Core Insights - The collaboration between Snowflake and SAP aims to enhance industry collaboration and standardization through the Open Semantic Interchange initiative [3][4] - The integration allows SAP Business Data Cloud customers to access Snowflake's AI and data capabilities, while Snowflake customers can utilize SAP's data products [5][9] - SAP's cloud revenue increased by 22% in Q3 2025, indicating strong performance and a focus on AI agent development [7] Group 1 - The Open Semantic Interchange initiative seeks to create a vendor-neutral framework for sharing semantic metadata across platforms [3] - Major companies like BNY, Colgate-Palmolive, Walmart, and PepsiCo are implementing AI agents to enhance business objectives [4] - The integration is designed to simplify data sharing and enhance the development of AI applications [9] Group 2 - The partnership combines SAP's expertise in business applications with Snowflake's modern data platform to provide a unified experience [6] - The collaboration is expected to empower customers with greater openness and choice in data management [5] - Snowflake introduced new developer tools to assist enterprises in building and deploying AI applications [9]

Accessibility StatementSkip Navigation Innovations and partnerships including a new collaboration with Snowflake equip developers to turn business data and AI into real business outcomes BERLIN, Nov. 4, 2025 /PRNewswire/ --Â At SAP TechEd 2025, SAP SE (NYSE: SAP) brings AI deep into the development process to level up how developers build. New AI-driven capabilities in the SAP Build solution, an expanding data ecosystem and powerful Joule Agents empower developers to move from idea to impact with unpreceden ...

Financial Data and Key Metrics Changes - In Q3 2025, cloud revenue rose by 27%, maintaining over 25% growth for five consecutive quarters, with a solid cloud gross margin of approximately 75% [6][22] - Total revenue increased by 11% to €9.1 billion, with the share of predictable revenue rising by two percentage points to 87% [7][24] - Current cloud backlog increased by 27%, exceeding €18.8 billion [22] - Free cash flow increased by 5% to €1.3 billion, while operating profit rose by 19% to €2.6 billion [7][25] Business Line Data and Key Metrics Changes - The cloud ERP suite achieved its 15th consecutive quarter of growth exceeding 30%, representing 87% of cloud revenues and over 100% of the year-over-year increase in cloud revenues [20][22] - Software licenses revenue decreased by 42% in Q3 [23] Market Data and Key Metrics Changes - Cloud revenue performance was particularly strong in APJ and EMEA regions, with Brazil, France, Germany, India, Italy, and South Korea showing outstanding performance [24] - The U.S. public sector business is starting to pick up again, with a major framework contract awarded to SAP by the U.S. government [10][23] Company Strategy and Development Direction - The company aims to accelerate total revenue growth through 2027, leveraging AI as a key enabler of growth [5][19] - SAP's strategy focuses on providing software and cloud solutions without building infrastructure, partnering with strong cloud infrastructure partners instead [11][63] - The company is enhancing its AI capabilities, emphasizing the integration of AI with business processes and contextual data to create high-value use cases [12][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Q4 pipeline, noting that many stalled deals are now returning, particularly in the U.S. public sector and manufacturing [32][34] - The company anticipates reaching the lower end of its cloud revenue outlook for fiscal year 2025 due to delayed bookings but expects to exceed its operating profit outlook [26][25] Other Important Information - SAP closed its acquisition of SmartRecruiters, enhancing its capabilities in talent acquisition [22] - The company is seeing significant interest in its new software and cloud offerings for highly regulated customers and governments [12] Q&A Session Summary Question: Update on demand backdrop in U.S. public sector and manufacturing - Management noted positive early signs in the U.S. public sector and a strong Q4 pipeline, with many deals returning [32][34] Question: Insights on backlog and cloud revenue expectations - Management expressed confidence in achieving a good Q4 and picking up stalled pipeline deals, indicating optimism for cloud revenue growth [36][54] Question: Uptake of SAP ERP transition option - Management highlighted positive momentum in the pipeline and noted that the transition option is helping customers move to the cloud [40][41] Question: Competitive position versus Oracle - Management emphasized that SAP's strategy remains effective, focusing on value creation rather than infrastructure scaling [63][66] Question: Free cash flow guidance and conversion - Management indicated that Q4 free cash flow may be impacted by tax cash out phasing and other working capital factors [58][59]

