Companies /Technology

Sap SE

NYSE: SAP Software - Application
$209.69
▼ $2.35 (−1.11%) today
Markets closed · 8:33am ET

Q4 2025 Earnings

Reported Feb 3, 2026, 6:02am ET · SEC source
$1.86
Beat +7.95%
EPS · est. $1.72
$11.1B
Miss +0.00%
Revenue · est. $0
+5.0%
Beating market
SAP vs S&P since report
1 quarter
Consecutive EPS misses

Market Reaction

% change · around the report
−6%−3%0+3%Feb 3Feb 4report 6:02am ETearnings−1.4%−1.8%
−6%−3%0+3%Feb 3Feb 4earnings−1.4%−1.8%
SAP −1.8%S&P 500 −1.4%
−6%−3%0+3%Feb 3Feb 4report 6:02am ETearnings−3.6%−1.8%
−6%−3%0+3%Feb 3Feb 4earnings−3.6%−1.8%
SAP −1.8%NASDAQ −3.6%
−4%0+4%Feb 2Feb 11report 6:02am ETearnings−0.5%+2.7%
−4%0+4%Feb 2Feb 11earnings−0.5%+2.7%
SAP +2.7%S&P 500 −0.5%
−4%0+4%Feb 2Feb 11report 6:02am ETearnings−2.6%+2.7%
−4%0+4%Feb 2Feb 11earnings−2.6%+2.7%
SAP +2.7%NASDAQ −2.6%
−4.80%
Day of report
+1.21%
Next session
+7.56%
One week
+2.51%
30 days

S&P 500 over the same 30 days: −2.49%.

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 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

“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.”

SAP CEO, on the earnings call

Forward Guidance & Outlook

For 2026, SAP expects cloud revenue of €25.8–26.2 billion at constant currencies (up 23-25%), cloud and software revenue of €36.3–36.8 billion at constant currencies (up 12-13%), non-IFRS operating profit of €11.9–12.3 billion at constant currencies (up 14-18%), approximately €10 billion in free cash flow, a non-IFRS effective tax rate of approximately 29%, and constant currency current cloud backlog growth to slightly decelerate. SAP further expects constant currency total revenue growth to accelerate through 2027, with total operating expenses growing at 80-90% of total revenue growth in 2027. Currency headwinds assuming December 31, 2025 rates would reduce FY2026 cloud revenue growth by approximately 3.0 percentage points and non-IFRS operating profit growth by approximately 3.5 percentage points.

SAP YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$4.0B$8.0B$12.0B$10.7B$11.1BRevenue$8.0B$8.1BGross Profit$2.3B$2.9BOperating Income$1.8B$2.2BNet Income
$0$4.0B$8.0B$12.0BRevenueGross ProfitOperating IncomeNet Income

SAP Revenue by Segment

Applications, Technology & Support (ATS)
Cloud$6.4B+19.0%
SaaS/PaaS$6.3B+21.0%
Cloud ERP Suite$5.6B+23.0%
Software support$2.9B−11.0%
Software Support
Core Services
Services$1.2B−4.0%

SAP Revenue by Geography

EMEA$5.3B+4.0%
Americas$4.3B+2.0%
United States$3.4B+0.0%
Germany$1.8B+2.0%
Asia Pacific$1.6B+3.0%
Japan$450.5M+6.0%

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