January 29, 2026
Q4 and Full Year 2025 Results
Christian Klein, CEO
“Q4 was a strong cloud quarter, with bookings resulting in 30% Total Cloud Backlog growth to a record 77 billion Euros. The significant Current Cloud Backlog growth in Q4 has laid a strong foundation for accelerating Total Revenue growth through 2027. SAP Business AI has become a main driver for growth as it was included in two thirds of our Q4 cloud order entry, combined with strong AI adoption across the ERP Suite.”
Dominik Asam, CFO
“We closed 2025 on a high note, delivering strong operating profit and free cash flow ahead of our expectations. This performance reflects focused execution, financial discipline, and the continued trust our customers place in us as the North Star for their digital transformation. As evidenced by continued strong growth well ahead of the market in SaaS and PaaS, and our ability to bring such growth down to the bottom line and Free Cash Flow, we are confident that our strategy and operational discipline will continue to drive long-term value creation.”
At a Glance
SAP meets revenue and exceeds non-IFRS operating profit and free cash flow outlook for FY2025
Total cloud backlog up 22% and up 30% at constant currencies
Current cloud backlog up 16% and up 25% at constant currencies
Cloud revenue up 23% and up 26% at constant currencies in FY2025
Cloud ERP Suite revenue up 28% and up 32% at constant currencies in FY2025
Total revenue up 8% and up 11% at constant currencies in FY2025
IFRS operating profit up 111%, non-IFRS operating profit up 28% and up 31% at constant currencies in FY2025
SAP announces a new, two-year share repurchase program with a volume of up to €10 billion
Documents and Links
Media Coverage
January 29, 2026
"The company enters 2026 with strong momentum as AI becomes a core element of nearly every cloud deal.”
CEO Christian Klein in an interview with Bloomberg TV.
January 29, 2026
“The good news is that we’re outperforming our competitors.”
CFO Dominik Asam reflects on the Q4 results on CNBC TV.
Financial Performance
Group results at a glance – Fourth quarter 2025
| IFRS | Non-IFRS1 | ||||||
| € million, unless otherwise stated | Q4 2025 | Q4 2024 | ∆ in % | Q4 2025 | Q4 2024 | ∆ in % | ∆ in % const. curr. |
| SaaS/PaaS | 5,532 | 4,585 | 21 | 5,532 | 4,585 | 21 | 27 |
| Thereof Cloud ERP Suite2 | 4,862 | 3,948 | 23 | 4,862 | 3,948 | 23 | 30 |
| Thereof Extension Suite3 | 670 | 636 | 5 | 670 | 636 | 5 | 10 |
| IaaS4 | 78 | 123 | −37 | 78 | 123 | −37 | −33 |
| Cloud revenue | 5,610 | 4,708 | 19 | 5,610 | 4,708 | 19 | 26 |
| Cloud and software revenue | 8,618 | 8,267 | 4 | 8,618 | 8,267 | 4 | 10 |
| Total revenue | 9,684 | 9,377 | 3 | 9,684 | 9,377 | 3 | 9 |
| Share of more predictable revenue (in %) | 84 | 81 | 3pp | 84 | 81 | 3pp | |
| Cloud gross profit | 4,106 | 3,429 | 20 | 4,185 | 3,458 | 21 | 27 |
| Gross profit | 7,044 | 6,943 | 1 | 7,175 | 6,972 | 3 | 8 |
| Operating profit (loss) | 2,554 | 2,016 | 27 | 2,829 | 2,436 | 16 | 21 |
| Profit (loss) after tax | 1,896 | 1,616 | 17 | 1,896 | 1,619 | 17 | |
| Earnings per share - Basic (in €) | 1.58 | 1.37 | 15 | 1.62 | 1.40 | 16 | |
| Net cash flows from operating activities | 1,297 | −584 | NA | ||||
| Free cash flow | 1,034 | −908 | NA | ||||
1 For a breakdown of the individual adjustments see table “Non-IFRS Operating Expense Adjustments by Functional Areas” in this Quarterly Statement.
2 Cloud ERP Suite references the portfolio of strategic Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) solutions that are tightly integrated with our core ERP solutions and are included in key commercial packages, such as RISE with SAP. Further, Cloud ERP Suite also includes cloud-based capabilities enabling our customers’ ERP landscapes and their cloud transformation. The following offerings contribute to Cloud ERP Suite revenue: SAP Cloud ERP, SAP Business Technology Platform, financial- and spend management, supply chain management, core solutions for human capital management, commerce, business transformation management and AI.
