SAPGF 6-K
Sap SE (SAP)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO SECTION 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
February 3, 2026
Commission file number:
001-14251
SAP EUROPEAN COMPANY
(Translation of registrant's name into English)
Dietmar-Hopp-Allee 16
69190 Walldorf
Federal Republic of Germany
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [X] Form 40-F [ ]
SAP SE
FORM 6-K
On January 30, 2026, SAP SE, (“SAP"), filed a quarterly statement with Deutsche Boerse AG for the fourth quarter ended December 31, 2025 (the “Quarterly Statement”). The Quarterly Statement is attached as Exhibit 99.1 hereto and incorporated by reference herein.
This Quarterly Statement discloses certain non-IFRS measures. These measures are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures. The non-IFRS financial measures that we report should be considered in addition to, and not as substitutes for or superior to, revenue, operating income, cash flows, or other measures of financial performance prepared in accordance with IFRS.
Please refer to Explanations of Non-IFRS Measures online (https://www.sap.com/investors/performance-measures) for further information regarding the non-IFRS measures.
Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission (the "SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.
| 2 |
EXHIBITS
| Exhibit No. | Exhibit |
| 99.1 | Quarterly Statement dated January 29, 2026 |
| 3 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| SAP SE | ||||
| (Registrant) | ||||
| By: | /s/ Christopher Sessar | |||
| Name: | Dr. Christopher Sessar | |||
| Title: | Chief Accounting Officer | |||
| By: | /s/ Julia Zicke | |||
| Name: | Dr. Julia Zicke | |||
| Title: | Head of External Reporting and Accounting Technology | |||
Date: February 3, 2026
| 4 |
EXHIBIT INDEX
| Exhibit No. | Exhibit |
| 99.1 | Quarterly Statement dated January 29, 2026 |
| 5 |
Exhibit 99.1
 |
Quarterly Statement Q4 2025 |
|
SAP meets revenue and exceeds non-IFRS operating profit and free cash flow outlook for FY2025
Total cloud backlog up 22% and up 30% at constant currencies
Current cloud backlog up 16% and up 25% at constant currencies
Cloud revenue up 23% and up 26% at constant currencies in FY2025
Cloud ERP Suite revenue up 28% and up 32% at constant currencies in FY2025
Total revenue up 8% and up 11% at constant currencies in FY2025
IFRS operating profit up 111%, non-IFRS operating profit up 28% and up 31% at constant currencies in FY2025
SAP announces a new, two-year share repurchase program with a volume of up to €10 billion |
FY 2025 | in € millions, unless otherwise stated
1/28
|
Quarterly Statement Q4 2025 |
Walldorf, Germany – January 29, 2026
SAP SE (NYSE: SAP) announced today its financial results for the fourth quarter and fiscal year ended December 31, 2025.
|
Christian Klein, CEO: Q4 was a strong cloud quarter, with bookings resulting in 30% Total Cloud Backlog growth to a record 77 billion Euros. The significant Current Cloud Backlog growth in Q4 has laid a strong foundation for accelerating Total Revenue growth through 2027. SAP Business AI has become a main driver for growth as it was included in two thirds of our Q4 cloud order entry, combined with strong AI adoption across the ERP Suite. |
|
Dominik Asam, CFO: We closed 2025 on a high note, delivering strong operating profit and free cash flow ahead of our expectations. This performance reflects focused execution, financial discipline, and the continued trust our customers place in us as the North Star for their digital transformation. As evidenced by continued strong growth well ahead of the market in SaaS and PaaS, and our ability to bring such growth down to the bottom line and Free Cash Flow, we are confident that our strategy and operational discipline will continue to drive long-term value creation. |
Financial Performance
Group results at a glance – Fourth quarter 2025
| IFRS | Non-IFRS1 | |||||||
| € million, unless otherwise stated | Q4 2025 | Q4 2024 | ∆ in % | Q4 2025 | Q4 2024 | ∆ in % | ∆
in % const. curr. | |
| SaaS/PaaS | 5,532 | 4,585 | 21 | 5,532 | 4,585 | 21 | 27 | |
| Thereof Cloud ERP Suite2 | 4,862 | 3,948 | 23 | 4,862 | 3,948 | 23 | 30 | |
| Thereof Extension Suite3 | 670 | 636 | 5 | 670 | 636 | 5 | 10 | |
| IaaS4 | 78 | 123 | –37 | 78 | 123 | –37 | –33 | |
| Cloud revenue | 5,610 | 4,708 | 19 | 5,610 | 4,708 | 19 | 26 | |
| Cloud and software revenue | 8,618 | 8,267 | 4 | 8,618 | 8,267 | 4 | 10 | |
| Total revenue | 9,684 | 9,377 | 3 | 9,684 | 9,377 | 3 | 9 | |
| Share of more predictable revenue (in %) | 84 | 81 | 3pp | 84 | 81 | 3pp | ||
| Cloud gross profit | 4,106 | 3,429 | 20 | 4,185 | 3,458 | 21 | 27 | |
| Gross profit | 7,044 | 6,943 | 1 | 7,175 | 6,972 | 3 | 8 | |
| Operating profit (loss) | 2,554 | 2,016 | 27 | 2,829 | 2,436 | 16 | 21 | |
| Profit (loss) after tax | 1,896 | 1,616 | 17 | 1,896 | 1,619 | 17 | ||
| Earnings per share - Basic (in €) | 1.58 | 1.37 | 15 | 1.62 | 1.40 | 16 | ||
| Net cash flows from operating activities | 1,297 | –584 | NA | |||||
| Free cash flow | 1,034 | –908 | NA | |||||
1 For a breakdown of the individual adjustments see table “Non-IFRS Operating Expense Adjustments by Functional Areas” in this Quarterly Statement.
2 Cloud ERP Suite references the portfolio of strategic Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) solutions that are tightly integrated with our core ERP solutions and are included in key commercial packages, such as RISE with SAP. Further, Cloud ERP Suite also includes cloud-based capabilities enabling our customers’ ERP landscapes and their cloud transformation. The following offerings contribute to Cloud ERP Suite revenue: 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.
3 Extension Suite references SAP’s remaining SaaS and PaaS solutions that supplement and extend the functional coverage of the Cloud ERP Suite.
