenue between €21.6 billion and €21.9 billion, and non-IFRS operating profit between €10.3 billion and €10.6 billion.
Free cash flow is expected to reach €8 billion, up sharply from the prior year.
Dominik Asam, CFO said: “We achieved a very good Q2, with accelerating total revenue growth, strong profitability and free cash flow. Our performance was supported by continued customer demand and disciplined cost control. As we move into the second half, we remain cautiously optimistic, keeping a close eye on geopolitical developments and public sector trends.”
The company’s €5 billion share repurchase program remains active, with €4.6 billion already deployed as of 30 June, 2025.
SAP’s cloud backlog has hit €18.1 billion, up 22%, though growth is expected to moderate slightly in the second half.
Headquartered in Walldorf, Germany, SAP SE develops cloud-based enterprise resource planning (ERP), analytics, and business process software.
It owns platforms like SAP S/4HANA Cloud and SAP Business Technology Platform, and operates globally across EMEA, APJ, and the Americas.
SAP trades on the NYSE and Xetra exchanges, with institutional investors such as BlackRock (6.91%), Vanguard (4.06%), and Dietmar Hopp Stiftung GmbH (5.36%) among its largest shareholders.
The company employs nearly 50,000 people and invests in sustainability, employee engagement, and AI-driven innovation.
At the time of writing, SAP SE (ETR: SAP) stocks were trading at €259.50, down €3.95 (1.5%) today. Its market cap is around €320.63 billion.
All financials in Euros.