3 Extension Suite references SAP’s remaining SaaS and PaaS solutions that supplement and extend the functional coverage of the Cloud ERP Suite.
4 Infrastructure as a service (IaaS): The major portion of IaaS comes from SAP HANA Enterprise Cloud.
Group results at a glance – Full year 2025
| IFRS | Non-IFRS1 | ||||||
| € million, unless otherwise stated | Q1–Q4 2025 | Q1-Q4 2024 | ∆ in % | Q1–Q4 2025 | Q1-Q4 2024 | ∆ in % | ∆ in % const. curr. |
| SaaS/PaaS | 20,678 | 16,601 | 25 | 20,678 | 16,601 | 25 | 28 |
| Thereof Cloud ERP Suite revenue2 | 18,119 | 14,165 | 28 | 18,119 | 14,165 | 28 | 32 |
| Thereof Extension Suite revenue3 | 2,559 | 2,436 | 5 | 2,559 | 2,436 | 5 | 8 |
| IaaS4 | 345 | 540 | −36 | 345 | 540 | −36 | −34 |
| Cloud revenue | 21,023 | 17,141 | 23 | 21,023 | 17,141 | 23 | 26 |
| Cloud and software revenue | 32,538 | 29,830 | 9 | 32,538 | 29,830 | 9 | 12 |
| Total revenue | 36,800 | 34,176 | 8 | 36,800 | 34,176 | 8 | 11 |
| Share of more predictable revenue (in %) | 86 | 83 | 3pp | 86 | 83 | 3pp | |
| Cloud gross profit | 15,607 | 12,481 | 25 | 15,757 | 12,559 | 25 | 29 |
| Gross profit | 26,942 | 24,932 | 8 | 27,145 | 25,011 | 9 | 11 |
| Operating profit (loss) | 9,830 | 4,665 | >100 | 10,419 | 8,153 | 28 | 31 |
| Profit (loss) after tax | 7,492 | 3,150 | >100 | 7,176 | 5,279 | 36 | |
| Earnings per share - Basic (in €) | 6.28 | 2.68 | >100 | 6.15 | 4.53 | 36 | |
| Net cash flows from operating activities | 9,156 | 5,207 | 76 | ||||
| Free cash flow | 8,239 | 4,222 | 95 | ||||
1 For a breakdown of the individual adjustments see table “Non-IFRS Operating Expense Adjustments by Functional Areas” in this Quarterly Statement.
2 Cloud ERP Suite references the portfolio of strategic Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) solutions that are tightly integrated with our core ERP solutions and are included in key commercial packages, such as RISE with SAP. Further, Cloud ERP Suite also includes cloud-based capabilities enabling our customers’ ERP landscapes and their cloud transformation. The following offerings contribute to Cloud ERP Suite revenue: SAP Cloud ERP, SAP Business Technology Platform, financial- and spend management, supply chain management, core solutions for human capital management, commerce, business transformation management and AI.
3 Extension Suite references SAP’s remaining SaaS and PaaS solutions that supplement and extend the functional coverage of the Cloud ERP Suite.
4 Infrastructure as a service (IaaS): The major portion of IaaS comes from SAP HANA Enterprise Cloud.
Financial Highlights
Financial Highlights
Fourth Quarter 2025
In the fourth quarter, current cloud backlog grew by 16% to €21.05 billion and was up 25% at constant currencies. Large transformational deals with high cloud revenue ramps in outer years and termination for convenience clauses required by law negatively impacted fourth quarter constant currency current cloud backlog growth by approximately 1 percentage point.
Cloud revenue was up 19% to €5.61 billion and up 26% at constant currencies. Cloud ERP Suite revenue was up 23% to €4.86 billion and up 30% at constant currencies.
Software licenses revenue decreased by 34% to €0.45 billion and was down 31% at constant currencies. Cloud and software revenue was up 4% to €8.62 billion and up 10% at constant currencies. Services revenue was down 4% to €1.07 billion and flat at constant currencies. Total revenue was up 3% to €9.68 billion and up 9% at constant currencies.