4 Infrastructure as a service (IaaS): The major portion of IaaS comes from SAP HANA Enterprise Cloud.
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Quarterly Statement Q4 2025 |
Group results at a glance – Full year 2025
| IFRS | Non-IFRS1 | |||||||
| € million, unless otherwise stated | Q1–Q4 2025 |
Q1-Q4 2024 |
∆ in % | Q1–Q4 2025 |
Q1-Q4 2024 |
∆ in % | ∆
in % const. curr. | |
| SaaS/PaaS | 20,678 | 16,601 | 25 | 20,678 | 16,601 | 25 | 28 | |
| Thereof Cloud ERP Suite revenue2 | 18,119 | 14,165 | 28 | 18,119 | 14,165 | 28 | 32 | |
| Thereof Extension Suite revenue3 | 2,559 | 2,436 | 5 | 2,559 | 2,436 | 5 | 8 | |
| IaaS4 | 345 | 540 | –36 | 345 | 540 | –36 | –34 | |
| Cloud revenue | 21,023 | 17,141 | 23 | 21,023 | 17,141 | 23 | 26 | |
| Cloud and software revenue | 32,538 | 29,830 | 9 | 32,538 | 29,830 | 9 | 12 | |
| Total revenue | 36,800 | 34,176 | 8 | 36,800 | 34,176 | 8 | 11 | |
| Share of more predictable revenue (in %) | 86 | 83 | 3pp | 86 | 83 | 3pp | ||
| Cloud gross profit | 15,607 | 12,481 | 25 | 15,757 | 12,559 | 25 | 29 | |
| Gross profit | 26,942 | 24,932 | 8 | 27,145 | 25,011 | 9 | 11 | |
| Operating profit (loss) | 9,830 | 4,665 | >100 | 10,419 | 8,153 | 28 | 31 | |
| Profit (loss) after tax | 7,492 | 3,150 | >100 | 7,176 | 5,279 | 36 | ||
| Earnings per share - Basic (in €) | 6.28 | 2.68 | >100 | 6.15 | 4.53 | 36 | ||
| Net cash flows from operating activities | 9,156 | 5,207 | 76 | |||||
| Free cash flow | 8,239 | 4,222 | 95 | |||||
1 For a breakdown of the individual adjustments see table “Non-IFRS Operating Expense Adjustments by Functional Areas” in this Quarterly Statement.
2 Cloud ERP Suite references the portfolio of strategic Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) solutions that are tightly integrated with our core ERP solutions and are included in key commercial packages, such as RISE with SAP. Further, Cloud ERP Suite also includes cloud-based capabilities enabling our customers’ ERP landscapes and their cloud transformation. The following offerings contribute to Cloud ERP Suite revenue: 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.
3 Extension Suite references SAP’s remaining SaaS and PaaS solutions that supplement and extend the functional coverage of the Cloud ERP Suite.
4 Infrastructure as a service (IaaS): The major portion of IaaS comes from SAP HANA Enterprise Cloud.
Financial Highlights1
Fourth Quarter 2025
In the fourth quarter, current cloud backlog grew by 16% to €21.05 billion and was up 25% at constant currencies. Large transformational deals with high cloud revenue ramps in outer years and termination for convenience clauses required by law negatively impacted fourth quarter constant currency current cloud backlog growth by approximately 1 percentage point.
Cloud revenue was up 19% to €5.61 billion and up 26% at constant currencies. Cloud ERP Suite revenue was up 23% to €4.86 billion and up 30% at constant currencies.
Software licenses revenue decreased by 34% to €0.45 billion and was down 31% at constant currencies. Cloud and software revenue was up 4% to €8.62 billion and up 10% at constant currencies. Services revenue was down 4% to €1.07 billion and flat at constant currencies. Total revenue was up 3% to €9.68 billion and up 9% at constant currencies.
The share of more predictable revenue increased by 3 percentage points to 84%.
IFRS cloud gross profit was up 20% to €4.11 billion. Non-IFRS cloud gross profit was up 21% to €4.18 billion and was up 27% at constant currencies. IFRS cloud gross margin was up 0.4 percentage points to 73.2%, non-IFRS cloud gross margin up 1.1 percentage points to 74.6% and up 0.9 percentage points at constant currencies to 74.3%.
IFRS operating profit increased 27% to €2.55 billion and IFRS operating margin was up 4.9 percentage points to 26.4%. Non-IFRS operating profit was up 16% to €2.83 billion and was up 21% at constant currencies. Non-IFRS operating margin increased by 3.2 percentage points to 29.2% and was up 3.0 percentage points to 29.0% at constant currencies. IFRS and non-IFRS operating profit growth were negatively impacted by approximately €0.1 billion related to a 2025 workforce transformation. In addition, IFRS operating profit growth was negatively impacted by approximately €0.2 billion related to Teradata litigation expenses (see section (N) Teradata Litigation Matter).
1 The Q4 2025 results were also impacted by other effects. For details, please refer to the disclosures on page 27 of this document.
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Quarterly Statement Q4 2025 |
IFRS earnings per share (basic) increased 15% to €1.58. Non-IFRS earnings per share (basic) increased 16% to €1.62. IFRS effective tax rate was 31.5% and non-IFRS effective tax rate was 33.1%. Both were mainly driven by tax effects relating to taxes for prior years.
Operating cash flow in the fourth quarter increased from -€0.58 billion to €1.30 billion and free cash flow increased from -€0.91 billion to €1.03 billion. The increase was mainly attributable to lower restructuring payments and further supported by lower payouts for share-based compensation and capex.
Full Year 2025
SAP performed against its financial outlook as follows:
| Actual 2024 | 2025
Outlook (as of January 28) |
Revised
2025 Outlook (as of October 22) |
Actual 2025 | |
| Cloud revenue (at constant currencies) | €17.14 billion | €21.6 – 21.9 billion | €21.6
– 21.9 billion towards the lower end of the outlook range |
€21.66 billion |
| Cloud and software revenue (at constant currencies) | €29.83 billion | €33.1 – 33.6 billion | €33.1 – 33.6 billion | €33.44 billion |
| Operating profit (non-IFRS, at constant currencies) | €8.15 billion | €10.3 – 10.6 billion | €10.3
– 10.6 billion towards the upper end of the outlook range |
€10.66 billion |
| Free cash flow | €4.22 billion | approx. €8 billion | €8.0 – 8.2 billion | €8.24 billion |
| Effective tax rate (non-IFRS) | 32.3% | approx. 32% | approx. 32% | 30.4% |
| Current cloud backlog (at constant currencies) | 29% | to slightly decelerate | to slightly decelerate | 25% |
As of December 31, total cloud backlog was up 22% to €77.29 billion and up 30% at constant currencies.
