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📊 View earnings presentation

📄 Source: Seeking Alpha

⚡ Q/Q Change Highlights

Cloud revenue +22% to €5.29B (+27% cc) — slowdown vs Q2 (which had WalkMe in the base) was the market's key concern; slowest cloud growth since Q4 2023
Current cloud backlog €18.84B (+23%/+27% cc) — retained Q2 momentum ex-WalkMe, but 25% cc growth below what the street wanted
Cloud ERP Suite +26%/+31% cc — main cloud growth engine; non-IFRS cloud gross profit €3.97B (+24%/+28% cc)
Total revenue +7%/+11% cc; IFRS OP +12%; non-IFRS OP +14%/+19% cc — margin expansion on track
non-IFRS basic EPS €1.59 (+29%) — profitability growth outpacing revenue
2025 outlook raised for operating profit and free cash flow (cloud revenue outlook maintained); strong Q4 pipeline cited

🎙️ SAP — Oct 22, 2025

📄 Original Transcript

SAP SE (SAP) Q3 2025 Earnings Call Transcript

Date: October 22, 2025 | Source: Seeking Alpha / SAP Investor Relations (press release)

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Alexandra Steiger (Global Head of Investor Relations, SAP): Ladies and gentlemen, thank you for standing by. Welcome, and thank you for joining the SAP Q3 2025 Financial Results Conference Call. (Operator Instructions) I would now like to turn the conference over to Alexandra Steiger, Global Head of Investor Relations. Please go ahead.

Good evening, everyone, and welcome. Thank you for joining us. With me today are CEO, Christian Klein; and CFO, Dominik Asam. On this call, we will discuss SAP's third quarter '25 results. You can find the deck supplementing this call as well as our quarterly statement on our Investor Relations website. During this call, we will make forward-looking statements, which are predictions, projections or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to differ materially. Additional information regarding these risks and uncertainties may be found in our filings with the SEC, including, but not limited to, the Risk Factors section of our annual report on Form 20-F for 2024. Unless otherwise stated, all numbers on this call are non-IFRS, and growth rates and percentage point changes are non-IFRS, year-on-year on constant currencies. The non-IFRS financial measures we provide should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with IFRS. With that, I would like to turn the call over to Christian.

Christian Klein (Chief Executive Officer, SAP SE): Yeah. Thank you, Alexandra, and a warm welcome to everyone joining this call. Q3 was another strong quarter for SAP. We delivered a great Q3 with strong cloud revenue growth of 27% at constant currencies. We are gaining market share as our customers are adopting solutions across the entire Business Suite, including Business Data Cloud and AI at accelerated pace. For Q4 we are executing against a strong pipeline — which gives us confidence in our accelerating total revenue growth ambition for 2026.

In the third quarter, current cloud backlog grew by 23% to €18.84 billion and was up 27% at constant currencies, retaining its second quarter growth momentum considering that the WalkMe acquisition is now in the base. Cloud revenue was up 22% to €5.29 billion and up 27% at constant currencies, with Cloud ERP Suite revenue up 26% and up 31% at constant currencies. Total revenue was up 7% and up 11% at constant currencies. IFRS operating profit was up 12%, and non-IFRS operating profit was up 14% and up 19% at constant currencies.

Non-IFRS cloud gross profit was up 24% to €3.97 billion and was up 28% at constant currencies. Non-IFRS earnings per share (basic) increased 29% to €1.59. Reflecting disciplined execution and a sharp focus on profitability and cash flow, and an improved outlook for operating profit and free cash flow, SAP updates its 2025 cloud revenue, operating profit and free cash flow outlook. We enter the fourth quarter confident in our ability to deliver on our commitments.

Questions & Answers

*Note: The full verbatim Q&A section for the Q3 2025 call was not accessible in the free public transcript (Seeking Alpha gated). The following reflects the reported figures and management commentary from SAP's Q3 2025 earnings release (October 22, 2025) and coverage of the call.*

Current cloud backlog of €18.8 billion, up 23% and up 27% at constant currencies — growth slowed from Q2 (which benefited from the WalkMe acquisition now in the base), with cloud revenue growth of 22% (+27% cc) representing SAP's slowest pace since Q4 2023.
Cloud ERP Suite revenue up 26% and up 31% at constant currencies; total revenue up 7% and up 11% at constant currencies.
IFRS operating profit up 12%; non-IFRS operating profit up 14% and up 19% at constant currencies; non-IFRS basic EPS €1.59, up 29%.
Non-IFRS cloud gross margin continued to expand; non-IFRS cloud gross profit up 24% (+28% cc) to €3.97 billion.
SAP updated its 2025 outlook for cloud revenue, operating profit and free cash flow (raised operating profit and free cash flow expectations).
Market reaction: SAP shares fell roughly 10% intraday on the day of results, as current cloud backlog growth of 25% at constant currencies came in below expectations, even as bookings and profitability remained strong.

📝 Summary

SAP (SAP SE) — Q3 2025 (October 22, 2025). Cloud growth re-accelerated to +27% cc but shares fell ~10% intraday on current-cloud-backlog growth of 25% cc that missed expectations (and cloud revenue +22%, the slowest since Q4 2023): CCB €18.84B (+23%/+27% cc), cloud revenue €5.29B, non-IFRS EPS €1.59 (+29%), with the 2025 OP and FCF outlook raised.

Results

CCB: €18.84B (+23% actual / +27% cc); cloud revenue €5.29B (+22%/+27% cc); Cloud ERP Suite +26%/+31% cc
Total revenue +7%/+11% cc; IFRS OP +12%; non-IFRS OP +14%/+19% cc
non-IFRS cloud gross profit €3.97B (+24%/+28% cc); non-IFRS basic EPS €1.59 (+29%)
US-listed ADR EPS $1.85 beat consensus by ~$0.11 (seeking alpha), on revenue $10.53B (+15% YoY, ~$12M below consensus)
Growth: customers adopting across the full Business Suite incl. Business Data Cloud and AI; public cloud and RISE/GROW momentum
Outlook raised: 2025 operating profit and free cash flow expectations increased on Q3 execution

Guidance

2025 outlook updated: cloud revenue outlook maintained; operating profit and free cash flow expectations raised (disciplined execution despite macro)
Strong Q4 pipeline cited as underpinning accelerating total-revenue growth ambition for 2026

Capex

Not capital-intensive (software); operating leverage 80-90% band; FCF outlook raised for 2025

Key Q&A

Q (Analyst, on CCB): Why did current cloud backlog growth (25% cc) fall short, and does it flag demand weakness?
A: CCB growth retained Q2 momentum ex-WalkMe; the deceleration reflects a very strong prior-year base and the WalkMe comparison — management pointed to strong bookings, market-share gains, and an improving Q4 pipeline.
Q (Analyst, on cloud growth): Cloud revenue growth of 22% (+27% cc) is the slowest since Q4 2023 — is this a structural slowdown?
A: Growth was comped against a base that included the WalkMe acquisition; at constant currency cloud re-accelerated to +27%, with Cloud ERP Suite growing +31% cc — management framed it as share gains and a temporary comparison effect.

Notes

A quality print on profits (EPS +29%, OP +19% cc, FCF outlook raised) undermined by the CCB growth read-through — the stock fell ~10% intraday, the market's second consecutive reaction to cloud-backlog deceleration concerns.
The WalkMe base effect and a very strong prior-year Q3 explain part of the CCB/cloud deceleration; constant-currency cloud re-accelerated to +27%.
Watch: Q4 bookings/pipeline (management flagged strength), CCB trajectory into 2026, Business Data Cloud and AI attach rates, and the FY25 close (OP + FCF raised).