SAP SE
SAP SE
10/27/2025 | Press release | Distributed by Public on 10/27/2025 05:00
IFRS operating profit up 12%, non-IFRS operating profit up 14% and up 19% at constant currencies (Form 6-K)
| IFRS operating profit up 12%, non-IFRS operating profit up 14% and up 19% at constant currencies |
| SAP updates its 2025 cloud revenue, operating profit and free cash flow outlook |
Q3 2025 | in € millions, unless otherwise stated
1/26
| Quarterly Statement Q3 2025 |
Walldorf, Germany - October 22, 2025
SAP SE (NYSE: SAP) announced today its financial results for the third quarter ended September 30, 2025.
Christian Klein, CEO:
SAP delivered a great Q3 with strong cloud revenue growth of 27%. We are gaining market share as our customers are adopting solutions across the entire Business Suite, including Business Data Cloud and AI at accelerated pace. For Q4 we are executing against a strong pipeline - which gives us confidence in our accelerating total revenue growth ambition for 2026.
Dominik Asam, CFO:
Q3's strong performance underscores the strength and agility of our model. Through disciplined execution and a sharp focus on profitability and cash flow, we've maintained forward momentum despite an uncertain macroeconomic backdrop. We enter the fourth quarter confident in our ability to deliver on our commitments, as reflected by an improved outlook for operating profit and free cash flow.
Financial Performance
Group results at a glance - Third quarter 2025
| IFRS | Non-IFRS1 | |||||||
| € million, unless otherwise stated | Q3 2025 | Q3 2024 | ∆ in % | Q3 2025 | Q3 2024 | ∆ in % |
∆ in % const. curr. |
|
| SaaS/PaaS | 5,212 | 4,234 | 23 | 5,212 | 4,234 | 23 | 28 | |
| Thereof Cloud ERP Suite2 | 4,586 | 3,636 | 26 | 4,586 | 3,636 | 26 | 31 | |
| Thereof Extension Suite3 | 626 | 598 | 5 | 626 | 598 | 5 | 9 | |
| IaaS4 | 78 | 117 | -34 | 78 | 117 | -34 | -31 | |
| Cloud revenue | 5,290 | 4,351 | 22 | 5,290 | 4,351 | 22 | 27 | |
| Cloud and software revenue | 8,016 | 7,429 | 8 | 8,016 | 7,429 | 8 | 12 | |
| Total revenue | 9,076 | 8,470 | 7 | 9,076 | 8,470 | 7 | 11 | |
| Share of more predictable revenue (in %) | 87 | 84 | 2pp | 87 | 84 | 2pp | ||
| Cloud gross profit | 3,948 | 3,184 | 24 | 3,972 | 3,209 | 24 | 28 | |
| Gross profit | 6,671 | 6,212 | 7 | 6,696 | 6,236 | 7 | 11 | |
| Operating profit (loss) | 2,487 | 2,214 | 12 | 2,566 | 2,244 | 14 | 19 | |
| Profit (loss) after tax | 2,051 | 1,441 | 42 | 1,852 | 1,437 | 29 | ||
| Earnings per share - Basic (in €) | 1.72 | 1.25 | 37 | 1.59 | 1.23 | 29 | ||
| Net cash flows from operating activities | 1,502 | 1,403 | 7 | |||||
| Free cash flow | 1,266 | 1,200 | 5 | |||||
1 For a breakdown of the individual adjustments see table "Non-IFRS Operating Expense Adjustments by Functional Areas" in this Quarterly Statement.
2 Cloud ERP Suite references the portfolio of strategic Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) solutions that are tightly integrated with our core ERP solutions and are included in key commercial packages, such as RISE with SAP. Further, Cloud ERP Suite also includes cloud-based capabilities enabling our customers' ERP landscapes and their cloud transformation. The following offerings contribute to Cloud ERP Suite revenue: SAP Cloud ERP, SAP Business Technology Platform, financial- and spend management, supply chain management, core solutions for human capital management, commerce, business transformation management and AI.
3 Extension Suite references SAP's remaining SaaS and PaaS solutions that supplement and extend the functional coverage of the Cloud ERP Suite.
4 Infrastructure as a service (IaaS): The major portion of IaaS comes from SAP HANA Enterprise Cloud.
2/26
| Quarterly Statement Q3 2025 |
Group results at a glance - Nine months ended September 2025
| IFRS | Non-IFRS1 | |||||||
| € million, unless otherwise stated |
Q1-Q3 2025 |
Q1-Q3 2024 |
∆ in % |
Q1-Q3 2025 |
Q1-Q3 2024 |
∆ in % |
∆ in % const. curr. |
|
| SaaS/PaaS | 15,147 | 12,016 | 26 | 15,147 | 12,016 | 26 | 29 | |
| Thereof Cloud ERP Suite revenue2 | 13,258 | 10,217 | 30 | 13,258 | 10,217 | 30 | 32 | |
| Thereof Extension Suite revenue3 | 1,889 | 1,799 | 5 | 1,889 | 1,799 | 5 | 8 | |
| IaaS4 | 267 | 417 | -36 | 267 | 417 | -36 | -35 | |
| Cloud revenue | 15,413 | 12,433 | 24 | 15,413 | 12,433 | 24 | 27 | |
| Cloud and software revenue | 23,920 | 21,563 | 11 | 23,920 | 21,563 | 11 | 13 | |
| Total revenue | 27,116 | 24,798 | 9 | 27,116 | 24,798 | 9 | 11 | |
| Share of more predictable revenue (in %) | 86 | 84 | 2pp | 86 | 84 | 2pp | ||
| Cloud gross profit | 11,501 | 9,052 | 27 | 11,573 | 9,101 | 27 | 30 | |
| Gross profit | 19,898 | 17,990 | 11 | 19,971 | 18,039 | 11 | 13 | |
| Operating profit (loss) | 7,276 | 2,648 | >100 | 7,590 | 5,717 | 33 | 35 | |
| Profit (loss) after tax | 5,596 | 1,534 | >100 | 5,280 | 3,660 | 44 | ||
| Earnings per share - Basic (in €) | 4.70 | 1.31 | >100 | 4.53 | 3.13 | 44 | ||
| Net cash flows from operating activities | 7,859 | 5,791 | 36 | |||||
| Free cash flow | 7,205 | 5,130 | 40 | |||||
1 For a breakdown of the individual adjustments see table "Non-IFRS Operating Expense Adjustments by Functional Areas" in this Quarterly Statement.
2 Cloud ERP Suite references the portfolio of strategic Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) solutions that are tightly integrated with our core ERP solutions and are included in key commercial packages, such as RISE with SAP. Further, Cloud ERP Suite also includes cloud-based capabilities enabling our customers' ERP landscapes and their cloud transformation. The following offerings contribute to Cloud ERP Suite revenue: SAP Cloud ERP, SAP Business Technology Platform, financial- and spend management, supply chain management, core solutions for human capital management, commerce, business transformation management and AI.
3 Extension Suite references SAP's remaining SaaS and PaaS solutions that supplement and extend the functional coverage of the Cloud ERP Suite.
4 Infrastructure as a service (IaaS): The major portion of IaaS comes from SAP HANA Enterprise Cloud
Financial Highlights1
Third Quarter 2025
In the third quarter, current cloud backlog grew by 23% to €18.84 billion and was up 27% at constant currencies, retaining its second quarter growth momentum considering that the WalkMe acquisition is now in the base. Cloud revenue was up 22% to €5.29 billion and up 27% at constant currencies. Cloud ERP Suite revenue was up 26% to €4.59 billion and up 31% at constant currencies.
Software licenses revenue decreased by 43% to €0.16 billion and was down 42% at constant currencies. Cloud and software revenue was up 8% to €8.02 billion and up 12% at constant currencies. Services revenue was up 2% to €1.06 billion and up 6% at constant currencies. Total revenue was up 7% to €9.08 billion and up 11% at constant currencies.
The share of more predictable revenue increased by 2 percentage points to 87%.
IFRS cloud gross profit was up 24% to €3.95 billion. Non-IFRS cloud gross profit was up 24% to €3.97 billion and was up 28% at constant currencies. IFRS cloud gross margin was up 1.5 percentage points to 74.6%, non-IFRS cloud gross margin up 1.3 percentage points to 75.1% and up 1.1 percentage points at constant currencies to 74.9%.