Cloud revenue for the full year was up 23% to €21.02 billion and up 26% at constant currencies. Cloud ERP Suite revenue was up 28% to €18.12 billion and up 32% at constant currencies. Subscription revenue2 was up 22% to €21.33 billion and up 26% at constant currencies. Software licenses revenue was down 29% to €0.99 billion and down 27% at constant currencies. Cloud and software revenue was up 9% to €32.54 billion and up 12% at constant currencies. Services revenue was down 2% to €4.26 billion and up 1% at constant currencies. Total revenue was up 8% to €36.80 billion and up 11% at constant currencies.
The share of more predictable revenue increased by 3 percentage points year over year to 86% for the full year 2025.
IFRS cloud gross profit was up 25% to €15.61 billion. Non-IFRS cloud gross profit was up 25% to €15.76 billion and was up 29% at constant currencies. IFRS cloud gross margin was up 1.4 percentage points to 74.2%, non-IFRS cloud gross margin up 1.7 percentage points to 75.0% and up 1.6 percentage points at constant currencies.
IFRS operating profit was up 111% to €9.83 billion and IFRS operating margin increased by 13.1 percentage points to 26.7%. IFRS operating profit growth was positively impacted by a restructuring expense decline of approximately €3.1 billion as compared to full year 2024 in connection with the 2024 transformation program and negatively impacted by approximately €0.2 billion related to Teradata litigation expenses (see section (N) Teradata Litigation Matter). Non-IFRS operating profit increased by 28% to €10.42 billion and increased by 31% at constant currencies, non-IFRS operating margin increased by 4.5 percentage points to 28.3% and was up 4.3 percentage points to 28.2% at constant currencies. IFRS and non-IFRS operating profit growth were negatively impacted by approximately €0.1 billion as a result of a change in case law that affected SAP's other tax litigation as well as approximately €0.2 billion related to a 2025 workforce transformation.
IFRS earnings per share (basic) increased by 135% to €6.28 and non-IFRS earnings per share (basic) increased 36% to €6.15. IFRS effective tax rate was 28.5% and non-IFRS effective tax rate was 30.4%. The IFRS effective tax rate is lower than the non-IFRS effective tax rate due to tax benefits from tax-exempt income.
For the full year, operating cash flow was up 76% to €9.16 billion and free cash flow increased by 95% to €8.24 billion. The increase was mainly attributable to higher profitability and to lower payments for restructuring and share-based compensation. At year end, net liquidity was €3.38 billion.
2 The subscription revenue measure is the sum of cloud revenue and revenue from time-based on-premise software licenses, which allow our customers to use our software for a specific, predefined period, and the associated software support. Revenue from time-based on-premise licenses is recognized at a point in time, whereas revenue from the associated software support is recognized over time.
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Quarterly Statement Q4 2025 |
Non-Financial Performance 2025
In 2025, our Customer NPS decreased 3 points year over year to 9 (2024: 12), which is below our target range of 12 to 16. The decrease was driven primarily by lower NPS scores from on-premise customers who have yet to transition to cloud. Overall NPS scores for cloud-oriented customers remained steady year over year, while increasing in the enterprise segment.
The Employee Engagement Index for the full year 2025 increased 2 percentage points year over year to 76% (2024: 74%), at the midpoint of the target range of 74% to 78%.
The Business Health Culture Index increased one percentage point to 81% (2024: 80%), at the midpoint of the target range of 80% to 82%.
Total carbon emissions decreased to 6.3 Mt in 2025 (2024: 6.9 Mt), in line with our guidance for a steady decrease across the relevant value chain.
New Share Repurchase Program
Following SAP’s strong free cash flow generation, the Executive Board and the Supervisory Board have authorized a new share repurchase program with a volume of up to €10 billion. It is scheduled to start in February 2026 and expected to be completed by the end of 2027. The program will be implemented based on the authorization granted by the Annual General Meeting of SAP SE on May 11, 2023, and in compliance with the restrictions set forth therein.
The new share repurchase program follows SAP’s 2020, 2022 and 2023-2025 repurchases of around 56 million shares for about €8.0 billion.
2024 Transformation Program: Focus on scalability of operations and key strategic growth areas
In January 2024, SAP announced a company-wide restructuring program which concluded as planned in the first quarter 2025. Overall expenses associated with the program were approximately €3.2 billion. Restructuring payouts amounted to €2.5 billion for the full-year 2024 and €0.8 billion for the full year 2025.