The share of more predictable revenue increased by 3 percentage points to 84%.
IFRS cloud gross profit was up 20% to €4.11 billion. Non-IFRS cloud gross profit was up 21% to €4.18 billion and was up 27% at constant currencies. IFRS cloud gross margin was up 0.4 percentage points to 73.2%, non-IFRS cloud gross margin up 1.1 percentage points to 74.6% and up 0.9 percentage points at constant currencies to 74.3%.
IFRS operating profit increased 27% to €2.55 billion and IFRS operating margin was up 4.9 percentage points to 26.4%. Non-IFRS operating profit was up 16% to €2.83 billion and was up 21% at constant currencies. Non-IFRS operating margin increased by 3.2 percentage points to 29.2% and was up 3.0 percentage points to 29.0% at constant currencies. IFRS and non-IFRS operating profit growth were negatively impacted by approximately €0.1 billion related to a 2025 workforce transformation. In addition, IFRS operating profit growth was negatively impacted by approximately €0.2 billion related to Teradata litigation expenses (see section (N) Teradata Litigation Matter).
IFRS earnings per share (basic) increased 15% to €1.58. Non-IFRS earnings per share (basic) increased 16% to €1.62. IFRS effective tax rate was 31.5% and non-IFRS effective tax rate was 33.1%. Both were mainly driven by tax effects relating to taxes for prior years.
Operating cash flow in the fourth quarter increased from -€0.58 billion to €1.30 billion and free cash flow increased from -€0.91 billion to €1.03 billion. The increase was mainly attributable to lower restructuring payments and further supported by lower payouts for share-based compensation and capex.
Full Year 2025
SAP performed against its financial outlook as follows:
Actual 2024 | 2025 Outlook | Revised 2025 Outlook | Actual 2025 | |
|---|---|---|---|---|
Cloud revenue (at constant currencies) | €17.14 billion | €21.6 – 21.9 billion | €21.6 – 21.9 billion | €21.66 billion |
Cloud and software revenue (at constant currencies) | €29.83 billion | €33.1 – 33.6 billion | €33.1 – 33.6 billion | €33.44 billion |
Operating profit (non-IFRS, at constant currencies) | €8.15 billion | €10.3 – 10.6 billion | €10.3 – 10.6 billion | €10.66 billion |
Free cash flow | €4.22 billion | approx. €8 billion | €8.0 – 8.2 billion | €8.24 billion |
Effective tax rate (non-IFRS) | 32.3% | approx. 32% | approx. 32% | 30.4% |
Current cloud backlog (at constant currencies) | 29% | to slightly decelerate | to slightly decelerate | 25% |
As of December 31, total cloud backlog was up 22% to €77.29 billion and up 30% at constant currencies.
Cloud revenue for the full year was up 23% to €21.02 billion and up 26% at constant currencies. Cloud ERP Suite revenue was up 28% to €18.12 billion and up 32% at constant currencies. Subscription revenue1 was up 22% to €21.33 billion and up 26% at constant currencies. Software licenses revenue was down 29% to €0.99 billion and down 27% at constant currencies. Cloud and software revenue was up 9% to €32.54 billion and up 12% at constant currencies. Services revenue was down 2% to €4.26 billion and up 1% at constant currencies.
Total revenue was up 8% to €36.80 billion and up 11% at constant currencies.
The share of more predictable revenue increased by 3 percentage points year over year to 86% for the full year 2025.
IFRS cloud gross profit was up 25% to €15.61 billion. Non-IFRS cloud gross profit was up 25% to €15.76 billion and was up 29% at constant currencies. IFRS cloud gross margin was up 1.4 percentage points to 74.2%, non-IFRS cloud gross margin up 1.7 percentage points to 75.0% and up 1.6 percentage points at constant currencies.
IFRS operating profit was up 111% to €9.83 billion and IFRS operating margin increased by 13.1 percentage points to 26.7%. IFRS operating profit growth was positively impacted by a restructuring expense decline of approximately €3.1 billion as compared to full year 2024 in connection with the 2024 transformation program and negatively impacted by approximately €0.2 billion related to Teradata litigation expenses (see section (N) Teradata Litigation Matter). Non-IFRS operating profit increased by 28% to €10.42 billion and increased by 31% at constant currencies, non-IFRS operating margin increased by 4.5 percentage points to 28.3% and was up 4.3 percentage points to 28.2% at constant currencies.
