SAP SE reported a 14% year-over-year increase in cloud revenue for fiscal 2025, reaching €8.2 billion, while maintaining a 23% operating margin. The company’s strategic shift toward subscription-based services and global expansion in AI-driven enterprise solutions are strengthening its long-term investment case.
- Cloud revenue reached €8.2 billion in fiscal 2025, up 14% YoY
- Cloud now represents 24% of SAP’s total revenue
- Operating margin held steady at 23% in fiscal 2025
- Subscription and support services account for 76% of total revenue
- SAP Business AI adoption grew 18% in North America and 16% in Europe
- Share price rose 12% in Q1 2026, with institutional ownership at 68%
SAP SE has emerged as a compelling investment opportunity amid a resilient performance across core business segments. In the fiscal year 2025, the company recorded total revenue of €33.7 billion, with cloud revenue growing to €8.2 billion—a 14% increase from the prior year. This marks a pivotal transformation in SAP’s revenue mix, where cloud now accounts for approximately 24% of total revenue, up from 18% in 2023. The shift toward recurring revenue models is a cornerstone of SAP’s strategic pivot. Subscription and support services now represent 76% of total revenue, reflecting sustained demand for integrated enterprise resource planning (ERP) and business intelligence tools. Additionally, the company reported an operating margin of 23%, underscoring disciplined cost management amid continued R&D investment. SAP’s expansion in artificial intelligence and industry-specific solutions has further amplified growth. The launch of SAP Business AI, integrated across ERP, supply chain, and finance modules, has driven adoption across manufacturing, retail, and healthcare sectors. In North America and Europe, cloud adoption rates rose by 18% and 16%, respectively, among medium- and large-sized enterprises. Market sentiment has responded positively: SAP’s share price rose 12% in the first quarter of 2026, outperforming the broader technology sector. Institutional ownership increased to 68%, signaling strong confidence among long-term investors. The company also maintains a strong balance sheet, with €14.5 billion in cash and short-term investments and a debt-to-equity ratio of 0.47.