Financial Data and Key Metrics Changes - In Q3 2025, cloud revenue rose by 27%, maintaining over 25% growth for five consecutive quarters, with a solid cloud gross margin of approximately 75% [6][22] - Total revenue increased by 11% to EUR 9.1 billion, with the share of predictable revenue rising by 2 percentage points to 87% [7][22] - Current cloud backlog increased by 27% to exceed EUR 18.8 billion [22] - Free cash flow increased by 5% to EUR 1.3 billion, while operating profit rose by 19% to EUR 2.6 billion [7][24] Business Line Data and Key Metrics Changes - The cloud ERP suite achieved its 15th consecutive quarter of growth exceeding 30%, representing 87% of cloud revenues and over 100% of the year-over-year increase in cloud revenues [20][22] - Software licenses revenue decreased by 42% in Q3 [23] Market Data and Key Metrics Changes - Cloud revenue performance was particularly strong in the APJ and EMEA regions, with Brazil, France, Germany, India, Italy, and South Korea showing outstanding performance [23] - The U.S. public sector business is starting to pick up again, with a major framework contract awarded to SAP by the U.S. Army [10][23] Company Strategy and Development Direction - The company aims to accelerate total revenue growth through 2027, leveraging AI as a key enabler for growth [5][19] - SAP's strategy focuses on providing software and cloud solutions without building infrastructure, partnering with cloud infrastructure providers instead [11][66] - The company is enhancing its AI capabilities by integrating AI into business processes and developing AI agents to automate and optimize operations [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Q4 pipeline, noting that many stalled deals are now progressing, particularly in the U.S. public sector and manufacturing [32][34] - The company anticipates reaching the lower end of its cloud revenue outlook for fiscal year 2025 due to delayed bookings but expects to exceed previous targets for free cash flow [26][25] Other Important Information - SAP closed its acquisition of SmartRecruiters, enhancing its capabilities in talent acquisition [22] - The company is focusing on high-value AI use cases, emphasizing the importance of combining large language models with business processes and contextual data [12][49] Q&A Session Summary Question: Update on demand backdrop and backlog - Management noted positive early signs in the U.S. public sector and manufacturing, with a strong Q4 pipeline [32][34] Question: Delay in backlog and cloud revenue expectations - Management expressed confidence in achieving a good Q4 and picking up stalled pipeline deals [36][54] Question: Uptake of SAP ERP transition option - Management indicated positive momentum in the pipeline, with high interest in the transition option [40][41] Question: Competitive position versus Oracle - Management emphasized the strength of SAP's software and cloud offerings, stating that their strategy is proven and effective [62][66] Question: Free cash flow guidance - Management highlighted that Q4 cash flow may be impacted by tax payments and working capital fluctuations, but remains confident in achieving the target [58][59]