IFRS operating profit increased 12% to €2.49 billion and IFRS operating margin was up 1.3 percentage points to 27.4%. Non-IFRS operating profit was up 14% to €2.57 billion and was up 19% at constant currencies. Non-IFRS operating margin increased by 1.8 percentage points to 28.3% at both nominal and constant currencies. IFRS and non-IFRS operating profit growth were negatively impacted by approximately €0.1 billion as a result of a change in case law that affected SAP's other tax litigation as well as approximately €0.1 billion related to a workforce transformation, with another €0.1 billion expected to be realized in the fourth quarter of 2025.
IFRS earnings per share (basic) increased 37% to €1.72. Non-IFRS earnings per share (basic) increased 29% to €1.59. IFRS effective tax rate was 25.3% and non-IFRS effective tax rate was 27.9%. The IFRS effective tax rate is lower than the non-IFRS effective tax rate due to tax benefits from tax-exempt income.
| 1 | The Q3 2025 results were also impacted by other effects. For details, please refer to the disclosures on page 26 of this document. |
3/26
| Quarterly Statement Q3 2025 |
Operating cash flow in the third quarter was up 7% to €1.50 billion and free cash flow increased by 5% to €1.27 billion. The increase was mainly attributable to higher profitability and to lower restructuring payments, which were partially offset by higher tax payments. For the first nine months, operating cash flow was up 36% to €7.86 billion and free cash flow increased by 40% to €7.21 billion.
Share Repurchase Program
In May 2023, SAP announced a share repurchase program with an aggregate volume of up to €5 billion, which was completed on August 13, 2025. SAP had repurchased 26,010,591 shares at an average price of €188.24 resulting in a purchased volume of approximately €4.9 billion under the program. The fourth and final tranche of the program was completed with a purchased volume of approximately €1.5 billion.
2024 Transformation Program: Focus on scalability of operations and key strategic growth areas
In January 2024, SAP announced a company-wide restructuring program which concluded as planned in the first quarter 2025. Overall expenses associated with the program were approximately €3.2 billion. Restructuring payouts amounted to €2.5 billion for the full-year 2024 and €0.7 billion for the first nine months of 2025. Approximately €0.1 billion is expected to be paid out in the fourth quarter of 2025.
Business Highlights
In the third quarter, customers around the globe continued to choose the "RISE with SAP" journey to drive their end-to-end business transformations. These customers included: Alphabet, ANA HOLDINGS, BarmeniaGothaer, Computacenter, DXC Technology, Endress+Hauser, Ericsson, Jack Wolfskin, Japan Aviation Electronics Industry, JK Tyre & Industries, JYSK, The Magnum Ice Cream Company, Maple Leaf Foods, NIPPON EXPRESS HOLDINGS, Olam Food Ingredients, Otto Aerospace, STIHL, Takeda Pharmaceuticals, Tapestry, Vale Base Metals, and Zalaris.
BMW, City of Charlottesville, The Clorox Company, Country Fire Authority, La Trobe University, Nestlé, NYK Line, and PwC went live on SAP S/4HANA Cloud in the third quarter.
ABB, ArborGen, Kodiak AI, Konecta, Noventa, Perplexity, and VidaVeg chose "GROW with SAP", a journey helping customers adopt cloud ERP with speed, predictability, and continuous innovation.
Key customer wins across SAP's solution portfolio included: BREITLING, Canton of Bern, Derbyshire County Council, Grupo Boticário, Panasonic, Schwarz Group, Sysmex Corporation, Tata Consultancy Services, and Volkswagen Mexico.
Aeropuertos Argentina, The Australian Postal Corporation, HiPP, Landis+Gyr, and Rieter went live on SAP solutions.
In the third quarter, SAP's cloud revenue performance was particularly strong in APJ and EMEA and solid in the Americas region. Brazil, France, Germany, India, Italy and South Korea had outstanding performance, while Japan, Spain, and the U.S. were particularly strong.
On August 1, SAP and SmartRecruiters announced that SAP entered into an agreement to acquire SmartRecruiters, a leading talent acquisition (TA) software provider. The acquisition was completed on September 11.
On September 19, SAP and ADP, a global leader in HR and payroll solutions, announced that they are partnering to enable shared clients to run ADP Global Payroll in the cloud.
On September 24, SAP and OpenAI announced the launch of OpenAI for Germany, a partnership to bring SAP's enterprise applications expertise and OpenAI's leading AI technology to Germany's public sector.
In addition, SAP and Amazon Web Services (AWS), an Amazon.com company, unveiled plans to make SAP's Sovereign Cloud capabilities available on the AWS European Sovereign Cloud, a new independent cloud for Europe backed by a planned €7.8 billion investment from Amazon.
On September 25, SAP confirmed that the European Commission began formal proceedings on on-premise maintenance and support policies. SAP is working closely with the EU Commission to resolve the matter. Further, SAP does not currently anticipate the engagement will result in material impact on its financial performance.
In September, SAP National Security Services (SAP NS2®) was awarded a $1 billion firm-fixed-price Indefinite Delivery/Indefinite Quantity (IDIQ) contract from the United States Army for an end-user license agreement for the RISE with SAP portfolio. This significant deal is expected to run through September 2035, and enables the migration from on-premise systems to SAP's NS2's FedRAMP-authorized cloud platform, enhancing the speed and efficiency of enterprise software delivery to support mission-critical military operations.
On October 6, SAP and Google Cloud announced that they are expanding their long-standing data and analytics partnership with the launch of SAP Business Data Cloud Connect for Google BigQuery - a new capability introduced that simplifies access to mission-critical SAP data products from SAP Business Data Cloud through bidirectional, zero-copy sharing.
4/26
| Quarterly Statement Q3 2025 |
Outlook2025
Financial Outlook 2025
For 2025, SAP is updating its cloud revenue, operating profit and free cash flow outlook and now expects:
| · | To generate cloud revenue towards the lower end of the outlook range of €21.6 - 21.9 billion at constant currencies (2024: €17.14 billion), up 26% to 28% at constant currencies. |
| · | To generate non-IFRS operating profit towards the upper end of the outlook range of €10.3 - 10.6 billion at constant currencies (2024: €8.15 billion), up 26% to 30% at constant currencies. |
| · | €8.0 - 8.2 billion free cash flow (2024: €4.22 billion). The previous outlook was approximately €8.0 billion. |
SAP continues to expect:
| · | €33.1 - 33.6 billion cloud and software revenue at constant currencies (2024: €29.83 billion), up 11% to 13% at constant currencies. |
| · | An effective tax rate (non-IFRS) of approximately 32% (2024: 32.3%)2. |
| · | Current cloud backlog growth at constant currencies to slightly decelerate in 2025. |
While SAP's 2025 financial outlook for the income statement parameters is at constant currencies (including an average exchange rate of 1.08 USD per EUR), actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the company progresses through the year, as reflected in the table below.
Currency Impact Assuming September 30, 2025 Rates Apply for the Remainder of 2025
| In percentage points | Q4 2025 | FY 2025 |
| Cloud revenue growth | -7.0pp | -4.0pp |
| Cloud and software revenue growth | -5.5pp | -3.0pp |
| Operating profit growth (non-IFRS) | -6.5pp | -3.5pp |
This includes an exchange rate of 1.17 USD per EUR.
Non-Financial Outlook 2025
For 2025, SAP continues to expect:
| · | A Customer Net Promoter Score of 12 to 16. |
| · | The Business Health Culture Index (BHCI) to be in a range of 80% to 82%. |
| · | The Employee Engagement Index to be in a range of 74% to 78%. |
| · | To steadily decrease carbon emissions across the relevant value chain. |
| 2 | The effective tax rate (non-IFRS) is a non-IFRS financial measure and is presented for supplemental informational purposes only. We do not provide an outlook for the effective tax rate (IFRS) due to the uncertainty and potential variability of gains and losses associated with equity securities, which are reconciling items between the two effective tax rates (non-IFRS and IFRS). These items cannot be provided without unreasonable efforts but could have a significant impact on our future effective tax rate (IFRS). |
5/26
| Quarterly Statement Q3 2025 |
Additional Information
This quarterly statement and all information therein is preliminary and unaudited. Due to rounding, numbers may not add up precisely.
