SAP overcomes tough begin to publish 8% progress

SAP has reported income of €36.8bn for 2025, up 8% on 2024, regardless of what Christian Klein, chief government workplace, known as a “tough begin to the yr” brought on by geopolitical tariff turmoil engendered by the US Trump presidency, in a press convention.

The provider additionally reported This fall income of €9.864bn, up 3% on the identical year-ago quarter.

In an announcement, Klein mentioned: “This fall was a robust cloud quarter, with bookings leading to 30% Complete Cloud Backlog progress to a report €77bn. The numerous Present Cloud Backlog progress in This fall has laid a robust basis for accelerating whole income progress by means of 2027. SAP Enterprise AI has change into a important driver for progress because it was included in two thirds of our This fall cloud order entry, mixed with robust AI adoption throughout the ERP Suite.”

Dominik Asam, chief monetary officer, SAP added: “We closed 2025 on a excessive observe, delivering robust working revenue and free money stream forward of our expectations. This efficiency displays centered execution, monetary self-discipline, and the continued belief our prospects place in us because the North Star for his or her digital transformation. As evidenced by continued robust progress, effectively forward of the market, in SaaS and PaaS, we’re assured that our technique and operational self-discipline will proceed to drive long-term worth creation.”

Within the press convention, Klein confused SAP’s place as “by far the largest tech firm in Europe”, and the significance of that with respect to digital sovereignty, a sizzling matter resulting from present geopolitical circumstances. He additionally mentioned over-regulation in Europe, compared with the US and China, is retarding the sufficiently speedy progress of know-how startups – in an business which, he repeatedly mentioned, is the “quickest transferring” of all.

He additionally cautioned that European nations might want to talent up their folks in synthetic intelligence. “China and the US are transferring superfast there”.

The provider famous its announcement, in November, of a stage in what it calls its “imaginative and prescient for European digital sovereignty with the launch of EU AI Cloud. SAP now affords a very full-stack sovereign cloud providing, empowering prospects to pick the correct stage of sovereignty and deployment for his or her wants, whether or not in SAP’s personal knowledge centres, on trusted European infrastructure or as a totally managed answer on-site”.

By way of probably the most burning IT business matter of as we speak, the rise and certain growth of synthetic intelligence, he and Asam argued that SAP will win in enterprise AI, since its know-how holds its prospects enterprise knowledge of their enterprise purposes, whereas firms on the infrastructure layer of chips and cloud knowledge centre provision won’t.

Cloud income for the complete yr was, said SAP, up 23% to €21.02bn. Its Cloud ERP Suite income was up 28% to €18.12bn. Cloud and software program income was up 9% to €32.54bn and companies income was down 2% to €4.26bn.

The provider reported progress in its ‘Rise with SAP’ programme, aimed toward transferring prospects to the cloud and to make use of its ERP system, S/4, based mostly on its in-memory database Hana. Rise was launched as a ‘enterprise transformation as a service’ programme in 2021.

Rise prospects who “continued to decide on” the programme in This fall 2025 reportedly included Adidas, Bertelsmann, BioNTech, Daimler Truck, Deloitte, Électricité de France, Fresenius Digital Know-how, H&M Group, His Majesty’s Income & Customs, Nokia, Pirelli, Toyota, Ultragaz, and Weir Group.

Within the press convention, Klein highlighted H&M and healthcare know-how firm Fresenius as customers of SAP’s AI capabilities, which embody its generative AI-based Joule assistants that may handle AI brokers that perform duties throughout the purposes in its cloud Enterprise Suite.

He mentioned H&M is utilizing SAP AI capabilities to supply a extra personalised procuring expertise and Fresenius to avoid wasting time for medical doctors and nurses in affected person administration.

The provider additionally said that, amongst others, Lockheed Martin, Rolls-Royce SMR, and SA Energy Networks went stay on SAP S/4 Hana Cloud within the fourth quarter. Moreover, KPMG, Müller Holding, and Snowflake selected ‘Develop with SAP’, a mid-market programme for patrons wishing to maneuver to the cloud, launched in 2023.

Within the fourth quarter, SAP mentioned its cloud income efficiency was notably robust in APJ and EMEA and strong within the Americas area. The UK, Brazil, Canada, Germany, India, Italy, South Korea, and Spain had what the provider mentioned was excellent efficiency.

SAP additionally famous a collaboration with Snowflake, introduced in November, reportedly enabling prospects to make use of Snowflake’s AI Information Cloud and SAP Enterprise Information Cloud collectively. It additionally famous elevated collaboration with Bleu, Capgemini and Mistral AI in France, introduced in November.