SAP has released its Quarterly Statement Q3 2025, revealing an exceptionally strong quarter driven by accelerating cloud adoption and disciplined execution.

Oct 23, 2025

The results underscore SAP’s successful shift to the cloud and its focus on future-proof growth.

Here are the key takeaways from the report:

Financial Highlights

SAP’s cloud business fueled impressive growth across the board (figures are at constant currencies):

  • Cloud Backlog Soars: The current cloud backlog reached €18.8 billion, marking a robust 27% increase.
  • Cloud Revenue Jumps: Cloud revenue was up 27% to €5.29 billion.
  • Core Cloud Strength: Cloud ERP Suite revenue demonstrated exceptional performance, growing 31% to €4.59 billion.
  • Profitability Rises: Non-IFRS operating profit was up 19% to €2.57 billion.
  • Total Revenue Up: Total revenue grew 11% to €9.08 billion.
  • Predictable Revenue: The share of more predictable revenue increased by 2 percentage points to 87%.

Customer and Strategic Wins

The quarter saw significant customer momentum and strategic moves, validating SAP’s cloud strategy:

  • RISE and GROW with SAP: Global companies continue to choose “RISE with SAP” for their end-to-end business transformation, including major names like Alphabet and Ericsson. New cloud customers also adopted the “GROW with SAP” journey, including Kodiak AI and Perplexity.
  • Major U.S. Army Deal: SAP National Security Services (SAP NS2®) secured a significant $1 billion contract from the United States Army for the RISE with SAP portfolio, set to run through 2035.
  • Strategic Partnerships: SAP expanded its ecosystem through new collaborations, including:
    • The acquisition of SmartRecruiters, a leading talent acquisition software provider.
    • A partnership with ADP to enable shared clients to run cloud payroll solutions.
    • A partnership with OpenAI for a focused offering in Germany’s public sector.
    • Expanded partnerships with AWS and Google Cloud for Sovereign Cloud and data integration, respectively.

Updated 2025 Outlook

Confidence in the company’s model and a strong Q3 led SAP to update its full-year 2025 outlook:

  • Non-IFRS Operating Profit: Now expected towards the upper end of the €10.3–10.6 billion range.
  • Free Cash Flow: The outlook has been raised to €8.0–8.2 billion.
  • Cloud Revenue: Expected towards the lower end of the €21.6–21.9 billion range.

In summary, SAP’s Q3 2025 statement paints a picture of a company successfully navigating the macroeconomic environment, consolidating its market position in the cloud, and executing on its strategy for accelerated, profitable growth into 2026.

SAP has released its Quarterly Statement Q3 2025, revealing an exceptionally strong quarter driven by accelerating cloud adoption and disciplined execution. The results underscore SAP’s successful shift to the cloud and its focus on future-proof growth.

Here are the key takeaways from the report:

Financial Highlights

SAP’s cloud business fueled impressive growth across the board (figures are at constant currencies):

  • Cloud Backlog Soars: The current cloud backlog reached €18.8 billion, marking a robust 27% increase.
  • Cloud Revenue Jumps: Cloud revenue was up 27% to €5.29 billion.
  • Core Cloud Strength: Cloud ERP Suite revenue demonstrated exceptional performance, growing 31% to €4.59 billion.
  • Profitability Rises: Non-IFRS operating profit was up 19% to €2.57 billion.
  • Total Revenue Up: Total revenue grew 11% to €9.08 billion.
  • Predictable Revenue: The share of more predictable revenue increased by 2 percentage points to 87%.

Customer and Strategic Wins

The quarter saw significant customer momentum and strategic moves, validating SAP’s cloud strategy:

  • RISE and GROW with SAP: Global companies continue to choose “RISE with SAP” for their end-to-end business transformation, including major names like Alphabet and Ericsson. New cloud customers also adopted the “GROW with SAP” journey, including Kodiak AI and Perplexity.
  • Major U.S. Army Deal: SAP National Security Services (SAP NS2®) secured a significant $1 billion contract from the United States Army for the RISE with SAP portfolio, set to run through 2035.
  • Strategic Partnerships: SAP expanded its ecosystem through new collaborations, including:
    • The acquisition of SmartRecruiters, a leading talent acquisition software provider.
    • A partnership with ADP to enable shared clients to run cloud payroll solutions.
    • A partnership with OpenAI for a focused offering in Germany’s public sector.
    • Expanded partnerships with AWS and Google Cloud for Sovereign Cloud and data integration, respectively.

Updated 2025 Outlook

Confidence in the company’s model and a strong Q3 led SAP to update its full-year 2025 outlook:

  • Non-IFRS Operating Profit: Now expected towards the upper end of the €10.3–10.6 billion range.
  • Free Cash Flow: The outlook has been raised to €8.0–8.2 billion.
  • Cloud Revenue: Expected towards the lower end of the €21.6–21.9 billion range.

In summary, SAP’s Q3 2025 statement paints a picture of a company successfully navigating the macroeconomic environment, consolidating its market position in the cloud, and executing on its strategy for accelerated, profitable growth into 2026.