Financial Data and Key Metrics Changes - In Q3, cloud revenue rose by 27%, marking five consecutive quarters of growth exceeding 25% [7][8] - Total revenue growth was 11%, with current cloud backlog increasing by 27% [8][30] - Free cash flow increased by 5%, while operating profit rose by 19% [8][34] - Total revenue reached EUR 9.1 billion, up 11%, with predictable revenue rising to 87% [33][34] Business Line Data and Key Metrics Changes - The Cloud ERP suite delivered 31% growth in Q3, representing 87% of cloud revenues [30] - Software licenses revenue decreased by 42% in Q3 [32] - Non-IFRS cloud gross margin expanded by 1.1 percentage points to 75.1% [34] Market Data and Key Metrics Changes - Cloud revenue performance was particularly strong in APJ and EMEA regions, with Brazil, France, Germany, India, Italy, and South Korea showing outstanding performance [33] - The U.S. public sector is showing early signs of improvement, with a major framework contract awarded to SAP by the U.S. Army [32][34] Company Strategy and Development Direction - The company aims to accelerate total revenue growth through 2027, leveraging AI as a key enabler [7][28] - SAP's strategy focuses on software and cloud solutions rather than building infrastructure, partnering with strong infrastructure partners instead [16][88] - The introduction of AI agents and tools is central to enhancing customer value and operational efficiency [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Q4 pipeline, indicating a strong recovery in the U.S. public sector and manufacturing [47][51] - The company anticipates reaching the lower end of its cloud revenue outlook for fiscal year 2025 due to delayed bookings [36][37] - Management remains optimistic about the potential for revenue acceleration in 2026, supported by a robust pipeline [77][78] Other Important Information - The acquisition of Smart Recruiters was completed, enhancing SAP's capabilities in talent acquisition [31] - The company is focusing on high-quality data and AI integration to drive business value [66][70] Q&A Session Summary Question: Update on demand backdrop in U.S. public sector and manufacturing - Management noted positive early signs in the U.S. public sector and a strong Q4 pipeline, indicating a recovery in these sectors [45][47] Question: Insights on backlog and cloud revenue expectations - Management expressed confidence in the Q4 pipeline and the potential for a better exit rate for CCB growth than previously expected [51][52] Question: Uptake of SAP ERP transition options - Management indicated positive momentum in the pipeline and high interest in the transition options, with expectations for initial deals in Q4 [54][58] Question: Competitive position versus Oracle - Management emphasized the strength of SAP's strategy and the value provided to customers, asserting that the current approach is effective [86][88] Question: Free cash flow guidance and conversion - Management highlighted the impact of tax cash out phasing and working capital dynamics on free cash flow expectations for Q4 [80][84]

Core Insights - SAP SE is set to release its third-quarter 2025 results on October 22, with earnings expected to be $1.69 per share, reflecting a 25.2% increase year-over-year, and revenues projected at $10.6 billion, indicating a 13.5% rise from the previous year [1] Financial Performance - SAP has consistently surpassed the Zacks Consensus Estimate for earnings in the last four quarters, achieving an average earnings beat of 7%. The company's shares have increased by 18.9% over the past year, compared to a 20.6% growth in the Computers - Software industry [2] Growth Drivers - The anticipated strong performance in the third quarter is attributed to the growth of SAP's Cloud ERP business and effective expense management. The Rise with SAP and Grow with SAP initiatives have significantly contributed to a 24% increase in cloud revenue on a non-IFRS basis, with the Cloud ERP Suite growing over 30% for 14 consecutive quarters [3][9] - Operating profit surged by 32%, driven by improved cost management and productivity enhancements [3] Strategic Focus - SAP's growth strategy is built on four pillars: product innovation, go-to-market transformation, simplification, and talent development. The company is leveraging AI to transform business processes and enhance operational efficiency, aiming for sustained growth through 2027 [4] - The SAP Business Data Cloud is designed to unify enterprise data and support AI applications with reliable information [4] AI Integration - Management expects accelerated adoption of Business AI, having launched 14 AI agents in the first half of 2025, with plans to expand to 40 agents by year-end. Internally, SAP utilizes AI to enhance productivity, which supports strong operating profit growth [5] - The AI co-pilot Joule has integrated over 1,300 skills and covers 80% of business and analytical transactions as of the end of 2024. Starting from the third quarter, Joule is accessible across both SAP and non-SAP systems [5] Financial Health - SAP's robust cash flow enables investments in innovation, acquisitions, and business growth while maintaining dividends. The company has solid free cash flow and reserves to sustain a dividend of $0.30 in the near term [6] Market Outlook - Despite a strong performance, SAP remains cautious about the macroeconomic environment, particularly regarding geopolitical developments and trade policy uncertainties that may affect sales cycles in the U.S. public sector and manufacturing [7][10]