SAP Performance Measures
For more information about our key growth metrics and performance measures, their calculation, their usefulness, and their limitations, please refer to the following document on our Investor Relations website: https://www.sap.com/investors/performance-measures.
Webcast
SAP senior management will host a financial analyst conference call on Wednesday, October 22nd at 11:00 PM (CEST) / 10:00 PM (BST) / 5:00 PM (EDT) / 2:00 PM (PDT). The conference will be webcast on the Company's website at https://www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the third quarter results can be found at https://www.sap.com/investor.
About SAP
As a global leader in enterprise applications and business AI, SAP (NYSE: SAP) stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit www.sap.com.
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Follow SAP Investor Relations on LinkedIn at SAP Investor Relations.
For more information, press only:
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| Daniel Reinhardt | +49 (6227) 7-40201 | [email protected], CET |
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6/26
| Quarterly Statement Q3 2025 |
Contents
| Financial and Non-Financial Key Facts (IFRS and Non-IFRS) | 8 | |
| Primary Financial Statements of SAP Group (IFRS) | 10 | |
| (A) | Consolidated Income Statements | 10 |
| (B) | Consolidated Statements of Financial Position | 12 |
| (C) | Consolidated Statements of Cash Flows | 13 |
| Non-IFRS Numbers | 14 | |
| (D) | Basis of Non-IFRS Presentation | 14 |
| (E) | Reconciliation from Non-IFRS Numbers to IFRS Numbers | 14 |
| (F) | Non-IFRS Adjustments - Actuals and Estimates | 19 |
| (G) | Non-IFRS Operating Expense Adjustments by Functional Areas | 19 |
| Disaggregations | 21 | |
| (H) | Segment Reporting | 21 |
| (I) | Revenue by Region (IFRS and Non-IFRS) | 23 |
| (J) | Employees by Region and Functional Areas | 25 |
| Other Disclosures | 26 | |
| (K) | Share-Based Payment | 26 |
| (L) | Business Combinations | 26 |
| (M) | Tax-related Litigation | 26 |
7/26
| Quarterly Statement Q3 2025 |
Financial and Non-Financial Key Facts
(IFRS and Non-IFRS)
| € millions, unless otherwise stated |
Q1 2024 |
Q2 2024 |
Q3 2024 |
Q4 2024 |
TY 2024 |
Q1 2025 |
Q2 2025 |
Q3 2025 |
| Revenues | ||||||||
| Cloud | 3,928 | 4,153 | 4,351 | 4,708 | 17,141 | 4,993 | 5,130 | 5,290 |
| % change - yoy | 24 | 25 | 25 | 27 | 25 | 27 | 24 | 22 |
| % change constant currency - yoy | 25 | 25 | 27 | 27 | 26 | 26 | 28 | 27 |
| Cloud ERP Suite | 3,167 | 3,414 | 3,636 | 3,949 | 14,166 | 4,251 | 4,422 | 4,586 |
| % change - yoy | 31 | 33 | 34 | 35 | 33 | 34 | 30 | 26 |
| % change constant currency - yoy | 32 | 33 | 36 | 35 | 34 | 33 | 34 | 31 |
| Software licenses | 203 | 229 | 285 | 683 | 1,399 | 183 | 194 | 161 |
| % change - yoy | -26 | -28 | -15 | -18 | -21 | -10 | -15 | -43 |
| % change constant currency - yoy | -25 | -27 | -14 | -19 | -21 | -10 | -13 | -42 |
| Software support | 2,829 | 2,792 | 2,793 | 2,876 | 11,290 | 2,761 | 2,642 | 2,565 |
| % change - yoy | -3 | -3 | -3 | 1 | -2 | -2 | -5 | -8 |
| % change constant currency - yoy | -1 | -3 | -2 | 1 | -1 | -3 | -3 | -5 |
| Total revenue | 8,041 | 8,288 | 8,470 | 9,377 | 34,176 | 9,013 | 9,027 | 9,076 |
| % change - yoy | 8 | 10 | 9 | 11 | 10 | 12 | 9 | 7 |
| % change constant currency - yoy | 9 | 10 | 10 | 10 | 10 | 11 | 12 | 11 |
| Profits | ||||||||
| Operating profit (loss) (IFRS) | -787 | 1,222 | 2,214 | 2,016 | 4,665 | 2,333 | 2,456 | 2,487 |
| Operating profit (loss) (non-IFRS) | 1,533 | 1,940 | 2,244 | 2,436 | 8,153 | 2,455 | 2,568 | 2,566 |
| % change - yoy | 16 | 33 | 27 | 24 | 25 | 60 | 32 | 14 |
| % change constant currency - yoy | 19 | 35 | 28 | 24 | 26 | 58 | 35 | 19 |
| Profit (loss) after tax (IFRS) | -824 | 918 | 1,441 | 1,616 | 3,150 | 1,796 | 1,749 | 2,051 |
| Profit (loss) after tax (non-IFRS) | 944 | 1,278 | 1,437 | 1,619 | 5,279 | 1,681 | 1,747 | 1,852 |
| % change - yoy | 9 | 60 | 6 | 24 | 22 | 78 | 37 | 29 |
| Margins | ||||||||
| Cloud gross margin (IFRS, in %) | 72.2 | 73.0 | 73.2 | 72.8 | 72.8 | 74.5 | 74.7 | 74.6 |
| Cloud gross margin (non-IFRS, in %) | 72.5 | 73.3 | 73.7 | 73.5 | 73.3 | 75.0 | 75.2 | 75.1 |
| Gross margin (IFRS, in %) | 71.7 | 72.6 | 73.3 | 74.0 | 73.0 | 73.3 | 73.3 | 73.5 |
| Gross margin (non-IFRS, in %) | 71.8 | 72.7 | 73.6 | 74.3 | 73.2 | 73.6 | 73.6 | 73.8 |
| Operating margin (IFRS, in %) | -9.8 | 14.7 | 26.1 | 21.5 | 13.6 | 25.9 | 27.2 | 27.4 |
| Operating margin (non-IFRS, in %) | 19.1 | 23.4 | 26.5 | 26.0 | 23.9 | 27.2 | 28.5 | 28.3 |
| Order Entry and current cloud backlog | ||||||||
| Current cloud backlog | 14,179 | 14,808 | 15,377 | 18,078 | 18,078 | 18,202 | 18,052 | 18,839 |
| % change - yoy | 27 | 28 | 25 | 32 | 32 | 28 | 22 | 23 |
| % change constant currency - yoy | 28 | 28 | 29 | 29 | 29 | 29 | 28 | 27 |
| Share of cloud orders greater than €5 million based on total cloud order entry volume (in %) | 52 | 52 | 64 | 68 | 63 | 54 | 53 | 63 |
| Share of cloud orders smaller than €1 million based on total cloud order entry volume (in %) | 21 | 20 | 16 | 11 | 15 | 20 | 20 | 16 |
| Liquidity and Cash Flow | ||||||||
| Net cash flows from operating activities | 2,878 | 1,509 | 1,403 | -584 | 5,207 | 3,780 | 2,577 | 1,502 |
| Free cash flow | 2,642 | 1,288 | 1,200 | -908 | 4,222 | 3,583 | 2,357 | 1,266 |
| Cash and cash equivalents | 9,295 | 7,870 | 10,005 | 9,609 | 9,609 | 11,345 | 7,942 | 8,554 |
| Group liquidity | 13,411 | 11,449 | 11,856 | 11,080 | 11,080 | 12,760 | 9,788 | 9,688 |
| Financial debt (-) | -7,770 | -7,776 | -8,996 | -9,385 | -9,385 | -8,121 | -7,492 | -7,235 |
| Net liquidity (+) / Net debt(-) | 5,641 | 3,674 | 2,860 | 1,695 | 1,695 | 4,639 | 2,297 | 2,453 |
8/26
| Quarterly Statement Q3 2025 |
| Non-Financials | ||||||||
| Number of employees (quarter end)1 | 108,133 | 105,315 | 107,583 | 109,121 | 109,121 | 108,187 | 108,929 | 110,730 |
|
Gross greenhouse gas emissions (scope 1, 2, 3 / market-based)2 (in million tons CO2 equivalents) |
1.8 | 1.8 | 1.8 | 1.8 | 6.9 | 1.6 | 1.6 | 1.6 |
1 In full-time equivalents.
2 Our gross greenhouse gas emissions (GHG) include the total lifecycle emissions resulting from the use of our on-premise software. The calculation of use of sold products emissions is based on the number of active maintenance contracts at quarter end. Therefore, the emissions for individual quarters will not add up to the total sum of GHG emissions at year end.
