SAP delivered third quarter revenue growth of 7% with cloud sales up 22%. The company said its 2025 cloud revenue will be at the lower end of its range of €21.6 billion to €21.9 billion.
The enterprise software giant reported third quarter net income of €2.05 billion, or €1.72 a share, on revenue of €9.08 billion. Adjusted earnings in the third quarter were €1.59 a share.
SAP CEO Christian Klein said:
"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."
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Constellation Research analyst Holger Mueller said:
"The SAP effort to upgrade its customer to S/4HANA in the cloud has slowed down remarkably. After a strong start in Q1, the argument that the need for AI is making SAP customers upgrade seems to have fizzled out. SAP did the right thing with creating the SAP Business Data Lake, but it also has created a 'wait & see' for its customer base. Now it all comes back to the out of the box value - with content in BDC, AI frameworks with Joule and back end APIs in S/4HANA. Q4 will show if SAP headed in the right direction."
By the numbers:
- SAP reported Cloud ERP suite revenue of €4.59 billion. ERP suite revenue includes RISE with SAP as well as 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.
- SaaS and PaaS revenue was €5.21 billion, up 23% from a year ago.
- In the third quarter current cloud backlog was €18.84 billion, up 23% from a year ago.
