SAP AG reported a 7% year-over-year increase in cloud revenue during Q3 2025, reaching €3.2 billion, signaling sustained momentum in its digital transformation strategy. The company continues to invest heavily in AI-driven enterprise solutions amid global economic uncertainty.
- SAP's cloud revenue reached €3.2 billion in Q3 2025, a 7% year-over-year increase.
- Operating profit margin expanded to 28.3% in Q3 2025.
- Over 1,800 enterprise clients now use SAP’s AI-integrated platforms.
- Customer retention rate in cloud services stands at 94%.
- SAP projects cloud revenue to surpass €4 billion in 2026.
- SAP’s stock has gained 12% year-to-date as of December 2025.
SAP AG has demonstrated resilience in its transition to cloud-centric operations, posting €3.2 billion in cloud revenue for the third quarter of 2025—a 7% rise compared to the same period last year. This growth underscores the company’s ongoing shift from legacy on-premise systems to subscription-based cloud platforms, particularly in its S/4HANA suite and SAP SuccessFactors modules. Total revenue for the quarter reached €9.4 billion, with operating profit margin expanding to 28.3%, reflecting improved cost discipline and higher-margin cloud offerings. The company’s investment in artificial intelligence is a key driver of its long-term growth thesis. SAP announced in October 2025 the integration of generative AI capabilities into its ERP and analytics platforms, aiming to enhance automation across supply chain, finance, and human resources functions. These features are already being adopted by over 1,800 enterprise clients globally, with an average customer retention rate of 94% in cloud services. SAP’s stock, trading under the ticker SAP on the Frankfurt Stock Exchange, has risen 12% year-to-date as of December 2025, outperforming the broader DAX index. Analysts note that the company’s focus on high-growth markets, including Southeast Asia and Latin America, where cloud adoption rates are accelerating, could unlock additional revenue streams. SAP’s guidance for 2026 projects cloud revenue to exceed €4 billion, assuming continued demand for integrated business applications. Market participants are closely watching SAP’s ability to maintain momentum amid rising competition from Microsoft Dynamics 365 and Oracle NetSuite. However, the company’s strong balance sheet—$17.6 billion in cash and equivalents—and strategic partnerships with AWS and Google Cloud continue to support its competitive edge.