9/26
| Quarterly Statement Q3 2025 |
Primary Financial Statements of SAP Group (IFRS)
| (A) | Consolidated Income Statements |
| (A.1) | Consolidated Income Statements - Quarter |
| € millions, unless otherwise stated | Q3 2025 | Q3 2024 | ∆ in % | |
| Cloud | 5,290 | 4,351 | 22 | |
| Software licenses | 161 | 285 | -43 | |
| Software support | 2,565 | 2,793 | -8 | |
| Software licenses and support | 2,726 | 3,078 | -11 | |
| Cloud and software | 8,016 | 7,429 | 8 | |
| Services | 1,060 | 1,041 | 2 | |
| Total revenue | 9,076 | 8,470 | 7 | |
| Cost of cloud | -1,342 | -1,167 | 15 | |
| Cost of software licenses and support | -303 | -306 | -1 | |
| Cost of cloud and software | -1,645 | -1,472 | 12 | |
| Cost of services | -760 | -786 | -3 | |
| Total cost of revenue | -2,405 | -2,258 | 7 | |
| Gross profit | 6,671 | 6,212 | 7 | |
| Research and development | -1,644 | -1,568 | 5 | |
| Sales and marketing | -2,185 | -2,098 | 4 | |
| General and administration | -364 | -361 | 1 | |
| Restructuring | 18 | 52 | -66 | |
| Other operating income/expense, net | -8 | -22 | -63 | |
| Total operating expenses | -6,589 | -6,256 | 5 | |
| Operating profit (loss) | 2,487 | 2,214 | 12 | |
| Other non-operating income/expense, net | 46 | -62 | NA | |
| Finance income | 524 | 240 | >100 | |
| Finance costs | -312 | -241 | 30 | |
| Financial income, net | 212 | -1 | NA | |
| Profit (loss) before tax | 2,745 | 2,151 | 28 | |
| Income tax expense | -694 | -710 | -2 | |
| Profit (loss) after tax | 2,051 | 1,441 | 42 | |
| Attributable to owners of parent | 2,004 | 1,463 | 37 | |
| Attributable to non-controlling interests | 47 | -23 | NA | |
| Earnings per share, basic (in €)1 | 1.72 | 1.25 | 37 | |
| Earnings per share, diluted (in €)1 | 1.71 | 1.24 | 38 |
1 For the three months ended September 30, 2025 and 2024, the weighted average number of shares was 1,164 million (diluted 1,172 million) and 1,166 million (diluted: 1,178 million), respectively (treasury stock excluded).
10/26
| Quarterly Statement Q3 2025 |
| (A.2) | Consolidated Income Statements - Year-to-Date |
| € millions, unless otherwise stated | Q1-Q3 2025 | Q1-Q3 2024 | ∆ in % | |
| Cloud | 15,413 | 12,433 | 24 | |
| Software licenses | 538 | 716 | -25 | |
| Software support | 7,969 | 8,414 | -5 | |
| Software licenses and support | 8,507 | 9,130 | -7 | |
| Cloud and software | 23,920 | 21,563 | 11 | |
| Services | 3,196 | 3,236 | -1 | |
| Total revenue | 27,116 | 24,798 | 9 | |
| Cost of cloud | -3,912 | -3,381 | 16 | |
| Cost of software licenses and support | -909 | -943 | -4 | |
| Cost of cloud and software | -4,821 | -4,324 | 12 | |
| Cost of services | -2,397 | -2,485 | -4 | |
| Total cost of revenue | -7,218 | -6,808 | 6 | |
| Gross profit | 19,898 | 17,990 | 11 | |
| Research and development | -4,935 | -4,839 | 2 | |
| Sales and marketing | -6,576 | -6,594 | 0 | |
| General and administration | -1,083 | -1,057 | 2 | |
| Restructuring | 0 | -2,821 | -100 | |
| Other operating income/expense, net | -27 | -31 | -12 | |
| Total operating expenses | -19,840 | -22,150 | -10 | |
| Operating profit (loss) | 7,276 | 2,648 | >100 | |
| Other non-operating income/expense, net | 53 | -215 | NA | |
| Finance income | 1,246 | 850 | 47 | |
| Finance costs | -859 | -726 | 18 | |
| Financial income, net | 387 | 124 | >100 | |
| Profit (loss) before tax | 7,715 | 2,557 | >100 | |
| Income tax expense | -2,119 | -1,023 | >100 | |
| Profit (loss) after tax | 5,596 | 1,534 | >100 | |
| Attributable to owners of parent | 5,481 | 1,523 | >100 | |
| Attributable to non-controlling interests | 115 | 11 | >100 | |
| Earnings per share, basic (in €)1 | 4.70 | 1.31 | >100 | |
| Earnings per share, diluted (in €)1 | 4.67 | 1.29 | >100 |
1 For the nine months ended September 30, 2025 and 2024, the weighted average number of shares was 1,166 million (diluted: 1,175 million) and 1,167 million (diluted: 1,179 million), respectively (treasury stock excluded).
11/26
| Quarterly Statement Q3 2025 |
| (B) | Consolidated Statements of Financial Position |
| as at 09/30/2025 and 12/31/2024 | ||
| € millions | 2025 | 2024 |
| Cash and cash equivalents | 8,554 | 9,609 |
| Other financial assets | 1,380 | 1,629 |
| Trade and other receivables | 5,778 | 6,774 |
| Other non-financial assets | 2,777 | 2,682 |
| Tax assets | 418 | 707 |
| Total current assets | 18,907 | 21,401 |
| Goodwill | 29,028 | 31,264 |
| Intangible assets | 2,390 | 2,706 |
| Property, plant, and equipment | 4,396 | 4,493 |
| Other financial assets | 7,058 | 7,141 |
| Trade and other receivables | 126 | 209 |
| Other non-financial assets | 3,964 | 3,990 |
| Tax assets | 317 | 359 |
| Deferred tax assets | 2,210 | 2,719 |
| Total non-current assets | 49,490 | 52,881 |
| Total assets | 68,396 | 74,282 |
| € millions | 2025 | 2024 |
| Trade and other payables | 2,074 | 1,988 |
| Tax liabilities | 934 | 585 |
| Financial liabilities | 3,032 | 4,277 |
| Other non-financial liabilities | 4,152 | 5,537 |
| Provisions | 170 | 716 |
| Contract liabilities | 6,749 | 5,978 |
| Total current liabilities | 17,111 | 19,082 |
| Trade and other payables | 3 | 10 |
| Tax liabilities | 554 | 512 |
| Financial liabilities | 6,089 | 7,169 |
| Other non-financial liabilities | 520 | 749 |
| Provisions | 547 | 494 |
| Deferred tax liabilities | 187 | 371 |
| Contract liabilities | 145 | 88 |
| Total non-current liabilities | 8,044 | 9,394 |
| Total liabilities | 25,155 | 28,476 |
| Issued capital | 1,229 | 1,229 |
| Share premium | 2,790 | 2,564 |
| Retained earnings | 45,671 | 42,907 |
| Other components of equity | 282 | 4,692 |
| Treasury shares | -7,163 | -5,954 |
| Equity attributable to owners of parent | 42,807 | 45,438 |
| Non-controlling interests | 434 | 368 |
| Total equity | 43,241 | 45,806 |
| Total equity and liabilities | 68,396 | 74,282 |
12/26
| Quarterly Statement Q3 2025 |
| (C) | Consolidated Statements of Cash Flows |
| € millions | Q1-Q3 2025 1 | Q1-Q3 2024 |
| Profit (loss) after tax | 5,596 | 1,534 |
| Adjustments to reconcile profit (loss) after tax to net cash flows from operating activities: | ||
| Depreciation and amortization | 986 | 943 |
| Share-based payment expense | 1,379 | 1,815 |
| Income tax expense | 2,119 | 1,023 |
| Financial income, net | -387 | -124 |
| Increase/decrease in allowances on trade receivables | 10 | -8 |
| Other adjustments for non-cash items | -3 | 212 |
| Increase/decrease in trade and other receivables | 679 | 943 |
| Increase/decrease in other assets | -365 | 56 |
| Increase/decrease in trade payables, provisions, and other liabilities | -1,676 | 746 |
| Increase/decrease in contract liabilities | 1,492 | 1,054 |
| Share-based payments | -691 | -1,064 |
| Income taxes paid, net of refunds | -1,280 | -1,341 |
| Net cash flows from operating activities | 7,859 | 5,791 |
| Business combinations, net of cash and cash equivalents acquired | -700 | -1,104 |
| Purchase of intangible assets and property, plant, and equipment | -559 | -528 |
| Proceeds from sales of intangible assets and property, plant, and equipment | 110 | 80 |
| Purchase of equity or debt instruments of other entities | -4,369 | -6,517 |
| Proceeds from sales of equity or debt instruments of other entities | 4,454 | 7,452 |
| Interest received | 317 | 420 |
| Net cash flows from investing activities | -747 | -197 |
| Dividends paid | -2,743 | -2,565 |
| Dividends paid on non-controlling interests | -3 | 0 |
| Purchase of treasury shares | -1,937 | -1,625 |
| Proceeds from borrowings | 2 | 1,251 |
| Repayments of borrowings | -2,106 | -14 |
| Payments of lease liabilities | -204 | -213 |
| Interest paid | -451 | -439 |
| Net cash flows from financing activities | -7,442 | -3,618 |
| Effect of foreign currency rates on cash and cash equivalents | -726 | -94 |
| Net increase/decrease in cash and cash equivalents | -1,055 | 1,881 |
| Cash and cash equivalents at the beginning of the period | 9,609 | 8,124 |
| Cash and cash equivalents at the end of the period | 8,554 | 10,005 |
1 As of January 2025, SAP no longer classifies interest paid and interest received as a part of cash flows from operating activities.
