SAP focuses on cloud gains, touts agentic AI plan

Core Insights - SAP is focusing on cloud revenue growth through its cloud ERP suite and modernization programs like RISE and GROW, aiming to attract customers for system upgrades and SAP Business Suite services [3][4] - The company's cloud backlog increased by 23% year over year in Q3 2025, totaling $21.8 billion (18.8 billion euros), highlighting the critical importance of cloud business performance for SAP [4] - SAP's cloud revenue rose by 22% in Q3 2025, marking the fifth consecutive quarter of high cloud revenue increases, although it represents a decline from 24% growth in Q2 [6] Company Strategy - SAP plans to continue releasing AI agents and orchestrating a network of AI assistants to enhance business value across its value chain [5] - The company is collaborating with industry customers to co-develop AI assistants, which are envisioned to support functions like supply chain management [5][6] - SAP aims to accelerate total revenue growth through 2027, with AI being identified as a key enabler of this growth [6] Financial Performance - SAP reported total revenue of approximately $10.5 billion for Q3 2025, reflecting a 7% year-over-year increase, down from a 9% increase in Q2 [6] - Executives expressed confidence in a strong pipeline for Q4, which is expected to support the ambition for accelerating total revenue growth in 2026 [6]