IFRS and non-IFRS operating profit growth were negatively impacted by approximately €0.1 billion as a result of a change in case law that affected SAP's other tax litigation as well as approximately €0.2 billion related to a 2025 workforce transformation.
IFRS earnings per share (basic) increased by 135% to €6.28 and non-IFRS earnings per share (basic) increased 36% to €6.15. IFRS effective tax rate was 28.5% and non-IFRS effective tax rate was 30.4%. The IFRS effective tax rate is lower than the non-IFRS effective tax rate due to tax benefits from tax-exempt income.
For the full year, operating cash flow was up 76% to €9.16 billion and free cash flow increased by 95% to €8.24 billion. The increase was mainly attributable to higher profitability and to lower payments for restructuring and share-based compensation. At year end, net liquidity was €3.38 billion.
Non-Financial Performance 2025
In 2025, our Customer NPS decreased 3 points year over year to 9 (2024: 12), which is below our target range of 12 to 16. The decrease was driven primarily by lower NPS scores from on-premise customers who have yet to transition to cloud. Overall NPS scores for cloud-oriented customers remained steady year over year, while increasing in the enterprise segment.
The Employee Engagement Index for the full year 2025 increased 2 percentage points year over year to 76% (2024: 74%), at the midpoint of the target range of 74% to 78%.
The Business Health Culture Index increased one percentage point to 81% (2024: 80%), at the midpoint of the target range of 80% to 82%.
Total carbon emissions decreased to 6.3 Mt in 2025 (2024: 6.9 Mt), in line with our guidance for a steady decrease across the relevant value chain.
New Share Repurchase Program
Following SAP’s strong free cash flow generation, the Executive Board and the Supervisory Board have authorized a new share repurchase program with a volume of up to €10 billion. It is scheduled to start in February 2026 and expected to be completed by the end of 2027. The program will be implemented based on the authorization granted by the Annual General Meeting of SAP SE on May 11, 2023, and in compliance with the restrictions set forth therein.
The new share repurchase program follows SAP’s 2020, 2022 and 2023-2025 repurchases of around 56 million shares for about €8.0 billion.
2024 Transformation Program: Focus on scalability of operations and key strategic growth areas
In January 2024, SAP announced a company-wide restructuring program which concluded as planned in the first quarter 2025. Overall expenses associated with the program were approximately €3.2 billion. Restructuring payouts amounted to €2.5 billion for the full-year 2024 and €0.8 billion for the full year 2025.
1The subscription revenue measure is the sum of cloud revenue and revenue from time-based on-premise software licenses, which allow our customers to use our software for a specific, predefined period, and the associated software support. Revenue from time-based on-premise licenses is recognized at a point in time, whereas revenue from the associated software support is recognized over time.
Business Highlights
Business Highlights
In the fourth quarter, customers around the globe continued to choose the “RISE with SAP” journey to drive their end-to-end business transformations. These customers included: A2A, adidas, Bertelsmann, BioNTech, Daimler Truck, Deloitte, Électricité de France, Ferring Pharmaceuticals, Fresenius Digital Technology, Galenica, H&M Group, His Majesty’s Revenue & Customs, Jabil, KEBA Group, Kirin Holdings, Nokia, Pirelli, RTX, s.Oliver Group, Sigma Healthcare, Sun Chemical, Tokio Marine & Nichido Fire Insurance, Toyota, Ultragaz, and Weir Group.
Dexco, Lockheed Martin, Rolls-Royce SMR, and SA Power Networks went live on SAP S/4HANA Cloud in the fourth quarter.
A. Darbo, BSI, FUNKE Media Group, KPMG, Müller Holding, and Snowflake chose “GROW with SAP”, a journey helping customers adopt cloud ERP with speed, predictability, and continuous innovation.
Key customer wins across SAP’s solution portfolio included: Bank of Italy, Coop, Deutsche Bundesbank, Hilti, Marubeni IT Solutions, Mondelez International, Robert Bosch, Schaeffler Group, Tech Mahindra, XXXLutz, Zalando, and Zespri Group.
Fressnapf, Globe, Origin Energy, Sartorius, and WATERALIA went live on SAP solutions.