13/26
| Quarterly Statement Q3 2025 |
Non-IFRS Numbers
| (D) | Basis of Non-IFRS Presentation |
SAP disclose certain financial measures such as expense (non-IFRS) and profit measures (non-IFRS) that are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures.
For a more detailed description of all of SAP's non-IFRS measures and their limitations as well as SAP's constant currency and free cash flow figures, see Explanation of Non-IFRS Measures.
| (E) | Reconciliation from Non-IFRS Numbers to IFRS Numbers |
| (E.1) | Reconciliation of Non-IFRS Revenue - Quarter |
| € millions, unless otherwise stated | Q3 2025 | Q3 2024 | ∆ in % | |||
| IFRS |
Currency Impact |
Non-IFRS Constant Currency |
IFRS | IFRS |
Non-IFRS Constant Currency |
|
| Revenue Numbers | ||||||
| Cloud | 5,290 | 214 | 5,504 | 4,351 | 22 | 27 |
| Software licenses | 161 | 4 | 165 | 285 | -43 | -42 |
| Software support | 2,565 | 78 | 2,644 | 2,793 | -8 | -5 |
| Software licenses and support | 2,726 | 83 | 2,809 | 3,078 | -11 | -9 |
| Cloud and software | 8,016 | 297 | 8,313 | 7,429 | 8 | 12 |
| Services | 1,060 | 39 | 1,100 | 1,041 | 2 | 6 |
| Total revenue | 9,076 | 336 | 9,413 | 8,470 | 7 | 11 |
14/26
| Quarterly Statement Q3 2025 |
| (E.2) | Reconciliation of Non-IFRS Operating Expenses - Quarter |
| € millions, unless otherwise stated | Q3 2025 | Q3 2024 | ∆ in % | ||||||||
| IFRS | Adj. | Non-IFRS |
Currency Impact |
Non-IFRS Constant Currency |
IFRS | Adj. | Non-IFRS | IFRS | Non-IFRS |
Non-IFRS Constant Currency |
|
| Operating Expense Numbers | |||||||||||
| Cost of cloud | -1,342 | 24 | -1,318 | -1,167 | 25 | -1,142 | 15 | 15 | |||
| Cost of software licenses and support | -303 | 0 | -303 | -306 | 0 | -306 | -1 | -1 | |||
| Cost of cloud and software | -1,645 | 24 | -1,622 | -1,472 | 25 | -1,448 | 12 | 12 | |||
| Cost of services | -760 | 0 | -759 | -786 | 0 | -785 | -3 | -3 | |||
| Total cost of revenue | -2,405 | 24 | -2,381 | -2,258 | 25 | -2,233 | 7 | 7 | |||
| Gross profit | 6,671 | 24 | 6,696 | 236 | 6,932 | 6,212 | 25 | 6,236 | 7 | 7 | 11 |
| Research and development | -1,644 | 1 | -1,643 | -1,568 | 0 | -1,568 | 5 | 5 | |||
| Sales and marketing | -2,185 | 67 | -2,118 | -2,098 | 51 | -2,047 | 4 | 3 | |||
| General and administration | -364 | 4 | -360 | -361 | 6 | -356 | 1 | 1 | |||
| Restructuring | 18 | -18 | 0 | 52 | -52 | 0 | -66 | NA | |||
| Other operating income/expense, net | -8 | 0 | -8 | -22 | 0 | -22 | -63 | -63 | |||
| Total operating expenses | -6,589 | 79 | -6,510 | -239 | -6,749 | -6,256 | 30 | -6,226 | 5 | 5 | 8 |
| (E.3) | Reconciliation of Non-IFRS Profit Figures, Income Tax, and Key Ratios - Quarter |
| € millions, unless otherwise stated | Q3 2025 | Q3 2024 | ∆ in % | ||||||||
| IFRS | Adj. | Non-IFRS |
Currency Impact |
Non-IFRS Constant Currency |
IFRS | Adj. | Non-IFRS | IFRS | Non-IFRS |
Non-IFRS Constant Currency |
|
| Profit Numbers | |||||||||||
| Operating profit (loss) | 2,487 | 79 | 2,566 | 98 | 2,664 | 2,214 | 30 | 2,244 | 12 | 14 | 19 |
| Other non-operating income/expense, net | 46 | 0 | 46 | -62 | 0 | -62 | NA | NA | |||
| Finance income | 524 | -348 | 175 | 240 | -87 | 153 | >100 | 15 | |||
| Finance costs | -312 | 93 | -219 | -241 | 63 | -178 | 30 | 23 | |||
| Financial income, net | 212 | -256 | -44 | -1 | -24 | -24 | NA | 79 | |||
| Profit (loss) before tax | 2,745 | -177 | 2,569 | 2,151 | 6 | 2,157 | 28 | 19 | |||
| Income tax expense | -694 | -22 | -717 | -710 | -10 | -720 | -2 | 0 | |||
| Profit (loss) after tax | 2,051 | -199 | 1,852 | 1,441 | -3 | 1,437 | 42 | 29 | |||
| Attributable to owners of parent | 2,004 | -158 | 1,846 | 1,463 | -29 | 1,434 | 37 | 29 | |||
| Attributable to non-controlling interests | 47 | -41 | 6 | -23 | 26 | 3 | NA | 91 | |||
| Key Ratios | |||||||||||
| Operating margin (in %) | 27.4 | 28.3 | 28.3 | 26.1 | 26.5 | 1.3pp | 1.8pp | 1.8pp | |||
| Effective tax rate (in %)1 | 25.3 | 27.9 | 33.0 | 33.4 | -7.7pp | -5.5pp | |||||
| Earnings per share, basic (in €) | 1.72 | 1.59 | 1.25 | 1.23 | 37 | 29 | |||||
1 The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q3 2025 mainly resulted from tax effects of equity securities. The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q3 2024 mainly resulted from tax effects of acquisition-related charges and restructuring expenses.
