SAP Q4 2025 cloud revenue rises 19% to $6.7bn

Core Insights - SAP reported a 19% increase in cloud revenue for Q4 2025, reaching €5.61bn ($6.69bn), compared to €4.71bn ($5.61bn) in Q4 2024 [1] - Total revenue for Q4 2025 increased by 3% to €9.68bn, up from €9.37bn in the same period last year [1] - Net income for Q4 2025 rose by 17% to €1.89bn, compared to €1.61bn in Q4 2024 [1] Full Year Performance - For the full year 2025, net income more than doubled to €7.49bn from €3.15bn in 2024 [2] - IFRS operating profit increased by 111% to €9.83bn, while total revenue climbed by 8% to €36.8bn, compared to €34.18bn in 2024 [2] - Total cloud backlog increased by 22% to €77.29bn, with a 30% rise when adjusted for constant currencies [2] Cloud Revenue Growth - Full year cloud revenue increased by 23% to €21.02bn, or 26% at constant currencies [3] - Cloud ERP Suite saw a 28% growth, amounting to €18.12bn, and a 32% increase at constant currencies [3] - Subscription revenue rose by 22% to €21.33bn, with a 26% increase at constant currencies, while software licenses revenue declined by 29% to €990m [3] Revenue Breakdown - Cloud and software revenue increased by 9% to €32.54bn, or 12% at constant currencies [4] - Services revenue decreased by 2% to €4.26bn, though it showed a 1% increase at constant currencies [4] - SAP projects cloud revenue growth of 23% to 25% for 2026, expecting to reach €25.8bn to €26.2bn [4] Strategic Initiatives - CEO Christian Klein highlighted that the growth in Current Cloud Backlog in Q4 sets a strong foundation for revenue growth through 2027 [5] - SAP Business AI has become a key growth driver, included in two-thirds of Q4 cloud order entries [5] - The "RISE with SAP" initiative attracted major global customers, focusing on comprehensive business transformations [5] Customer Adoption and Regional Performance - Companies like Lockheed Martin and Rolls-Royce SMR implemented SAP S/4HANA Cloud, while KPMG and Snowflake adopted "GROW with SAP" [6] - Key customer wins included Deutsche Bundesbank and Mondelez International [6] - SAP's cloud revenue excelled in regions like APJ and EMEA, with strong performances in Brazil, Germany, and the UK [6] Collaborations and Innovations - Collaborations with Snowflake and France's AI sector were announced, alongside the launch of the EU AI Cloud for enhanced digital sovereignty [7]