Business Highlights
|
In the fourth quarter, customers around the globe continued to choose the “RISE with SAP” journey to drive their end-to-end business transformations. These customers included: A2A, adidas, Bertelsmann, BioNTech, Daimler Truck, Deloitte, Électricité de France, Ferring Pharmaceuticals, Fresenius Digital Technology, Galenica, H&M Group, His Majesty’s Revenue & Customs, Jabil, KEBA Group, Kirin Holdings, Nokia, Pirelli, RTX, s.Oliver Group, Sigma Healthcare, Sun Chemical, Tokio Marine & Nichido Fire Insurance, Toyota, Ultragaz, and Weir Group. Dexco, Lockheed Martin, Rolls-Royce SMR, and SA Power Networks went live on SAP S/4HANA Cloud in the fourth quarter. A. Darbo, BSI, FUNKE Media Group, KPMG, Müller Holding, and Snowflake chose “GROW with SAP”, a journey helping customers adopt cloud ERP with speed, predictability, and continuous innovation. Key customer wins across SAP’s solution portfolio included: Bank of Italy, Coop, Deutsche Bundesbank, Hilti, Marubeni IT Solutions, Mondelez International, Robert Bosch, Schaeffler Group, Tech Mahindra, XXXLutz, Zalando, and Zespri Group. Fressnapf, Globe, Origin Energy, Sartorius, and WATERALIA went live on SAP solutions. In the fourth quarter, SAP’s cloud revenue performance was particularly strong in APJ and EMEA and solid in the Americas region. Brazil, Canada, Germany, India, Italy, South Korea, Spain and the United Kingdom had outstanding performance, while Australia, Japan, Mexico, Saudi Arabia, Singapore and the U.S. were particularly strong. For the full year, Brazil, France, Germany, India, Italy, South Korea and Spain all had outstanding performances in cloud revenue while China, Japan, Saudi Arabia, the United Kingdom and the U.S. were particularly strong. On November 4, SAP and Snowflake announced a new collaboration to enable organizations to leverage Snowflake’s AI Data Cloud and SAP Business Data Cloud (SAP BDC) together with semantically rich data. On November 14, SAP reaffirmed its commitment to fair competition amid EU review. On November 18, SAP announced a new collaboration with France’s AI sector, which includes new and expanded partnerships with Bleu, Capgemini and Mistral AI. On November 27, SAP announced the next stage of its vision for European digital sovereignty with the launch of EU AI Cloud. SAP now offers a truly full-stack sovereign cloud offering, empowering customers to select the right level of sovereignty and deployment for their needs, whether in SAP’s own data centers, on trusted European infrastructure or as a fully managed solution on-site. |
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Quarterly Statement Q4 2025 |
Outlook 2026
Financial Outlook 2026
For 2026, SAP expects:
| · | €25.8 – 26.2 billion cloud revenue at constant currencies (2025: €21.02 billion), up 23% to 25% at constant currencies. |
| · | €36.3 – 36.8 billion cloud and software revenue at constant currencies (2025: €32.54 billion), up 12% to 13% at constant currencies. |
| · | €11.9 – 12.3 billion non-IFRS operating profit at constant currencies (2025: €10.42 billion), up 14% to 18% at constant currencies. |
| · | Approximately €10 billion free cash flow at actual currencies (2025: €8.24 billion). |
| · | An effective tax rate (non-IFRS) of approximately 29% (2025: 30.4%)3. |
| · | Constant currency current cloud backlog growth to slightly decelerate in 2026 (2025: 25%). |
SAP further expects:
| · | Constant currency total revenue growth to accelerate through 2027. |
| · | Total operating expenses to grow at 80% to 90% of total revenue growth in 2027. |
| · | Constant currency software support revenue decline rate to accelerate in the coming years as a consequence of an acceleration of customers transforming to the cloud. |
While SAP’s 2026 financial outlook for the income statement parameters is at constant currencies (including an average exchange rate of 1.13 USD per EUR), actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the company progresses through the year, as reflected in the table below.
Currency Impact Assuming December 31, 2025 Rates Apply for 2026
| In percentage points | Q1 2026 | FY 2026 |
| Cloud revenue growth | -8.0pp | -3.0pp |
| Cloud and software revenue growth | -7.0pp | -2.5pp |
| Operating profit growth (non-IFRS) | -8.0pp | -3.5pp |
This includes an exchange rate of 1.18 USD per EUR.
Non-Financial Outlook 2026
For 2026, SAP expects:
| · | Cloud Customer Satisfaction4 (Cloud CSAT) to be in a range of 75% to 76% (2025: 75%). |
| · | The Employee Engagement Index to be in a range of 74% to 78% (2025: 76%). |
| · | The Business Health Culture Index (BHCI) to be in a range of 80% to 82% (2025: 81%). |
| · | To steadily decrease carbon emissions5 across the relevant value chain (2025: 3.5 Mt). |
3 The effective tax rate (non-IFRS) is a non-IFRS financial measure and is presented for supplemental informational purposes only. We do not provide an outlook for the effective tax rate (IFRS) due to the uncertainty and potential variability of gains and losses associated with equity securities, which are reconciling items between the two effective tax rates (non-IFRS and IFRS). These items cannot be provided without unreasonable efforts but could have a significant impact on our future effective tax rate (IFRS).
4 For 2026 and onward, SAP is adopting Cloud Customer Satisfaction (Cloud CSAT) as its new customer experience KPI, as this metric better aligns to SAP’s cloud-first strategy. For more information, see the Other Disclosures section.
5 In 2026, we will update the calculation methodology for the Use of Sold Products KPI, to a forward-looking approach that considers the estimated emissions during the lifetime of all new systems sold within a specific period. This change results in a significant decrease in reported emissions and therefore leads to a rebaselining according to the GHG-Protocol. For more information, see the Other Disclosures section.
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Quarterly Statement Q4 2025 |
Additional Information
This quarterly statement and all information therein is preliminary and unaudited. Due to rounding, numbers may not add up precisely.
SAP Performance Measures
For more information about our key growth metrics and performance measures, their calculation, their usefulness, and their limitations, please refer to the following document on our Investor Relations website: https://www.sap.com/investors/en/financial-documents-and-events/reporting-framework.html.
Webcast
SAP senior management will host a financial analyst conference call on Thursday, January 29th at 07:00 AM (CET) / 06:00 AM (GMT) / 1:00 AM (EST) / Wednesday, January 28th 10:00 PM (PST), followed by a press conference at 10:00 AM (CET) / 9:00 AM (GMT) / 4:00 AM (EST) / 1:00 AM (PST). Both conferences will be webcast on the Company’s website at https://www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the fourth quarter and full-year 2025 results can be found at https://www.sap.com/investor.
About SAP
As a global leader in enterprise applications and business AI, SAP (NYSE: SAP) stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit www.sap.com.
For more information, financial community only:
| Alexandra Steiger | +49 (6227) 7-767336 | [email protected], CET |
Follow SAP Investor Relations on LinkedIn at SAP Investor Relations.
For more information, press only:
| Marcus Winkler | +46 (6227) 7-67497 | [email protected], CET |
| Daniel Reinhardt | +49 (6227) 7-40201 | [email protected], CET |
For customers interested in learning more about SAP products:
| Global Customer Center: | +49 180 534-34-24 |
| United States Only: | +1 (800) 872-1SAP (+1-800-872-1727) |
Note to editors:
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This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP’s 2024 Annual Report on Form 20-F.
