SAP

SAP Q4 2025 Earnings

Reported Feb 3, 2026 at 6:02 AM ET · SEC Source

Q4 25 EPS

$1.86

BEAT +7.95%

Est. $1.72

Q4 25 Revenue

$11.10B

vs S&P Since Q4 25

-24.6%

TRAILING MARKET

SAP -16.6% vs S&P +8.0%

Full Year 2025 Results

FY 25 EPS

$7.05

FY 25 Revenue

$42.18B

Market Reaction

Did SAP Beat Earnings? Q4 2025 Results

SAP closed out fiscal 2025 on a strong note, posting Q4 earnings per share of $1.86, a 7.95% beat against the $1.72 consensus estimate, while revenue climbed 3.3% year over year to $11.10 billion. The standout driver behind the beat was the relentles… Read more SAP closed out fiscal 2025 on a strong note, posting Q4 earnings per share of $1.86, a 7.95% beat against the $1.72 consensus estimate, while revenue climbed 3.3% year over year to $11.10 billion. The standout driver behind the beat was the relentless acceleration of SAP's cloud transformation, with the total cloud backlog reaching a record $88.59 billion, up 30% at constant currencies, and Cloud ERP Suite revenue growing 30% at constant currencies in the quarter. SAP Business AI, now embedded in two-thirds of Q4 cloud order entry, has evolved from an experimental feature into a tangible growth catalyst, drawing sustained attention from the buy side as the company deepens AI integration across its S/4HANA and Business Technology Platform portfolio. Non-IFRS operating margin expanded 3.2 percentage points to 29.2%, reflecting improving cloud gross margins and disciplined cost control. Looking ahead, SAP guided 2026 cloud revenue growth of 23-25% at constant currencies, with free cash flow of approximately $11.46 billion, signaling confidence in the durability of its transition-driven momentum.

Key Takeaways

  • Cloud ERP Suite revenue up 30% at constant currencies in Q4, driven by RISE with SAP adoption
  • SAP Business AI included in two-thirds of Q4 cloud order entry
  • Share of more predictable revenue increased to 84% in Q4 and 86% for full year
  • Non-IFRS cloud gross margin improved 1.1 percentage points to 74.6% in Q4
  • Lower restructuring payments and share-based compensation payouts boosted free cash flow
  • Strong cloud performance in APJ and EMEA regions in Q4
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SAP YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

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SAP Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 24 Q1 26
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SAP Revenue by Geography

With YoY comparisons, source: SEC Filings

Q4 24 Q1 26

“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.”

— Christian Klein, Q4 2025 Earnings Press Release