SAP

SAP Q3 2025 Earnings

Reported Oct 27, 2025 at 7:00 AM ET · SEC Source

Q3 25 EPS

$1.59

MISS 3.05%

Est. $1.64

Q3 25 Revenue

$9.08B

vs S&P Since Q3 25

-42.3%

TRAILING MARKET

SAP -37.1% vs S&P +5.2%

Market Reaction

Did SAP Beat Earnings? Q3 2025 Results

SAP posted a mixed third quarter for fiscal 2025, with bottom-line results falling just short of expectations even as the company's cloud transformation accelerated meaningfully. The German enterprise software giant reported earnings per share of $1.… Read more SAP posted a mixed third quarter for fiscal 2025, with bottom-line results falling just short of expectations even as the company's cloud transformation accelerated meaningfully. The German enterprise software giant reported earnings per share of $1.59, missing the $1.64 consensus estimate by 3.05%, while revenue climbed 7.2% year over year to $9.08 billion. The headline EPS shortfall was partly attributed to a $98.00 million tax litigation charge and roughly $100.00 million in workforce transformation costs, both of which weighed on an otherwise operationally strong quarter. The standout driver was cloud momentum, with Cloud ERP Suite revenue growing 31% at constant currencies to $4.59 billion and the current cloud backlog reaching $18.84 billion, up 27%, signaling durable demand heading into year-end. SAP updated its 2025 outlook, now guiding cloud revenue toward the lower end of its $21.60 to $21.90 billion range, while raising free cash flow guidance to $8.00 to $8.20 billion; CEO Christian Klein expressed confidence in an accelerating total revenue growth trajectory into 2026, even as currency headwinds are expected to pressure Q4 cloud revenue growth by approximately 7 percentage points.

Key Takeaways

  • Cloud ERP Suite revenue growth of 31% at constant currencies driven by accelerated adoption across the Business Suite
  • Current cloud backlog of €18.84 billion up 27% at constant currencies signals sustained future growth
  • Share of more predictable revenue increased to 87%
  • Non-IFRS cloud gross margin improved 1.3 percentage points to 75.1%
  • Particularly strong cloud performance in APJ and EMEA regions
  • Outstanding performance in Brazil, France, Germany, India, Italy and South Korea
24/7 Wall St

SAP YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

24/7 Wall St

SAP Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 24 Q2 26
24/7 Wall St

SAP Revenue by Geography

With YoY comparisons, source: SEC Filings

Q4 24 Q2 26

“SAP delivered a great Q3 with strong cloud revenue growth of 27%. 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.”

— Christian Klein, Q3 2025 Earnings Press Release