SAP reported a 19% increase in its cloud revenue for the fourth quarter of 2025 (Q4 2025) to €5.61bn ($6.69bn), compared to €4.71bn ($5.61bn) in the same period of last year.

This growth contributed to a total revenue increase of 3% for the reported quarter ended 31 December, reaching €9.68bn, compared to €9.37bn in Q4 2024.  

SAP’s net income for Q4 2025 rose by 17% to €1.89bn, up from €1.61bn in the same period the previous year.

For the full year, SAP’s financial performance showed a significant increase, with net income more than doubling from €3.15bn in 2024 to €7.49bn in 2025. The IFRS operating profit increased by 111% to €9.83bn, while total revenue climbed by 8% to €36.8bn, compared to €34.18bn in 2024.

As of 31 December 2025, SAP reported a 22% increase in total cloud backlog, reaching €77.29bn, with a 30% rise when adjusted for constant currencies.

For the full year, cloud revenue increased by 23% to €21.02bn, or 26% at constant currencies.

The Cloud ERP Suite saw a 28% growth, amounting to €18.12bn, and a 32% increase at constant currencies.

Subscription revenue rose by 22% to €21.33bn, with a 26% increase at constant currencies. Conversely, software licenses revenue declined by 29% to €990m, or 27% at constant currencies.

Cloud and software revenue increased by 9% to €32.54bn, or 12% at constant currencies. However, SAP’s Services revenue decreased by 2% to €4.26bn, though it showed a 1% increase at constant currencies.

Looking ahead, SAP projects cloud revenue growth of 23% to 25% for 2026, with expectations to reach €25.8 to €26.2bn.

SAP CEO Christian Klein said: “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.”

In the fourth quarter, SAP’s “RISE with SAP” initiative attracted global customers such as adidas, BioNTech, and Toyota, focusing on comprehensive business transformations.

Companies like Lockheed Martin and Rolls-Royce SMR implemented SAP S/4HANA Cloud, while others like KPMG and Snowflake opted for “GROW with SAP” to swiftly adopt cloud ERP.

Key customer wins during the reported quarter included Deutsche Bundesbank and Mondelez International. SAP’s cloud revenue excelled in regions like APJ and EMEA, with notable performances in Brazil, Germany, and the UK.

Collaborations with Snowflake and France’s AI sector were announced, alongside the launch of the EU AI Cloud for enhanced digital sovereignty.

In August 2025, SAP announced the acquisition of SmartRecruiters, a talent acquisition software provider, for €753m. The deal, which closed in the following month, enhances SAP’s SuccessFactors HCM suite with AI-driven insights.

In 2025, SmartRecruiters contributed €26m to SAP’s revenue and impacted operating profit negatively.

In other disclosures, SAP recorded a provision of €174m related to the Teradata litigation as of 31 December 2025.

SAP CFO Dominik Asam said: “We closed 2025 on a high note, delivering strong operating profit and free cash flow ahead of our expectations. This performance reflects focused execution, financial discipline, and the continued trust our customers place in us as the North Star for their digital transformation.

“As evidenced by continued strong growth well ahead of the market in SaaS and PaaS, and our ability to bring such growth down to the bottom line and Free Cash Flow, we are confident that our strategy and operational discipline will continue to drive long-term value creation.”