SAP SE ADS (NYSE: SAP) Q2 2025 Earnings | 07/23/2025

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SAP SE reported its Q2 2025 results, delivering robust financial performance driven by accelerating cloud adoption, AI-driven innovation, and continued strength in its ERP portfolio. Total revenue for the quarter reached €9.03 billion, up 9% year-over-year (12% at constant currencies), fueled primarily by a surge in cloud revenue and expansion in strategic sectors. Cloud revenue rose 24% to €5.13 billion (28% at constant currencies), with the Cloud ERP Suite specifically growing 30% and underlining SAP’s position as a market leader in enterprise digital transformation. Current cloud backlog rose 22% to €18.1 billion, and the proportion of recurring, predictable revenue climbed to 86% of total, marking another significant step in SAP’s business model transformation. Profitability also advanced sharply, with non-IFRS operating profit up 32% to €2.57 billion, and non-IFRS operating margin expanding 5 points to 28.5%. IFRS operating profit rose to €2.46 billion, more than doubling from a year ago due to both revenue growth and lower restructuring costs following the completion of the 2024 transformation program. Basic IFRS earnings per share (EPS) climbed 91% to €1.45, while non-IFRS EPS was reported at €1.50, up 37% year-over-year. Free cash flow surged 83% to €2.36 billion for the quarter, reflecting higher profitability coupled with strong working capital management and lower one-off payments. Operationally, SAP highlighted strong demand across APJ and EMEA, with standout growth in markets such as India, Brazil, France, and Spain. Strategic partnerships and new customer wins—including in manufacturing, financial services, and the public sector—accelerated adoption of SAP’s cloud and AI offerings. The company’s AI assistant, Joule, and the SAP Business Data Cloud remained central to its customer value proposition, reinforcing the narrative that SAP is leading the enterprise transition to more AI-powered operations. Management reaffirmed its 2025 fiscal year guidance, citing a resilient backlog, healthy pipeline, and ongoing strength in cloud and software demand despite macro uncertainty and ongoing currency headwinds. About Inside Ticker: For more expert analysis and real-time updates on SAP SE (NYSE: SAP) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #SAP #SAPSE #Q22025 #Earnings #CloudSoftware #ERP #FinancialResults #RevenueGrowth #AI #Joule #BusinessDataCloud #FreeCashFlow #Profitability #StockMarket #OperationalExcellence #CloudBacklog #DigitalTransformation #ShareholderReturns #Guidance #InsideTicker #2025Outlook #EnterpriseSoftware #RecurringRevenue #Innovation #APAC #EMEA #SAPCloud #AITransformation #MarketLeadership