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Quarterly Statement Q4 2025 |
Contents
| Financial and Non-Financial Key Facts (IFRS and Non-IFRS) | 9 | |
| Primary Financial Statements of SAP Group (IFRS) | 11 | |
| (A) | Consolidated Income Statements | 11 |
| (B) | Consolidated Statements of Financial Position | 13 |
| (C) | Consolidated Statements of Cash Flows | 14 |
| Non-IFRS Numbers | 15 | |
| (D) | Basis of Non-IFRS Presentation | 15 |
| (E) | Reconciliation from Non-IFRS Numbers to IFRS Numbers | 15 |
| (F) | Non-IFRS Adjustments – Actuals and Estimates | 20 |
| (G) | Non-IFRS Operating Expense Adjustments by Functional Areas | 20 |
| Disaggregations | 22 | |
| (H) | Segment Reporting | 22 |
| (I) | Revenue by Region (IFRS and Non-IFRS) | 24 |
| (J) | Employees by Region and Functional Areas | 26 |
| Other Disclosures | 27 | |
| (K) | Share-Based Payment | 27 |
| (L) | Business Combinations | 27 |
| (M) | Tax-related Litigation | 27 |
| (N) | Teradata Litigation Matter | 27 |
| (O) | Changes to Our Financial Key Measures | 28 |
| (P) | Changes to Our Non-Financial Key Measures | 28 |
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Quarterly Statement Q4 2025 |
Financial and Non-Financial Key Facts
(IFRS and Non-IFRS)
| € millions, unless otherwise stated | Q1 2024 |
Q2
2024 |
Q3
2024 |
Q4 2024 |
TY
2024 |
Q1
2025 |
Q2
2025 |
Q3 2025 |
Q4
2025 |
TY
2025 |
| Revenues | ||||||||||
| Cloud | 3,928 | 4,153 | 4,351 | 4,708 | 17,141 | 4,993 | 5,130 | 5,290 | 5,610 | 21,023 |
| % change – yoy | 24 | 25 | 25 | 27 | 25 | 27 | 24 | 22 | 19 | 23 |
| % change constant currency – yoy | 25 | 25 | 27 | 27 | 26 | 26 | 28 | 27 | 26 | 26 |
| Cloud ERP Suite | 3,167 | 3,414 | 3,636 | 3,948 | 14,165 | 4,251 | 4,422 | 4,586 | 4,862 | 18,119 |
| % change – yoy | 31 | 33 | 34 | 35 | 33 | 34 | 30 | 26 | 23 | 28 |
| % change constant currency – yoy | 32 | 33 | 36 | 35 | 34 | 33 | 34 | 31 | 30 | 32 |
| Software licenses | 203 | 229 | 285 | 683 | 1,399 | 183 | 194 | 161 | 452 | 990 |
| % change – yoy | –26 | –28 | –15 | –18 | –21 | –10 | –15 | –43 | –34 | –29 |
| % change constant currency – yoy | –25 | –27 | –14 | –19 | –21 | –10 | –13 | –42 | –31 | –27 |
| Software support | 2,829 | 2,792 | 2,793 | 2,876 | 11,290 | 2,761 | 2,642 | 2,565 | 2,557 | 10,525 |
| % change – yoy | –3 | –3 | –3 | 1 | –2 | –2 | –5 | –8 | –11 | –7 |
| % change constant currency – yoy | –1 | –3 | –2 | 1 | –1 | –3 | –3 | –5 | –7 | –5 |
| Total revenue | 8,041 | 8,288 | 8,470 | 9,377 | 34,176 | 9,013 | 9,027 | 9,076 | 9,684 | 36,800 |
| % change – yoy | 8 | 10 | 9 | 11 | 10 | 12 | 9 | 7 | 3 | 8 |
| % change constant currency – yoy | 9 | 10 | 10 | 10 | 10 | 11 | 12 | 11 | 9 | 11 |
| Profits | ||||||||||
| Operating profit (loss) (IFRS) | –787 | 1,222 | 2,214 | 2,016 | 4,665 | 2,333 | 2,456 | 2,487 | 2,554 | 9,830 |
| Operating profit (loss) (non-IFRS) | 1,533 | 1,940 | 2,244 | 2,436 | 8,153 | 2,455 | 2,568 | 2,566 | 2,829 | 10,419 |
| % change - yoy | 16 | 33 | 27 | 24 | 25 | 60 | 32 | 14 | 16 | 28 |
| % change constant currency - yoy | 19 | 35 | 28 | 24 | 26 | 58 | 35 | 19 | 21 | 31 |
| Profit (loss) after tax (IFRS) | –824 | 918 | 1,441 | 1,616 | 3,150 | 1,796 | 1,749 | 2,051 | 1,896 | 7,492 |
| Profit (loss) after tax (non-IFRS) | 944 | 1,278 | 1,437 | 1,619 | 5,279 | 1,681 | 1,747 | 1,852 | 1,896 | 7,176 |
| % change - yoy | 9 | 60 | 6 | 24 | 22 | 78 | 37 | 29 | 17 | 36 |
| Margins | ||||||||||
| Cloud gross margin (IFRS, in %) | 72.2 | 73.0 | 73.2 | 72.8 | 72.8 | 74.5 | 74.7 | 74.6 | 73.2 | 74.2 |
| Cloud gross margin (non-IFRS, in %) | 72.5 | 73.3 | 73.7 | 73.5 | 73.3 | 75.0 | 75.2 | 75.1 | 74.6 | 75.0 |
| Gross margin (IFRS, in %) | 71.7 | 72.6 | 73.3 | 74.0 | 73.0 | 73.3 | 73.3 | 73.5 | 72.7 | 73.2 |
| Gross margin (non-IFRS, in %) | 71.8 | 72.7 | 73.6 | 74.3 | 73.2 | 73.6 | 73.6 | 73.8 | 74.1 | 73.8 |
| Operating margin (IFRS, in %) | –9.8 | 14.7 | 26.1 | 21.5 | 13.6 | 25.9 | 27.2 | 27.4 | 26.4 | 26.7 |
| Operating margin (non-IFRS, in %) | 19.1 | 23.4 | 26.5 | 26.0 | 23.9 | 27.2 | 28.5 | 28.3 | 29.2 | 28.3 |
| Order Entry and current cloud backlog | ||||||||||
| Current cloud backlog | 14,179 | 14,808 | 15,377 | 18,078 | 18,078 | 18,202 | 18,052 | 18,839 | 21,052 | 21,052 |
| % change – yoy | 27 | 28 | 25 | 32 | 32 | 28 | 22 | 23 | 16 | 16 |
| % change constant currency – yoy | 28 | 28 | 29 | 29 | 29 | 29 | 28 | 27 | 25 | 25 |
| Share of cloud orders greater than €5 million based on total cloud order entry volume (in %) | 52 | 52 | 64 | 68 | 63 | 54 | 53 | 63 | 71 | 65 |
| Share of cloud orders smaller than €1 million based on total cloud order entry volume (in %) | 21 | 20 | 16 | 11 | 15 | 20 | 20 | 16 | 10 | 14 |
| Liquidity and Cash Flow | ||||||||||
| Net cash flows from operating activities | 2,878 | 1,509 | 1,403 | –584 | 5,207 | 3,780 | 2,577 | 1,502 | 1,297 | 9,156 |
| Free cash flow | 2,642 | 1,288 | 1,200 | –908 | 4,222 | 3,583 | 2,357 | 1,266 | 1,034 | 8,239 |
| Cash and cash equivalents | 9,295 | 7,870 | 10,005 | 9,609 | 9,609 | 11,345 | 7,942 | 8,554 | 8,220 | 8,220 |
| Group liquidity | 13,411 | 11,449 | 11,856 | 11,080 | 11,080 | 12,760 | 9,788 | 9,688 | 9,531 | 9,531 |
