SAP Reports Strong Growth in Cloud Services Amid Competitive Market Conditions

SAP Quarterly Statement Q3 2025

On October 22, 2025, SAP SE released its quarterly financial results for the third quarter ending September 30, 2025. The report highlighted robust growth in cloud services, fueled by increased adoption across its Business Cloud portfolio.

Surge in Cloud Backlog

SAP's current cloud backlog reached an impressive €18.8 billion, marking a 23% increase compared to the previous year, and a staggering 27% growth when adjusted for constant currencies. This positive trend reflects the rising demand for SAP’s cloud-based solutions, showcasing the resilience and agility of the company in an uncertain economic climate.

Significant Cloud Revenue Growth

The financial results revealed that cloud revenue soared by 22% to €5.29 billion during the quarter, with a similar 27% growth rate observed when considering constant currencies. A notable highlight includes the Cloud ERP Suite revenue, which saw a remarkable 26% increase, amounting to €4.59 billion, translating to a 31% growth in constant currencies. Overall cloud and software revenue climbed to €8.02 billion, an 8% increase with a 12% rise in constant currency terms.

Overall Revenue Performance

SAP reported a total revenue rise of 7% to €9.08 billion for Q3, with a corresponding increase of 11% when adjusted for constant currencies. The growth trajectory of the company’s cloud services has not only bolstered overall revenues but has also improved the share of predictable revenue, which increased by 2 percentage points, reaching 87%.

Profits and Shareholder Returns

Operating profit surged by 12%, increasing to €2.49 billion, while the non-IFRS operating profit displayed an even more impressive growth of 14%. Earnings per share increased by 37% to €1.72, indicating a positive return on investment for shareholders. SAP's board reported the completion of a €5 billion share repurchase program, reflecting confidence in the company’s sustained growth trajectory.

Strategic Partnerships and Customer Adoption

SAP has focused on enhancing customer engagement and expanding its ecosystem through strategic partnerships. Recent collaborations with prominent firms such as OpenAI and Amazon Web Services aim to bolster SAP’s cloud capabilities and innovate its service offerings. In Q3, notable customer engagement included major businesses such as Alphabet, BMW, and Nestlé, who have embarked on digital transformation journeys leveraging “RISE with SAP.”

Expansion and Future Outlook

Looking ahead, SAP's leadership remains optimistic, with forecasts projecting strong growth across its cloud services in 2026. The company has adjusted its outlook for 2025, expecting to generate cloud revenue towards the lower end of the €21.6 to €21.9 billion range at constant currencies, up by 26% to 28% compared to 2024.

The growth metrics for Q3 2025 unveil SAP’s adaptability and forward momentum in a rapidly changing market landscape. As competition tightens, SAP’s robust performance across cloud services positions it well for continued success in the enterprise solutions arena. With ongoing investments in innovation and expansion, SAP aims to maintain its industry leadership well into the future.