15/26
| Quarterly Statement Q3 2025 |
| (E.4) | Reconciliation of Non-IFRS Revenue - Year-to-Date |
| € millions, unless otherwise stated | Q1-Q3 2025 | Q1-Q3 2024 | ∆ in % | |||
| IFRS |
Currency Impact |
Non-IFRS Constant Currency |
IFRS | IFRS |
Non-IFRS Constant Currency |
|
| Revenue Numbers | ||||||
| Cloud | 15,413 | 325 | 15,738 | 12,433 | 24 | 27 |
| Software licenses | 538 | 8 | 546 | 716 | -25 | -24 |
| Software support | 7,969 | 118 | 8,086 | 8,414 | -5 | -4 |
| Software licenses and support | 8,507 | 126 | 8,633 | 9,130 | -7 | -5 |
| Cloud and software | 23,920 | 451 | 24,371 | 21,563 | 11 | 13 |
| Services | 3,196 | 58 | 3,254 | 3,236 | -1 | 1 |
| Total revenue | 27,116 | 509 | 27,625 | 24,798 | 9 | 11 |
| (E.5) | Reconciliation of Non-IFRS Operating Expenses - Year-to-Date |
| € millions, unless otherwise stated | Q1-Q3 2025 | Q1-Q3 2024 | ∆ in % | ||||||||
| IFRS | Adj. | Non-IFRS |
Currency Impact |
Non-IFRS Constant Currency |
IFRS | Adj. | Non-IFRS | IFRS | Non-IFRS |
Non-IFRS Constant Currency |
|
| Operating Expense Numbers | |||||||||||
| Cost of cloud | -3,912 | 71 | -3,841 | -3,381 | 49 | -3,332 | 16 | 15 | |||
| Cost of software licenses and support | -909 | 0 | -909 | -943 | 0 | -943 | -4 | -4 | |||
| Cost of cloud and software | -4,821 | 71 | -4,750 | -4,324 | 49 | -4,275 | 12 | 11 | |||
| Cost of services | -2,397 | 1 | -2,396 | -2,485 | 0 | -2,484 | -4 | -4 | |||
| Total cost of revenue | -7,218 | 73 | -7,146 | -6,808 | 50 | -6,759 | 6 | 6 | |||
| Gross profit | 19,898 | 73 | 19,971 | 360 | 20,331 | 17,990 | 50 | 18,039 | 11 | 11 | 13 |
| Research and development | -4,935 | 4 | -4,931 | -4,839 | 3 | -4,835 | 2 | 2 | |||
| Sales and marketing | -6,576 | 230 | -6,346 | -6,594 | 180 | -6,413 | 0 | -1 | |||
| General and administration | -1,083 | 6 | -1,077 | -1,057 | 14 | -1,043 | 2 | 3 | |||
| Restructuring | 0 | 0 | 0 | -2,821 | 2,821 | 0 | -100 | NA | |||
| Other operating income/expense, net | -27 | 0 | -27 | -31 | 0 | -31 | -12 | -12 | |||
| Total operating expenses | -19,840 | 314 | -19,527 | -390 | -19,917 | -22,150 | 3,069 | -19,081 | -10 | 2 | 4 |
16/26
| Quarterly Statement Q3 2025 |
| (E.6) | Reconciliation of Non-IFRS Profit Figures, Income Tax, and Key Ratios - Year-to-Date |
| € millions, unless otherwise stated | Q1-Q3 2025 | Q1-Q3 2024 | ∆ in % | ||||||||
| IFRS | Adj. | Non-IFRS |
Currency Impact |
Non-IFRS Constant Currency |
IFRS | Adj. | Non-IFRS | IFRS | Non-IFRS |
Non-IFRS Constant Currency |
|
| Profit Numbers | |||||||||||
| Operating profit (loss) | 7,276 | 314 | 7,590 | 118 | 7,708 | 2,648 | 3,069 | 5,717 | >100 | 33 | 35 |
| Other non-operating income/expense, net | 53 | 0 | 53 | -215 | 0 | -215 | NA | NA | |||
| Finance income | 1,246 | -840 | 406 | 850 | -369 | 482 | 47 | -16 | |||
| Finance costs | -859 | 285 | -575 | -726 | 222 | -504 | 18 | 14 | |||
| Financial income, net | 387 | -555 | -168 | 124 | -147 | -23 | >100 | >100 | |||
| Profit (loss) before tax | 7,715 | -241 | 7,474 | 2,557 | 2,922 | 5,479 | >100 | 36 | |||
| Income tax expense | -2,119 | -75 | -2,194 | -1,023 | -796 | -1,819 | >100 | 21 | |||
| Profit (loss) after tax | 5,596 | -316 | 5,280 | 1,534 | 2,126 | 3,660 | >100 | 44 | |||
| Attributable to owners of parent | 5,481 | -203 | 5,278 | 1,523 | 2,134 | 3,657 | >100 | 44 | |||
| Attributable to non-controlling interests | 115 | -114 | 2 | 11 | -8 | 3 | >100 | -42 | |||
| Key Ratios | |||||||||||
| Operating margin (in %) | 26.8 | 28.0 | 27.9 | 10.7 | 23.1 | 16.2pp | 4.9pp | 4.8pp | |||
| Effective tax rate (in %)1 | 27.5 | 29.4 | 40.0 | 33.2 | -12.5pp | -3.8pp | |||||
| Earnings per share, basic (in €) | 4.70 | 4.53 | 1.31 | 3.13 | >100 | 44 | |||||
1 The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in the first nine months of 2025 mainly resulted from tax effects of equity securities. The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in the first nine months of 2024 mainly resulted from tax effects of restructuring expenses and acquisition-related charges.
17/26
| Quarterly Statement Q3 2025 |
| (E.7) | Reconciliation of Free Cash Flow |
| € millions, unless otherwise stated | Q1-Q3 2025 | Q1-Q3 2024 |
| Net cash flows from operating activities | 7,859 | 5,791 |
| Purchase of intangible assets and property, plant, and equipment | -559 | -528 |
| Proceeds from sales of intangible assets and property, plant, and equipment | 110 | 80 |
| Payments of lease liabilities | -204 | -213 |
| Free cash flow | 7,205 | 5,130 |
| Net cash flows from investing activities | -747 | -197 |
| Net cash flows from financing activities | -7,442 | -3,618 |
18/26
| Quarterly Statement Q3 2025 |
| (F) | Non-IFRS Adjustments - Actuals and Estimates |
| € millions, unless otherwise stated |
Estimated Amounts for Full Year 2025 |
Q3 2025 | Q1-Q3 2025 | Q3 2024 | Q1-Q3 2024 |
| Profit (loss) before tax (IFRS) | 2,745 | 7,715 | 2,151 | 2,557 | |
| Adjustment for acquisition-related charges | 380-460 | 96 | 313 | 90 | 256 |
| Adjustment for restructuring | 0-25 | -18 | 0 | -52 | 2,821 |
| Adjustment for regulatory compliance matter expenses | 0 | 0 | 0 | -8 | -8 |
| Adjustment for gains and losses from equity securities, net | N/A1 | -256 | -555 | -24 | -147 |
| Profit (loss) before tax (non-IFRS) | 2,569 | 7,474 | 2,157 | 5,479 |
1 Due to the uncertainty and potential variability of gains and losses from equity securities, we cannot provide an estimate for the full year without unreasonable efforts. This item could however have a material impact on our non-IFRS measures below operating profit.
