To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Fourth Quarter and Full-Year 2025 Results Christian Klein, CEO Dominik Asam, CFO January 29, 2026 Public Fourth Quarter and Full-Year 2025 Results Presentation | January 29, 2026 Safe Harbor Statement During this presentation we will make forward-looking statements which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes t ...

Core Insights - The business-software group achieved total revenue of €36.8 billion euros in 2025, reflecting an 11% increase at constant currencies [1] Financial Performance - Total revenue for the year 2025 was €36.8 billion euros [1] - The revenue growth rate was 11% when adjusted for constant currencies [1]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Core Viewpoint - SAP reported fourth-quarter revenue that met market estimates, indicating resilient demand for its cloud software and services despite a cooling global economy [1] Group 1: Financial Performance - The fourth-quarter revenue performance aligns with market expectations, suggesting stability in enterprise spending [1] - Demand for cloud software and services remains strong, reflecting ongoing investment in technology by enterprises [1] Group 2: Market Context - The results indicate that enterprise spending is holding up even as the global economy shows signs of cooling [1]

Core Insights - SAP SE reported strong financial results for Q4 and FY2025, highlighting significant growth in cloud services and overall revenue [1][5][17] Financial Performance - Q4 2025 total revenue increased by 3% to €9.68 billion, with a 9% increase at constant currencies [4][11] - Full year 2025 total revenue rose by 8% to €36.80 billion, with an 11% increase at constant currencies [7][17] - Cloud revenue for Q4 grew by 19% to €5.61 billion, and for the full year, it increased by 23% to €21.02 billion [11][17] - The Cloud ERP Suite revenue in Q4 was up 23% to €4.86 billion, and for the full year, it rose by 28% to €18.12 billion [11][17] - Operating profit for Q4 increased by 27% to €2.55 billion, while for the full year, it surged by 111% to €9.83 billion [13][18] - Free cash flow for Q4 was €1.03 billion, a significant recovery from a loss in the previous year, and for the full year, it increased by 95% to €8.24 billion [15][20] Cloud Backlog and Growth - Total cloud backlog reached €77.29 billion, up 22% year-over-year, and 30% at constant currencies [5][32] - Current cloud backlog grew by 16% to €21.05 billion in Q4, with a 25% increase at constant currencies [10][32] Shareholder Returns - SAP announced a new share repurchase program of up to €10 billion, set to begin in February 2026 [23][24] Customer Engagement and Market Position - SAP's "RISE with SAP" initiative continues to attract global customers, driving significant business transformations [25][26] - The company reported strong cloud revenue performance across various regions, particularly in APJ and EMEA [28][29] Non-Financial Performance - Customer NPS decreased by 3 points to 9, primarily due to lower scores from on-premise customers [21] - Employee Engagement Index increased to 76%, and total carbon emissions decreased to 6.3 Mt [22]

SAP's S/4HANA Public Cloud is its standardized solution for scalable, international business processes. ADS-TEC Energy now uses this platform to map complex operations on a unified, future-proofed system. NÜRTINGEN, Germany--(BUSINESS WIRE)--ADS-TEC Energy PLC (NASDAQ: ADSE) has successfully gone live with a new SAP cloud-based IT platform to support its continued business growth and to support scaling internationally. By unifying processes and providing fast access to data, the new solution enhances operat ...

Core Insights - BizClik has launched the January editions of its Procurement & Supply Chain portfolio, featuring insights from various publications [1][10] - The editions focus on global leaders, breakthrough technologies, and strategies for enhancing resilience, visibility, and traceability in supply chains [2] Procurement Magazine Highlights - The cover feature discusses SAP's strategic approach to AI [3] - A company feature highlights how Sarantis Group is optimizing third-party procurement [4] - The Top 10 rankings spotlight strategic sourcing leaders in the US [5] - Editorial highlights include discussions on integrating carbon accounting into procurement workflows and the importance of sustainable sourcing [7] Leadership Insights - Etosha Thurman from SAP emphasizes the need for procurement to prepare for disruptions [9] - Dimitris Antonopoulos from Sarantis Group discusses the benefits of integration for negotiation power and value creation [9] - Smitha Shetty from Achilles highlights the alignment of carbon insights with procurement decisions [9] Upcoming Events - BizClik is organizing the Procurement & Supply Chain LIVE: The Net Zero Summit, focusing on decarbonization in supply chains [11][12] - The event aims to gather over 2,000 attendees to discuss sustainability and its impact on procurement and supply chain practices [12] About BizClik - BizClik is a global B2B media and events company that produces content across various sectors, including technology, sustainability, and procurement [13]