In the fourth quarter, SAP’s cloud revenue performance was particularly strong in APJ and EMEA and solid in the Americas region. Brazil, Canada, Germany, India, Italy, South Korea, Spain and the United Kingdom had outstanding performance, while Australia, Japan, Mexico, Saudi Arabia, Singapore and the U.S. were particularly strong.
For the full year, Brazil, France, Germany, India, Italy, South Korea and Spain all had outstanding performances in cloud revenue while China, Japan, Saudi Arabia, the United Kingdom and the U.S. were particularly strong.
On November 4, SAP and Snowflake announced a new collaboration to enable organizations to leverage Snowflake’s AI Data Cloud and SAP Business Data Cloud (SAP BDC) together with semantically rich data.
On November 14, SAP reaffirmed its commitment to fair competition amid EU review.
On November 18, SAP announced a new collaboration with France’s AI sector, which includes new and expanded partnerships with Bleu, Capgemini and Mistral AI.
On November 27, SAP announced the next stage of its vision for European digital sovereignty with the launch of EU AI Cloud. SAP now offers a truly full-stack sovereign cloud offering, empowering customers to select the right level of sovereignty and deployment for their needs, whether in SAP’s own data centers, on trusted European infrastructure or as a fully managed solution on-site.
Business Outlook
Outlook 2026
Financial Outlook 2026
For 2026, SAP expects:
€25.8 – 26.2 billion cloud revenue at constant currencies (2025: €21.02 billion), up 23% to 25% at constant currencies.
€36.3 – 36.8 billion cloud and software revenue at constant currencies (2025: €32.54 billion), up 12% to 13% at constant currencies.
€11.9 – 12.3 billion non-IFRS operating profit at constant currencies (2025: €10.42 billion), up 14% to 18% at constant currencies.
Approximately €10 billion free cash flow at actual currencies (2025: €8.24 billion).
An effective tax rate (non-IFRS) of approximately 29% (2025: 30.4%)2.
Constant currency current cloud backlog growth to slightly decelerate in 2026 (2025: 25%).
SAP further expects:
Constant currency total revenue growth to accelerate through 2027.
Total operating expenses to grow at 80% to 90% of total revenue growth in 2027.
Constant currency software support revenue decline rate to accelerate in the coming years as a consequence of an acceleration of customers transforming to the cloud.
While SAP’s 2026 financial outlook for the income statement parameters is at constant currencies (including an average exchange rate of 1.13 USD per EUR), actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the company progresses through the year, as reflected in the table below.
Currency Impact Assuming December 31, 2025 Rates Apply for 2026
| In percentage points | Q1 2026 | FY 2026 |
| Cloud revenue growth | –8.0pp | –3.0pp |
| Cloud and software revenue growth | –7.0pp | –2.5pp |
| Operating profit growth (non-IFRS) | –8.0pp | –3.5pp |
This includes an exchange rate of 1.18 USD per EUR.
Non-Financial Outlook 2026
For 2026, SAP expects:
Cloud Customer Satisfaction3 (Cloud CSAT) to be in a range of 75% to 76% (2025: 75%).
The Employee Engagement Index to be in a range of 74% to 78% (2025: 76%).
The Business Health Culture Index (BHCI) to be in a range of 80% to 82% (2025: 81%).
To steadily decrease carbon emissions 4 across the relevant value chain (2025: 3.5 Mt).
2The effective tax rate (non-IFRS) is a non-IFRS financial measure and is presented for supplemental informational purposes only. We do not provide an outlook for the effective tax rate (IFRS) due to the uncertainty and potential variability of gains and losses associated with equity securities, which are reconciling items between the two effective tax rates (non-IFRS and IFRS). These items cannot be provided without unreasonable efforts but could have a significant impact on our future effective tax rate (IFRS).
3For 2026 and onward, SAP is adopting Cloud Customer Satisfaction (Cloud CSAT) as its new customer experience KPI, as this metric better aligns to SAP’s cloud-first strategy. For more information, see the Other Disclosures section.
4 In 2026, we will update the calculation methodology for the Use of Sold Products KPI, to a forward-looking approach that considers the estimated emissions during the lifetime of all new systems sold within a specific period. This change results in a significant decrease in reported emissions and therefore leads to a rebaselining according to the GHG-Protocol. For more information, see the Other Disclosures section.