| (G) | Non-IFRS Operating Expense Adjustments by Functional Areas |
| € millions | Q3 2025 | Q3 2024 | ||||||||
| IFRS |
Acquisition- Related |
Restruc- turing |
RCM1 | Non-IFRS | IFRS |
Acquisition -Related |
Restruc-turing | RCM1 | Non-IFRS | |
| Cost of cloud | -1,342 | 24 | 0 | 0 | -1,318 | -1,167 | 25 | 0 | 0 | -1,142 |
| Cost of software licenses and support | -303 | 0 | 0 | 0 | -303 | -306 | 0 | 0 | 0 | -306 |
| Cost of services | -760 | 0 | 0 | 0 | -759 | -786 | 0 | 0 | 0 | -785 |
| Research and development | -1,644 | 1 | 0 | 0 | -1,643 | -1,568 | 0 | 0 | 0 | -1,568 |
| Sales and marketing | -2,185 | 67 | 0 | 0 | -2,118 | -2,098 | 59 | 0 | -8 | -2,047 |
| General and administration | -364 | 4 | 0 | 0 | -360 | -361 | 6 | 0 | 0 | -356 |
| Restructuring | 18 | 0 | -18 | 0 | 0 | 52 | 0 | -52 | 0 | 0 |
| Other operating income/expense, net | -8 | 0 | 0 | 0 | -8 | -22 | 0 | 0 | 0 | -22 |
| Total operating expenses | -6,589 | 96 | -18 | 0 | -6,510 | -6,256 | 90 | -52 | -8 | -6,226 |
1 Regulatory Compliance Matters
| € millions | Q1-Q3 2025 | Q1-Q3 2024 | ||||||||
| IFRS |
Acquisition- Related |
Restruc- turing |
RCM1 | Non-IFRS | IFRS |
Acquisition -Related |
Restruc-turing | RCM1 | Non-IFRS | |
| Cost of cloud | -3,912 | 71 | 0 | 0 | -3,841 | -3,381 | 49 | 0 | 0 | -3,332 |
| Cost of software licenses and support | -909 | 0 | 0 | 0 | -909 | -943 | 0 | 0 | 0 | -943 |
| Cost of services | -2,397 | 1 | 0 | 0 | -2,396 | -2,485 | 0 | 0 | 0 | -2,484 |
| Research and development | -4,935 | 4 | 0 | 0 | -4,931 | -4,839 | 3 | 0 | 0 | -4,835 |
| Sales and marketing | -6,576 | 230 | 0 | 0 | -6,346 | -6,594 | 189 | 0 | -8 | -6,413 |
| General and administration | -1,083 | 6 | 0 | 0 | -1,077 | -1,057 | 14 | 0 | 0 | -1,043 |
| Restructuring | 0 | 0 | 0 | 0 | 0 | -2,821 | 0 | 2,821 | 0 | 0 |
| Other operating income/expense, net | -27 | 0 | 0 | 0 | -27 | -31 | 0 | 0 | 0 | -31 |
| Total operating expenses | -19,840 | 313 | 0 | 0 | -19,527 | -22,150 | 256 | 2,821 | -8 | -19,081 |
1 Regulatory Compliance Matters
19/26
| Quarterly Statement Q3 2025 |
If not presented in a separate line item in our income statement, the restructuring expenses would break down as follows:
| € millions | Q3 2025 | Q1-Q3 2025 | Q3 2024 | Q1-Q3 2024 |
| Cost of cloud | -1 | 1 | 1 | -94 |
| Cost of software licenses and support | 1 | 4 | 0 | -80 |
| Cost of services | 2 | 10 | 8 | -525 |
| Research and development | 4 | 20 | 12 | -1,088 |
| Sales and marketing | 12 | -18 | 12 | -894 |
| General and administration | 0 | -18 | 18 | -141 |
| Restructuring expenses | 18 | 0 | 52 | -2,821 |
20/26
| Quarterly Statement Q3 2025 |
Disaggregations
| (H) | Segment Reporting |
| (H.1) | Segment Policies and Changes |
SAP is organized in two operating segments, the Applications, Technology & Support (ATS) segment and the Core Services segment:
| - | The ATS segment represents SAP's cohesive product portfolio which is holistically steered and commercialized. It primarily generates revenue from cloud subscriptions and from the sale of software licenses and support offerings, and it incurs cost for support, operating our solutions, and the provision of infrastructure. The revenue and cost for services arise for SAP's training business which is highly integrated with SAP's product portfolio. |
| - | The Core Services segment supports SAP's product portfolio by enabling customers to transform their business and accelerate the adoption of innovations. Revenues are mainly generated from professional consulting services and premium support services. Cost is incurred primarily for the delivery of those services. The Core Services segment does not reflect the full services business. |
The segment information for comparative prior periods was restated to conform with the new segment composition.
| (H.2) | Segment Reporting - Quarter |
Applications, Technology & Support (ATS)
|
€ millions (non-IFRS) |
Q3 2025 | Q3 2024 | |
|
Actual Currency |
Constant Currency |
Actual Currency |
|
| Cloud | 5,290 | 5,504 | 4,351 |
| Software licenses | 161 | 165 | 285 |
| Software support | 2,565 | 2,644 | 2,793 |
| Software licenses and support | 2,726 | 2,809 | 3,078 |
| Cloud and software | 8,016 | 8,313 | 7,429 |
| Services | 66 | 67 | 96 |
| Total segment revenue | 8,082 | 8,380 | 7,524 |
| Cost of cloud | -1,281 | -1,341 | -1,104 |
| Cost of software licenses and support | -271 | -280 | -279 |
| Cost of cloud and software | -1,553 | -1,622 | -1,383 |
| Cost of services | -84 | -87 | -89 |
| Total cost of revenue | -1,636 | -1,709 | -1,472 |
| Segment gross profit | 6,446 | 6,671 | 6,053 |
| Other segment expenses | -3,090 | -3,203 | -3,039 |
| Segment profit (loss) | 3,356 | 3,467 | 3,014 |
Core Services
|
€ millions (non-IFRS) |
Q3 2025 | Q3 2024 | |
|
Actual Currency |
Constant Currency |
Actual Currency |
|
| Services | 994 | 1,032 | 945 |
| Total segment revenue | 994 | 1,032 | 945 |
| Cost of cloud | -27 | -28 | -24 |
| Cost of software licenses and support | -9 | -9 | -10 |
| Cost of cloud and software | -36 | -37 | -34 |
| Cost of services | -656 | -678 | -668 |
| Total cost of revenue | -692 | -715 | -702 |
| Segment gross profit | 302 | 317 | 242 |
| Other segment expenses | -144 | -149 | -140 |
| Segment profit (loss) | 158 | 168 | 102 |
21/26
| Quarterly Statement Q3 2025 |
| (H.3) | Segment Reporting - Year-to-Date |
Applications, Technology & Support
|
€ millions (non-IFRS) |
Q1-Q3 2025 | Q1-Q3 2024 | |
|
Actual Currency |
Constant Currency |
Actual Currency |
|
| Cloud | 15,413 | 15,738 | 12,433 |
| Software licenses | 538 | 546 | 716 |
| Software support | 7,969 | 8,086 | 8,414 |
| Software licenses and support | 8,507 | 8,633 | 9,130 |
| Cloud and software | 23,920 | 24,370 | 21,563 |
| Services | 216 | 220 | 305 |
| Total segment revenue | 24,136 | 24,591 | 21,867 |
| Cost of cloud | -3,712 | -3,811 | -3,223 |
| Cost of software licenses and support | -824 | -841 | -863 |
| Cost of cloud and software | -4,537 | -4,652 | -4,085 |
| Cost of services | -266 | -270 | -289 |
| Total cost of revenue | -4,802 | -4,923 | -4,374 |
| Segment gross profit | 19,334 | 19,668 | 17,493 |
| Other segment expenses | -9,522 | -9,718 | -9,517 |
| Segment profit (loss) | 9,811 | 9,950 | 7,976 |
Core Services
|
€ millions (non-IFRS) |
Q1-Q3 2025 | Q1-Q3 2024 | |
|
Actual Currency |
Constant Currency |
Actual Currency |
|
| Services | 2,979 | 3,032 | 2,930 |
| Total segment revenue | 2,979 | 3,033 | 2,930 |
| Cost of cloud | -87 | -89 | -76 |
| Cost of software licenses and support | -29 | -30 | -37 |
| Cost of cloud and software | -116 | -119 | -113 |
| Cost of services | -2,069 | -2,107 | -2,107 |
| Total cost of revenue | -2,185 | -2,226 | -2,220 |
| Segment gross profit | 794 | 807 | 710 |
| Other segment expenses | -430 | -439 | -460 |
| Segment profit (loss) | 364 | 367 | 250 |
22/26
| Quarterly Statement Q3 2025 |
| (I) | Revenue by Region (IFRS and Non-IFRS) |
| (I.1) | Revenue by Region (IFRS and Non-IFRS) - Quarter |
| € millions | Q3 2025 | Q3 2024 | ∆ in % | |||
| Actual currency |
Currency Impact |
Constant Currency |
Actual currency | Actual currency |
Constant Currency |
|
| Cloud Revenue by Region | ||||||
| EMEA | 2,271 | 24 | 2,295 | 1,742 | 30 | 32 |
| Americas | 2,247 | 140 | 2,387 | 1,989 | 13 | 20 |