Summary of SAP Connect Virtual Conference Highlights Company and Industry - **Company**: SAP (NYSE: SAP) - **Industry**: Enterprise Software and Cloud Solutions Core Points and Arguments 1. **AI-Driven Innovation**: SAP highlighted five patterns of AI-driven innovation, including embedded AI, agent-driven autonomous execution, AI-native applications, appless experiences, and a new conversational AI-driven engagement layer called Gen UI [10][12][14] 2. **Collaboration and Integration**: Emphasis on breaking down silos within organizations through the SAP Business Suite, enabling proactive collaboration across functions [11][21] 3. **AI in the Workplace**: 44% of workplaces report using AI tools, but only 20% of employees understand how to apply them, indicating a need for SAP's role in integrating AI into business processes [14][15] 4. **Human-AI Partnership**: The future of work is seen as a partnership between humans and AI, where AI enhances human creativity and decision-making rather than replacing it [15][16][17] 5. **SAP Joule AI Assistants**: Introduction of various AI assistants tailored for specific roles within organizations, aimed at reducing administrative burdens and enhancing productivity [17][18] 6. **Productivity Gains**: Industries most exposed to AI are experiencing a four-fold increase in productivity growth, particularly in smaller and mid-sized organizations [19] 7. **Customer Experience Focus**: Three main themes from the conference were dealing with uncertainty, evolving workforce, and customer centricity, highlighting the importance of a seamless customer experience [25][26] 8. **SAP Business Data Cloud**: This platform is crucial for unifying data across processes, enhancing customer experience, and supporting AI agents [32][34] 9. **Supply Chain Innovations**: Launch of SAP Supply Chain Orchestration to manage disruptions and improve resilience in supply chains, alongside new products like Logistics Management and IBP Reimagined [78][79] 10. **Next-Gen SAP Ariba**: Introduction of next-generation procurement solutions that integrate AI capabilities to enhance efficiency and effectiveness in sourcing and procurement processes [115][121] Other Important Content 1. **Customer Engagement**: SAP Engagement Cloud aims to unify customer interactions across various touchpoints, enhancing personalization and context in customer journeys [23][36] 2. **Workforce Management**: SAP SuccessFactors is integrating AI advancements to prepare workforces for future challenges, including the introduction of multiple AI assistants for HR tasks [49][50] 3. **Acquisition of SmartRecruiters**: This acquisition is expected to enhance SAP's talent acquisition capabilities, integrating seamlessly with SAP SuccessFactors [56][67] 4. **Experience Center**: The SAP Experience Center showcases how SAP Business Suite integrates data, AI, and applications across various industries, emphasizing the importance of a future-ready workforce [88][91] 5. **Real-Time Insights**: SAP's solutions are designed to provide real-time insights and analytics, enabling organizations to make informed decisions quickly [93][94] This summary encapsulates the key themes and innovations presented during the SAP Connect Virtual Conference, focusing on the integration of AI, customer experience, and supply chain management within the SAP ecosystem.

Core Insights - SAP SE has completed the acquisition of SmartRecruiters, aiming to enhance talent acquisition through AI-driven efficiency and innovation [1][10] - The integration of SmartRecruiters' platform with SAP SuccessFactors is expected to improve hiring processes and workforce planning insights [3][10] Group 1: Acquisition and Integration - The acquisition of SmartRecruiters is intended to empower enterprises by streamlining talent acquisition processes [1] - SmartRecruiters offers an AI-native platform that enhances efficiency and streamlines hiring, focusing on both high-volume frontline hiring and enterprise-level recruiting [2] - For SAP SuccessFactors users, SmartRecruiters' innovations will be incorporated to improve features like time-to-hire and candidate experience [3] Group 2: AI and Cloud Strategy - SAP is investing heavily in AI, with over 30,000 developers working to enhance its AI foundation and increase user efficiency by 30% by the end of 2025 [5] - The expansion of the SAP Sovereign Cloud portfolio reflects SAP's commitment to digital sovereignty and AI-driven innovation, particularly in Europe [6] - SAP's growth strategy includes product innovation and embedding AI to drive sustained growth through 2027 [7] Group 3: Market Challenges - SAP faces revenue pressures due to long sales cycles, complex licensing, and shifting budgets, which may impact cloud backlog growth [8] - The performance in the second half of the year is critical as most cloud deals are signed during this period [8]