Core Viewpoint - SAP SE is recognized as a significant player in the AI stock market, with HSBC initiating coverage and assigning a Hold rating with a price target of EUR178, indicating limited upside potential due to already reflected robust fundamentals and cloud-driven growth in the share price [1] Group 1: Financial Performance and Growth Projections - HSBC forecasts SAP's revenue to grow at a CAGR of 9.6% from 2025 to 2028, driven by the transition of customers from on-premise software to cloud solutions [2] - The firm estimates that 5% of on-premise customers will migrate to the cloud each year, which is an increase from the previous rate of approximately 4.5% from 2022 to 2025, resulting in a revenue uplift of around 2.5 times [2] Group 2: Market Dynamics and Customer Migration - Despite the positive outlook, HSBC cautions that the market may be overly optimistic regarding the speed of customer migration and its impact on revenues and margins, with 60% of SAP's on-premise customers yet to start their transition to the cloud [3] - Rising competition may cause delays in cloud upgrades, leading to passive growth in the current cloud backlog, prompting the firm to look for clearer signals in SAP's fourth-quarter 2025 results [4] Group 3: Competitive Landscape - SAP is a leader in ERP software, utilizing artificial intelligence to enhance its enterprise resource planning solutions, but faces challenges from increasing competition in the market [4]

Summary of Key Points from the Conference Call Industry Overview - The conference call focused on the software industry, particularly the impact of artificial intelligence (AI) on software companies and their business models [1][2]. Core Insights and Arguments 1. **Reliance on Existing Software Vendors** Companies prefer to rely on existing software vendors for AI feature upgrades and are willing to pay for these enhancements. There is no plan to replace current vendors, and spending continues to grow during contract renewals [1][2]. 2. **Focus on Time to Market** Companies aim to concentrate internal development resources on revenue growth and core business rather than redeveloping third-party applications. This indicates a strategic shift towards leveraging existing solutions [1][2]. 3. **Outsourcing Development and Maintenance** Businesses are dismissing the idea of developing software in-house and prefer to outsource responsibilities and risks to third-party vendors. Developer headcount remains unchanged despite the growing reliance on external solutions [2]. 4. **AI Monetization** The call highlighted that many companies are successfully monetizing additional AI features through new contracts and product SKUs. This trend is seen as a legitimate business rationale for increased spending [2][3][4][5]. 5. **SaaS Pricing Dynamics** The SaaS sector is evolving, with AI transforming simple functionalities into high-value productivity engines, justifying significant price increases for software products. For instance, a user expressed willingness to pay 50% more for a service due to the exponential utility of AI-generated content [5][19]. 6. **Challenges in Data Management** The complexity of managing vast amounts of data across various systems poses significant challenges. Companies face issues related to data governance, privacy, and integration, making it impractical to switch from established products [6][7][8][9]. 7. **Emergence of Claude Code** The transition towards tools like Claude Code is noted, where AI is taking on more coding responsibilities, potentially accelerating development processes. However, there are concerns about the reliability and effectiveness of such tools in large enterprise environments [10][11][12][13]. Additional Important Insights - **Market Sentiment** The overall sentiment in the software industry is cautious, with a belief that market emotions may have been overstretched. The hype around AI tools like Claude Code is nearing its peak, indicating a potential shift in market dynamics [14][15]. - **Growth Expectations** A recent Morgan Stanley CIO survey indicates an increase in growth expectations for the software industry from 2.4% in 2025 to 3.8% in 2026, surpassing growth rates in hardware and communication services [18]. - **Skepticism on Price Compression** There is skepticism regarding significant price compression in the software industry, as low-cost software already exists, and SaaS pricing is generally low. R&D spending as a percentage of revenue for CRM companies is around 25%, indicating a balanced investment approach [19]. Investment Strategy - The software industry is viewed as a potential buy in the short to medium term, with a focus on identifying individual stocks that present investment opportunities. The market is expected to experience volatility, leading to increased differentiation in stock performance [20].