| Financial debt (–) | –7,770 | –7,776 | –8,996 | –9,385 | –9,385 | –8,121 | –7,492 | –7,235 | –6,150 | –6,150 |
| Net liquidity (+) / Net debt(–) | 5,641 | 3,674 | 2,860 | 1,695 | 1,695 | 4,639 | 2,297 | 2,453 | 3,381 | 3,381 |
| Non-Financials | ||||||||||
| Number of employees (quarter end)1 | 108,133 | 105,315 | 107,583 | 109,121 | 109,121 | 108,187 | 108,929 | 110,730 | 110,650 | 110,650 |
9/28
|
Quarterly Statement Q4 2025 |
| € millions, unless otherwise stated | Q1 2024 |
Q2
2024 |
Q3
2024 |
Q4 2024 |
TY
2024 |
Q1
2025 |
Q2
2025 |
Q3 2025 |
Q4
2025 |
TY
2025 |
Gross greenhouse gas emissions (scope 1, 2, 3 / market-based)2 (in million tons CO2 equivalents) |
1.8 | 1.8 | 1.8 | 1.8 | 6.9 | 1.6 | 1.6 | 1.6 | 1.5 | 6.3 |
1 In full-time equivalents.
2 Our gross greenhouse gas emissions (GHG) include the total lifecycle emissions resulting from the use of our on-premise software. The calculation of use of sold products emissions is based on the number of active maintenance contracts at quarter end. Therefore, the emissions for individual quarters will not add up to the total sum of GHG emissions at year end.
10/28
|
Quarterly Statement Q4 2025 |
Primary Financial Statements of SAP Group (IFRS)
| (A) | Consolidated Income Statements |
| (A.1) | Consolidated Income Statements – Quarter |
| € millions, unless otherwise stated | Q4 2025 | Q4 2024 | ∆ in % | |
| Cloud | 5,610 | 4,708 | 19 | |
| Software licenses | 452 | 683 | –34 | |
| Software support | 2,557 | 2,876 | –11 | |
| Software licenses and support | 3,008 | 3,559 | –15 | |
| Cloud and software | 8,618 | 8,267 | 4 | |
| Services | 1,066 | 1,110 | –4 | |
| Total revenue | 9,684 | 9,377 | 3 | |
| Cost of cloud | –1,504 | –1,279 | 18 | |
| Cost of software licenses and support | –340 | –319 | 7 | |
| Cost of cloud and software | –1,844 | –1,598 | 15 | |
| Cost of services | –796 | –837 | –5 | |
| Total cost of revenue | –2,640 | –2,435 | 8 | |
| Gross profit | 7,044 | 6,943 | 1 | |
| Research and development | –1,698 | –1,675 | 1 | |
| Sales and marketing | –2,303 | –2,496 | –8 | |
| General and administration | –465 | –378 | 23 | |
| Restructuring | –3 | –323 | –99 | |
| Other operating income/expense, net | –21 | –54 | –60 | |
| Total operating expenses | –7,130 | –7,361 | –3 | |
| Operating profit (loss) | 2,554 | 2,016 | 27 | |
| Other non-operating income/expense, net | 65 | –83 | NA | |
| Finance income | 665 | 578 | 15 | |
| Finance costs | –517 | –305 | 70 | |
| Financial income, net | 147 | 273 | –46 | |
| Profit (loss) before tax | 2,767 | 2,207 | 25 | |
| Income tax expense | –871 | –591 | 47 | |
| Profit (loss) after tax | 1,896 | 1,616 | 17 | |
| Attributable to owners of parent | 1,846 | 1,601 | 15 | |
| Attributable to non-controlling interests | 50 | 15 | >100 | |
| Earnings per share, basic (in €)1 | 1.58 | 1.37 | 15 | |
| Earnings per share, diluted (in €)1 | 1.57 | 1.36 | 16 |
1 For the three months ended December 31, 2025 and 2024, the weighted average number of shares was 1,166 million (diluted 1,172 million) and 1,165 million (diluted: 1,176 million), respectively (treasury stock excluded).
11/28
|
Quarterly Statement Q4 2025 |
| (A.2) | Consolidated Income Statements – Year-to-Date |
| € millions, unless otherwise stated | Q1–Q4 2025 | Q1–Q4 2024 | ∆ in % | |
| Cloud | 21,023 | 17,141 | 23 | |
| Software licenses | 990 | 1,399 | –29 | |
| Software support | 10,525 | 11,290 | –7 | |
| Software licenses and support | 11,515 | 12,689 | –9 | |
| Cloud and software | 32,538 | 29,830 | 9 | |
| Services | 4,262 | 4,346 | –2 | |
| Total revenue | 36,800 | 34,176 | 8 | |
| Cost of cloud | –5,416 | –4,660 | 16 | |
| Cost of software licenses and support | –1,249 | –1,262 | –1 | |
| Cost of cloud and software | –6,665 | –5,922 | 13 | |
| Cost of services | –3,193 | –3,321 | –4 | |
| Total cost of revenue | –9,858 | –9,243 | 7 | |
| Gross profit | 26,942 | 24,932 | 8 | |
| Research and development | –6,633 | –6,514 | 2 | |
| Sales and marketing | –8,879 | –9,090 | –2 | |
| General and administration | –1,548 | –1,435 | 8 | |
| Restructuring | –3 | –3,144 | –100 | |
| Other operating income/expense, net | –49 | –85 | –43 | |
| Total operating expenses | –26,970 | –29,511 | –9 | |
| Operating profit (loss) | 9,830 | 4,665 | >100 | |
| Other non-operating income/expense, net | 118 | –298 | NA | |
| Finance income | 1,911 | 1,429 | 34 | |
| Finance costs | –1,377 | –1,031 | 34 | |
| Financial income, net | 534 | 398 | 34 | |
| Profit (loss) before tax | 10,482 | 4,764 | >100 | |
| Income tax expense | –2,991 | –1,614 | 85 | |
| Profit (loss) after tax | 7,492 | 3,150 | >100 | |
| Attributable to owners of parent | 7,327 | 3,124 | >100 | |
| Attributable to non-controlling interests | 165 | 26 | >100 | |
| Earnings per share, basic (in €)1 | 6.28 | 2.68 | >100 | |
| Earnings per share, diluted (in €)1 | 6.24 | 2.65 | >100 |
1 For the full year 2025 and 2024, the weighted average number of shares was 1,166 million (diluted: 1,175 million) and 1,166 million (diluted: 1,180 million), respectively (treasury stock excluded).
