SAP Unveils Q4 and Full-Year 2025 Financial Results
SAP SE has released its financial results for the fourth quarter and the entire fiscal year ending December 31, 2025. The company showcased impressive growth metrics across various segments, highlighting its strong position in the cloud computing market.
SAP Q4 and Full-Year 2025 Financial Highlights
- Total Revenue: Increased by 8%, and by 11% when adjusted for constant currencies.
- Cloud Revenue: Rose by 23%, with a 26% increase at constant currencies.
- Cloud ERP Suite Revenue: Grew by 28%, and by 32% when adjusted for constant currencies.
- IFRS Operating Profit: Up by 111%; Non-IFRS operating profit increased by 28%, 31% at constant currencies.
- Share Repurchase Program: A new two-year program worth up to €10 billion has been announced.
- Total Cloud Backlog: Increased by 22%, achieving a record level of €77 billion.
- Current Cloud Backlog: Gained 16%, with a 25% growth rate at constant currencies.
Executive Insights
Christian Klein, CEO of SAP, described the fourth quarter as exceptionally strong for the cloud segment. He noted that cloud bookings led to a significant 30% growth in total cloud backlog, providing a solid foundation for future revenue increases through 2027.
Klein emphasized the role of SAP Business AI as a major growth driver. It was included in two-thirds of the company’s Q4 cloud order entries, showcasing the strong adoption of AI across its ERP Suite.
Dominik Asam, CFO, commented on the strong operating profit and free cash flow performance. He attributed this success to focused execution and financial discipline, underscoring the ongoing trust SAP’s customers place in the company for their digital transformation needs.
Outlook and Strategic Focus
The impressive growth rates in Software as a Service (SaaS) and Platform as a Service (PaaS) underline SAP’s strategic initiatives. The company’s ability to convert growth into bottom-line results, along with consistent free cash flow, positions it for long-term value creation.
For further details and comprehensive results, interested parties are encouraged to refer to the Quarterly Statement available on Filmogaz.com.