| APJ | 772 | 51 | 822 | 620 | 24 | 33 |
| Cloud revenue | 5,290 | 214 | 5,504 | 4,351 | 22 | 27 |
| Cloud and Software Revenue by Region | ||||||
| EMEA | 3,750 | 27 | 3,778 | 3,370 | 11 | 12 |
| Americas | 3,102 | 195 | 3,297 | 2,982 | 4 | 11 |
| APJ | 1,164 | 75 | 1,238 | 1,077 | 8 | 15 |
| Cloud and software revenue | 8,016 | 297 | 8,313 | 7,429 | 8 | 12 |
| Total Revenue by Region | ||||||
| Germany | 1,455 | 1 | 1,456 | 1,282 | 13 | 14 |
| Rest of EMEA | 2,790 | 30 | 2,820 | 2,574 | 8 | 10 |
| Total EMEA | 4,245 | 31 | 4,276 | 3,856 | 10 | 11 |
| United States | 2,822 | 170 | 2,992 | 2,739 | 3 | 9 |
| Rest of Americas | 724 | 53 | 777 | 679 | 7 | 14 |
| Total Americas | 3,546 | 223 | 3,769 | 3,418 | 4 | 10 |
| Japan | 387 | 20 | 408 | 357 | 9 | 14 |
| Rest of APJ | 898 | 62 | 961 | 839 | 7 | 15 |
| Total APJ | 1,285 | 83 | 1,368 | 1,195 | 8 | 14 |
| Total revenue | 9,076 | 336 | 9,413 | 8,470 | 7 | 11 |
23/26
| Quarterly Statement Q3 2025 |
| (I.2) | Revenue by Region (IFRS and Non-IFRS) - Year-to-Date |
| € millions | Q1-Q3 2025 | Q1-Q3 2024 | ∆ in % | |||
| Actual Currency |
Currency Impact |
Constant Currency |
Actual Currency | Actual Currency |
Constant Currency |
|
| Cloud Revenue by Region | ||||||
| EMEA | 6,466 | 21 | 6,487 | 4,972 | 30 | 30 |
| Americas | 6,693 | 230 | 6,922 | 5,751 | 16 | 20 |
| APJ | 2,255 | 74 | 2,329 | 1,710 | 32 | 36 |
| Cloud revenue | 15,413 | 325 | 15,738 | 12,433 | 24 | 27 |
| Cloud and Software Revenue by Region | ||||||
| EMEA | 10,958 | 23 | 10,981 | 9,695 | 13 | 13 |
| Americas | 9,417 | 319 | 9,736 | 8,757 | 8 | 11 |
| APJ | 3,545 | 109 | 3,654 | 3,111 | 14 | 17 |
| Cloud and software revenue | 23,920 | 451 | 24,371 | 21,563 | 11 | 13 |
| Total Revenue by Region | ||||||
| Germany | 4,247 | -1 | 4,245 | 3,802 | 12 | 12 |
| Rest of EMEA | 8,190 | 26 | 8,216 | 7,377 | 11 | 11 |
| Total EMEA | 12,436 | 25 | 12,461 | 11,180 | 11 | 11 |
| United States | 8,603 | 229 | 8,832 | 8,108 | 6 | 9 |
| Rest of Americas | 2,162 | 134 | 2,296 | 2,038 | 6 | 13 |
| Total Americas | 10,764 | 364 | 11,128 | 10,146 | 6 | 10 |
| Japan | 1,177 | 10 | 1,187 | 1,018 | 16 | 17 |
| Rest of APJ | 2,739 | 110 | 2,849 | 2,454 | 12 | 16 |
| Total APJ | 3,916 | 120 | 4,036 | 3,472 | 13 | 16 |
| Total revenue | 27,116 | 509 | 27,625 | 24,798 | 9 | 11 |
24/26
| Quarterly Statement Q3 2025 |
| (J) | Employees by Region and Functional Areas |
| Full-time equivalents | 09/30/2025 | 09/30/2024 | ||||||
| EMEA | Americas | APJ | Total | EMEA | Americas | APJ | Total | |
| Cloud and software | 4,600 | 4,514 | 5,348 | 14,462 | 4,510 | 4,256 | 4,592 | 13,357 |
| Services | 8,289 | 4,690 | 5,920 | 18,899 | 8,394 | 4,686 | 5,503 | 18,582 |
| Research and development | 18,375 | 5,895 | 13,639 | 37,909 | 18,422 | 5,623 | 12,729 | 36,774 |
| Sales and marketing | 11,951 | 9,923 | 5,039 | 26,914 | 12,078 | 9,742 | 5,149 | 26,969 |
| General and administration | 3,981 | 1,915 | 1,362 | 7,258 | 3,781 | 1,796 | 1,301 | 6,878 |
| Infrastructure | 3,143 | 1,152 | 993 | 5,289 | 2,964 | 1,156 | 903 | 5,023 |
| SAP Group (09/30) | 50,339 | 28,089 | 32,302 | 110,730 | 50,149 | 27,257 | 30,177 | 107,583 |
| Thereof acquisitions1 | 288 | 74 | 13 | 375 | 413 | 414 | 86 | 912 |
| SAP Group (nine months' end average) | 49,328 | 27,794 | 31,581 | 108,702 | 49,475 | 27,389 | 29,819 | 106,683 |
1 Acquisitions closed between January 1 and September 30 of the respective year.
25/26
| Quarterly Statement Q3 2025 |
Other Disclosures
| (K) | Share-Based Payment |
SAP's share-based payment expenses included in SAPs non-IFRS operating expenses break down as follows:
| € millions | Q3 2025 | Q1-Q3 2025 | Q3 2024 | Q1-Q3 2024 |
| Cost of cloud | -27 | -86 | -31 | -104 |
| Cost of software licenses and support | -8 | -24 | -9 | -31 |
| Cost of services | -64 | -197 | -78 | -269 |
| Research and development | -156 | -481 | -169 | -572 |
| Sales and marketing | -147 | -478 | -199 | -675 |
| General and administration | -28 | -112 | -49 | -164 |
| Share-based payment expenses | -429 | -1,379 | -535 | -1,815 |
The decrease in share-based payment expenses is mainly due to a reduction in the SAP share price as compared to an increase in 2024 (around -€8 in the first nine months of 2025; around €65 in the first nine months of 2024) as well as lower grant volumes as compared to prior years. Income for the hedging of cash-settled share-based compensation programs amounted to €14 million in the first nine months of 2025 (Q1-Q3/2024: €0 million). For more information about share-based payment expenses, see the Notes to the Consolidated Half-Year Financial Statements, Note (B.3).
Additionally, in the third quarter of 2025 SAP reduced its expenses of €7 million (Q3/2024: €17 million) relating to accelerated share-based payment expenses triggered by the transformation program. In the first nine months of 2025 expenses amounting to €12 million (Q1-Q3/2024: €172 million) have been recognized. These share-based payment expenses are classified as restructuring expenses in SAP's consolidated income statements.
Associated share-based payments in the first nine months of 2025 amounted to €162 million (Q1-Q3/2024: €143 million) and are classified as a decrease in provisions and other liabilities in SAP's consolidated statements of cash flows.
| (L) | Business Combinations |
On August 1, 2025, SAP announced its intention to acquire 100% of SmartRecruiters, Inc. ("SmartRecruiters"), a leading talent acquisition software provider.
The transaction closed on September 11, 2025, following satisfaction of regulatory and other approvals. The acquisition will strengthen the SAP SuccessFactors Human Capital Management (HCM) suite. SmartRecruiter's products improve employee hiring decision-making and reduce time to hire. Embedded analytics and AI-powered recommendations from SAP and SmartRecruiters will provide valuable insights into talent pools, avoid hiring bottlenecks, and improve workforce planning. The preliminary consideration transferred amounted to approximately €751 million.
As the SmartRecruiters acquisition closed shortly before September 30, 2025, we are still in the process of identifying and measuring the SmartRecruiters assets and liabilities. Thus, the accounting for the SmartRecruiters acquisition is preliminary. This primarily relates to intangibles assets and tax assets and liabilities, but also to certain acquisition accounting related matters such as the consideration transferred and certain accounting alignments.
In the third quarter of 2025, the contribution of SmartRecruiters to the consolidated income statement (IFRS and non-IFRS) and cash flows from operating activities was immaterial.
| (M) | Tax-related Litigation |
Due to a recent change in case law, SAP´s other tax litigation was affected for prior years. This resulted in an increase of other taxes by €98 million negatively affecting SAP's operating profit and a compensating benefit in SAP's income tax expense in the third quarter of 2025. As payments were made over the years, the impact on cash flows from operating activities 2025 is immaterial.
The other tax litigation was disclosed among the contingent liabilities in the Notes to the Consolidated Half-Year Financial Statements, Note (G.1).
26/26
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