12/28
|
Quarterly Statement Q4 2025 |
| (B) | Consolidated Statements of Financial Position |
| as at 12/31/2025 and 12/31/2024 | ||
| € millions | 2025 | 2024 |
| Cash and cash equivalents | 8,220 | 9,609 |
| Other financial assets | 1,552 | 1,629 |
| Trade and other receivables | 6,675 | 6,774 |
| Other non-financial assets | 3,212 | 2,682 |
| Tax assets | 598 | 707 |
| Total current assets | 20,256 | 21,401 |
| Goodwill | 29,014 | 31,264 |
| Intangible assets | 2,282 | 2,706 |
| Property, plant, and equipment | 4,497 | 4,493 |
| Other financial assets | 7,269 | 7,141 |
| Trade and other receivables | 218 | 209 |
| Other non-financial assets | 4,419 | 3,990 |
| Tax assets | 244 | 359 |
| Deferred tax assets | 2,163 | 2,674 |
| Total non-current assets | 50,106 | 52,836 |
| Total assets | 70,362 | 74,237 |
| € millions | 2025 | 2024 |
| Trade and other payables | 2,431 | 1,988 |
| Tax liabilities | 1,015 | 585 |
| Financial liabilities | 2,050 | 4,277 |
| Other non-financial liabilities | 4,849 | 5,537 |
| Provisions | 324 | 716 |
| Contract liabilities | 6,581 | 5,978 |
| Total current liabilities | 17,250 | 19,082 |
| Trade and other payables | 2 | 10 |
| Tax liabilities | 562 | 512 |
| Financial liabilities | 6,021 | 7,169 |
| Other non-financial liabilities | 524 | 749 |
| Provisions | 550 | 494 |
| Deferred tax liabilities | 72 | 326 |
| Contract liabilities | 144 | 88 |
| Total non-current liabilities | 7,873 | 9,349 |
| Total liabilities | 25,123 | 28,431 |
| Issued capital | 1,229 | 1,229 |
| Share premium | 2,778 | 2,564 |
| Retained earnings | 47,511 | 42,907 |
| Other components of equity | 182 | 4,692 |
| Treasury shares | –6,948 | –5,954 |
| Equity attributable to owners of parent | 44,752 | 45,438 |
| Non-controlling interests | 488 | 368 |
| Total equity | 45,239 | 45,806 |
| Total equity and liabilities | 70,362 | 74,237 |
13/28
|
Quarterly Statement Q4 2025 |
| (C) | Consolidated Statements of Cash Flows |
| € millions | Q1–Q4 20251 | Q1–Q4 2024 |
| Profit (loss) after tax | 7,492 | 3,150 |
| Adjustments to reconcile profit (loss) after tax to net cash flows from operating activities: | ||
| Depreciation and amortization | 1,311 | 1,280 |
| Share-based payment expense | 1,695 | 2,385 |
| Income tax expense | 2,991 | 1,614 |
| Financial income, net | –534 | –398 |
| Increase/decrease in allowances on trade receivables | 11 | 30 |
| Other adjustments for non-cash items | 94 | 110 |
| Increase/decrease in trade and other receivables | –388 | –247 |
| Increase/decrease in other assets | –1,315 | –632 |
| Increase/decrease in trade payables, provisions, and other liabilities | –521 | 603 |
| Increase/decrease in contract liabilities | 1,336 | 869 |
| Share-based payments | –817 | –1,282 |
| Income taxes paid, net of refunds | –2,198 | –2,277 |
| Net cash flows from operating activities | 9,156 | 5,207 |
| Business combinations, net of cash and cash equivalents acquired | –702 | –1,114 |
| Purchase of intangible assets and property, plant, and equipment | –739 | –797 |
| Proceeds from sales of intangible assets and property, plant, and equipment | 121 | 122 |
| Purchase of equity or debt instruments of other entities | –5,845 | –6,401 |
| Proceeds from sales of equity or debt instruments of other entities | 5,779 | 7,533 |
| Interest received | 420 | 563 |
| Net cash flows from investing activities | –965 | –93 |
| Dividends paid | –2,743 | –2,565 |
| Dividends paid on non-controlling interests | –2 | –1 |
| Purchase of treasury shares | –1,937 | –2,106 |
| Proceeds from borrowings | 2 | 2,767 |
| Repayments of borrowings | –3,191 | –1,185 |
| Payments of lease liabilities | –299 | –310 |
| Transactions with non-controlling interests | 0 | –11 |
| Interest paid | –574 | –550 |
| Net cash flows from financing activities | –8,745 | –3,961 |
| Effect of foreign currency rates on cash and cash equivalents | –836 | 333 |
| Net increase/decrease in cash and cash equivalents | –1,390 | 1,485 |
| Cash and cash equivalents at the beginning of the period | 9,609 | 8,124 |
| Cash and cash equivalents at the end of the period | 8,220 | 9,609 |
1 As of January 2025, SAP no longer classifies interest paid and interest received as a part of cash flows from operating activities.
14/28
|
Quarterly Statement Q4 2025 |
Non-IFRS Numbers
| (D) | Basis of Non-IFRS Presentation |
SAP disclose certain financial measures such as expense (non-IFRS) and profit measures (non-IFRS) that are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures.