Core Insights - SAP SE has launched an expanded cloud strategy focusing on digital sovereignty and AI-driven innovation in Europe, addressing regulatory requirements and data protection needs [1][5][10] - The SAP Sovereign Cloud offers flexible deployment options tailored to customer requirements, enabling organizations to innovate securely while maintaining control over their digital assets [2][4][10] Investment Commitment - SAP is committing €20 billion to enhance Europe's digital resilience through secure and regulation-compliant cloud solutions, particularly for the public sector and regulated industries [5][10] Cloud Infrastructure and Offerings - The SAP Cloud Infrastructure (Europe) operates within EU data centers, ensuring compliance with local regulations, while the SAP Sovereign Cloud On-Site provides infrastructure within customer-selected data centers [3][6] - Delos Cloud is specifically designed for the German public sector, facilitating digital transformation while adhering to national sovereignty requirements [4] Financial Performance - SAP's cloud backlog increased by 22% to €18.1 billion, with cloud revenues rising 24% to €5.13 billion, driven by a 30% increase in Cloud ERP Suite revenues to €4.42 billion [8][10] - The company maintains its 2025 outlook, projecting cloud revenues of €21.6–€21.9 billion, reflecting a growth rate of 26–28% at constant currency [8] Growth Strategy - SAP's growth strategy is built on four pillars: product innovation, go-to-market transformation, simplification, and talent investment, aiming for sustained growth through 2027 [9] - The SAP Business Data Cloud is emerging as a core platform, integrating enterprise data to enhance AI-driven operations [11]

Core Insights - SAP SE reported a strong second-quarter 2025 performance with non-IFRS earnings per share of €1.50 ($1.70), a 37% increase year-over-year, although it fell short of the Zacks Consensus Estimate of $1.63 [1] - Total revenues on a non-IFRS basis reached €9.03 billion ($10.24 billion), marking a 9% year-over-year increase, but also below the Zacks Consensus Estimate of $10.37 billion [1] - The company's cloud revenue surged by 24% year-over-year, driven by robust growth in Cloud ERP Suite revenues [5][8] Financial Performance - Non-IFRS operating profit rose 32% to €2.57 billion, with a margin increase to 28.5%, attributed to improved operational efficiency and cost controls [13] - Non-IFRS gross profit increased 10% to €6.64 billion, with cloud gross profit rising 27% to €3.86 billion [12] - Free cash flow increased significantly by 83% to €2.36 billion during the quarter, indicating strong operational strength [14] Cloud Business Growth - The current cloud backlog surged 22% to €18.1 billion, a key indicator of market success [4] - Cloud revenues reached €5.13 billion, with a notable 30% growth in Cloud ERP Suite revenues [5] - The cloud and software segment accounted for 88.2% of total revenues, generating €7.97 billion, an 11% year-over-year increase [4] Strategic Initiatives - SAP's investment in AI and data platforms is yielding positive results, with the AI assistant Joule enhancing process efficiency and user productivity [2] - The "RISE with SAP" program continues to attract global organizations, indicating strong client adoption [7] - The company initiated a transformation program in January 2024, concluding in Q1 2025, aimed at enhancing operational scalability [16] Customer Engagement - Significant customer wins were reported, including partnerships with major organizations such as Accenture, BMW Group, and L'Oréal [10] - The cloud revenue growth was particularly strong in the APJ and EMEA regions, with standout performances in countries like Brazil, France, and India [11] Future Outlook - SAP reaffirmed its 2025 financial outlook, anticipating cloud revenues between €21.6-€21.9 billion, representing a year-over-year increase of 26-28% [17] - Cloud and software revenues are expected to be in the range of €33.1-€33.6 billion, with a projected increase of 11-13% year-over-year [18] - Free cash flow is estimated to reach around €8 billion, a significant rise from €4.22 billion in 2024 [19]