SAP reports strong Q2 2025 results; Cloud ERP revenue soars 30%

SAP SE has released exceptionally positive results for the second quarter and half-year concluded June 30, 2025, driven by substantial growth in its cloud portfolio, and strong profitability. SAP SE observed significant growth in both cloud backlog and revenue, fueled by solid customer demand and the ongoing evolution of AI innovation.

Key Highlights from Q2 and HY 2025:

• Current cloud backlog of €18.1 billion, an increase of 22% year-over-year (28% at constant currencies) demonstrating continued future revenue predictability and continued customer confidence in SAP's cloud solutions.
• Cloud revenue growth of 24% (28% at constant currencies) demonstrates the successful execution of SAP's cloud-first strategy.
• Cloud ERP Suite revenue growth of 30% (34% at constant currencies) demonstrates the success of SAP's cloud-first strategy and successful cloud adoption of SAP's core enterprise resource offerings.
• Total revenue for the quarter rose by 9% (12% at constant currencies), reflecting broad-based strength across SAP's varied portfolio of products and services.
• IFRS operating profit was €2.5 billion, while non-IFRS operating profit was €2.6 million, reflecting an impressive increase of 32% (35% at constant currencies). This demonstrates SAP's strong operational effectiveness model and disciplined cost control. 

Our segment outlook 2025 remains unchanged, signalling confidence in the company's ability to sustain or grow its business trajectory for the rest of the year.

Christian Klein, CEO of SAP SE, noted, "We have delivered yet another quarter of outstanding results. AI innovations like Joule becoming available ‘everywhere and for everything’ and SAP Business Data Cloud as a powerful dynamo of AI are making our portfolio stronger than ever. Enterprise operations are about to enter a new paradigm, and SAP is best positioned to capture that evolution." 

Dominik Asam, CFO of SAP SE also commented, "We produced a very good Q2, with total revenue growth accelerating and exceptional profitability and free cash flow. Our performance was supported by solid underlying macro demand and prudent expenditure discipline. As we enter the second half, we are cautiously optimistic but remain vigilant on geopolitical jitters and continuing public sector influences."

The strong revenue growth in Q2 and for the first half of 2025 reinforces SAP's leadership in enterprise software and cloud, and demonstrates the company's focused commitment to innovation, with emphasis on artificial intelligence. SAP's strategy to provide value to customers by enabling them to adopt the latest technology coupled with real cloud solutions, remains effective and is generating great outcomes.