Companies /Technology

Sap SE

NYSE: SAP Software - Application
$209.69
▼ $2.35 (−1.11%) today
Markets closed · 3:38am ET

Q2 2025 Earnings

Reported Jul 25, 2025, 6:01am ET · SEC source
$1.50
Miss −10.41%
EPS · est. $1.67
$9.0B
Miss −0.81%
Revenue · est. $9.1B
−4.1%
Trailing market
SAP vs S&P since report
1 quarter
Consecutive EPS misses

Market Reaction

% change · around the report
−0.3%0+0.3%+0.6%Jul 25Jul 25report 6:01am ETearnings+0.3%+0.5%
−0.3%0+0.3%+0.6%Jul 25Jul 25earnings+0.3%+0.5%
SAP +0.5%S&P 500 +0.3%
−0.3%0+0.3%+0.6%Jul 25Jul 25report 6:01am ETearnings+0.2%+0.5%
−0.3%0+0.3%+0.6%Jul 25Jul 25earnings+0.2%+0.5%
SAP +0.5%NASDAQ +0.2%
−2%0+2%Jul 24Aug 1report 6:01am ETearnings−2.2%−1.4%
−2%0+2%Jul 24Aug 1earnings−2.2%−1.4%
SAP −1.4%S&P 500 −2.2%
−2%0+2%Jul 24Aug 1report 6:01am ETearnings−2.1%−1.4%
−2%0+2%Jul 24Aug 1earnings−2.1%−1.4%
SAP −1.4%NASDAQ −2.1%
−1.96%
Day of report
+1.83%
Next session
+0.50%
One week
−2.57%
30 days

S&P 500 over the same 30 days: +1.52%.

Did SAP Beat Earnings? Q2 2025 Results

SAP delivered a mixed second quarter for 2025, posting earnings per share of $1.50 against a consensus estimate of $1.69, a miss of 11.24%, even as revenue climbed 8.9% year over year to $9.03 billion. <a href="https://247wallst.com/investing/2025/07/22/live-coverage-will-sap-stock-soar-after-reporting-q2-earnings/">Investors watching SAP closely</a> saw shares slip after the report, with currency headwinds and elongated sales cycles in U.S. public sector and industrial manufacturing, driven by global trade tensions, weighing on sentiment. The headline miss obscured genuine operational momentum: cloud revenue surged 24% to $5.13 billion, the current cloud backlog reached $18.05 billion, up 22%, and free cash flow jumped 83% to $2.36 billion for the quarter. Profitability also expanded sharply, with non-IFRS operating margin widening 5 percentage points to 28.5%, supported by the conclusion of SAP's 2024 restructuring program. AI adoption is accelerating, with roughly half of cloud order entry volume in the first half including SAP Business AI. Despite the macro uncertainty, SAP held its full-year outlook firm, targeting cloud revenue of $21.60 billion to $21.90 billion and free cash flow of approximately $8.00 billion.

Key Takeaways
  • Cloud ERP Suite revenue grew 30% (34% at constant currencies) to €4.42 billion
  • Non-IFRS operating margin expanded 5.0pp to 28.5%
  • Operational efficiencies from successful execution of 2024 transformation program
  • Lower share-based compensation expenses
  • Around 50% of cloud order entry volume in H1 2025 included SAP Business AI
  • Cloud revenue performance particularly strong in APJ and EMEA regions
  • Share of more predictable revenue increased to 86%

“We have delivered yet another quarter of outstanding results. AI innovations such as Joule becoming available "everywhere and for everything" and SAP Business Data Cloud as a powerful accelerator of AI make our portfolio ever stronger. Enterprise operations are about to enter a new era, and SAP is best positioned to benefit from that evolution.”

SAP CEO, on the earnings call

Forward Guidance & Outlook

SAP's 2025 outlook remains unchanged. The company expects: cloud revenue of €21.6–21.9 billion at constant currencies (up 26–28%); cloud and software revenue of €33.1–33.6 billion at constant currencies (up 11–13%); non-IFRS operating profit of €10.3–10.6 billion at constant currencies (up 26–30%); free cash flow of approximately €8.0 billion; and a non-IFRS effective tax rate of approximately 32%. Current cloud backlog growth at constant currencies is expected to slightly decelerate. Total revenue growth at constant currencies is expected to slightly accelerate. Currency headwinds are expected to reduce reported growth rates by 3.0–5.0 percentage points for Q3 and full-year figures assuming June 30 exchange rates. Beyond 2025, SAP expects total revenue growth to accelerate through 2027, driven by cloud revenue and Cloud ERP Suite, with operating expenses growing at 80–90% of revenue growth. Capital expenditures are expected at approximately €800 million for 2025 and €1,000 million for 2026.

SAP YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$3.0B$6.0B$9.0B$8.3B$9.0BRevenue$6.0B$6.6BGross Profit$1.2B$2.5BOperating Income$888.0M$1.7BNet Income
$0$3.0B$6.0B$9.0BRevenueGross ProfitOperating IncomeNet Income

SAP Revenue by Segment

Applications, Technology & Support (ATS)$16.1B
Cloud
SaaS/PaaS$5.0B+26.0%
Cloud ERP Suite$4.4B+30.0%
Software support
Software Support$2.6B−5.0%
Core Services$2.0B
Services$1.1B−5.0%

SAP Revenue by Geography

EMEA$4.2B+12.0%
Americas$3.6B+5.0%
United States$2.8B+5.0%
Germany$1.4B+10.0%
Asia Pacific$1.3B+12.0%
Japan$392.0M+16.0%

Figures from SEC filings and company reports. Not investment advice.