For a more detailed description of all of SAP’s non-IFRS measures and their limitations as well as SAP’s constant currency and free cash flow figures, see Explanation of Non-IFRS Measures.
| (E) | Reconciliation from Non-IFRS Numbers to IFRS Numbers |
| (E.1) | Reconciliation of Non-IFRS Revenue – Quarter |
| € millions, unless otherwise stated | Q4 2025 | Q4 2024 | ∆ in % | |||
| IFRS | Currency Impact | Non-IFRS Constant Currency | IFRS | IFRS | Non-IFRS Constant Currency | |
| Revenue Numbers | ||||||
| Cloud | 5,610 | 313 | 5,923 | 4,708 | 19 | 26 |
| Software licenses | 452 | 22 | 474 | 683 | –34 | –31 |
| Software support | 2,557 | 111 | 2,668 | 2,876 | –11 | –7 |
| Software licenses and support | 3,008 | 133 | 3,141 | 3,559 | –15 | –12 |
| Cloud and software | 8,618 | 446 | 9,064 | 8,267 | 4 | 10 |
| Services | 1,066 | 50 | 1,115 | 1,110 | –4 | 0 |
| Total revenue | 9,684 | 495 | 10,179 | 9,377 | 3 | 9 |
15/28
|
Quarterly Statement Q4 2025 |
| (E.2) | Reconciliation of Non-IFRS Operating Expenses – Quarter |
| € millions, unless otherwise stated | Q4 2025 | Q4 2024 | ∆ in % | ||||||||
| IFRS | Adj. | Non-IFRS | Currency |
Non-IFRS |
IFRS | Adj. | Non-IFRS | IFRS | Non-IFRS |
Non-IFRS | |
| Operating Expense Numbers | |||||||||||
| Cost of cloud | –1,504 | 79 | –1,425 | –1,279 | 29 | –1,250 | 18 | 14 | |||
| Cost of software licenses and support | –340 | 52 | –288 | –319 | 0 | –319 | 7 | –10 | |||
| Cost of cloud and software | –1,844 | 131 | –1,713 | –1,598 | 29 | –1,569 | 15 | 9 | |||
| Cost of services | –796 | 0 | –796 | –837 | 0 | –837 | –5 | –5 | |||
| Total cost of revenue | –2,640 | 131 | –2,509 | –2,435 | 29 | –2,406 | 8 | 4 | |||
| Gross profit | 7,044 | 131 | 7,175 | 345 | 7,520 | 6,943 | 29 | 6,972 | 1 | 3 | 8 |
| Research and development | –1,698 | 1 | –1,697 | –1,675 | 2 | –1,673 | 1 | 1 | |||
| Sales and marketing | –2,303 | 69 | –2,234 | –2,496 | 53 | –2,443 | –8 | –9 | |||
| General and administration | –465 | 71 | –393 | –378 | 12 | –366 | 23 | 7 | |||
| Restructuring | –3 | 3 | 0 | –323 | 323 | 0 | –99 | NA | |||
| Other operating income/expense, net | –21 | 0 | –21 | –54 | 0 | –54 | –60 | –60 | |||
| Total operating expenses | –7,130 | 275 | –6,855 | –371 | –7,226 | –7,361 | 420 | –6,941 | –3 | –1 | 4 |
| (E.3) | Reconciliation of Non-IFRS Profit Figures, Income Tax, and Key Ratios – Quarter |
| € millions, unless otherwise stated | Q4 2025 | Q4 2024 | ∆ in % | ||||||||
| IFRS | Adj. | Non-IFRS | Currency |
Non-IFRS |
IFRS | Adj. | Non-IFRS | IFRS | Non-IFRS |
Non-IFRS | |
| Profit Numbers | |||||||||||
| Operating profit (loss) | 2,554 | 275 | 2,829 | 124 | 2,953 | 2,016 | 420 | 2,436 | 27 | 16 | 21 |
| Other
non-operating income/expense, net |
65 | 0 | 65 | –83 | 0 | –83 | NA | NA | |||
| Finance income | 665 | –549 | 115 | 578 | –408 | 170 | 15 | –32 | |||
| Finance costs | –517 | 341 | –177 | –305 | 94 | –210 | 70 | –16 | |||
| Financial income, net | 147 | –209 | –61 | 273 | –314 | –40 | –46 | 52 | |||
| Profit (loss) before tax | 2,767 | 66 | 2,833 | 2,207 | 106 | 2,313 | 25 | 22 | |||
| Income tax expense | –871 | –66 | –937 | –591 | –103 | –694 | 47 | 35 | |||
| Profit (loss) after tax | 1,896 | 0 | 1,896 | 1,616 | 3 | 1,619 | 17 | 17 | |||
| Attributable to owners of parent | 1,846 | 42 | 1,888 | 1,601 | 28 | 1,629 | 15 | 16 | |||
| Attributable to non-controlling interests | 50 | –42 | 8 | 15 | –24 | –10 | >100 | NA | |||
| Key Ratios | |||||||||||
| Operating margin (in %) | 26.4 | 29.2 | 29.0 | 21.5 | 26.0 | 4.9pp | 3.2pp | 3.0pp | |||
| Effective tax rate (in %)1 | 31.5 | 33.1 | 26.8 | 30.0 | 4.7pp | 3.1pp | |||||
| Earnings per share, basic (in €) | 1.58 | 1.62 | 1.37 | 1.40 | 15 | 16 | |||||
1 The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q4 2025 mainly resulted from tax effects of equity securities. The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q4 2024 mainly resulted from tax effects of restructuring expenses and equity securities.
16/28
|
Quarterly Statement Q4 2025 |
| (E.4) | Reconciliation of Non-IFRS Revenue – Year-to-Date |
| € millions, unless otherwise stated | Q1–Q4 2025 | Q1–Q4 2024 | ∆ in % | |||
| IFRS | Currency Impact |
Non-IFRS |
IFRS | IFRS |
Non-IFRS | |
| Revenue Numbers | ||||||
| Cloud | 21,023 | 637 | 21,661 | 17,141 | 23 | 26 |
| Software licenses | 990 | 31 | 1,020 | 1,399 | –29 | –27 |
| Software support | 10,525 | 229 | 10,754 | 11,290 | –7 | –5 |
| Software licenses and support | 11,515 | 259 | 11,774 | 12,689 | –9 | –7 |
| Cloud and software | 32,538 | 897 | 33,435 | 29,830 | 9 | 12 |
| Services | 4,262 | 107 | 4,369 | 4,346 | –2 | 1 |
| Total revenue | 36,800 | 1,004 | 37,804 | 34,176 | 8 | 11 |
| (E.5) | Reconciliation of Non-IFRS Operating Expenses – Year-to-Date |
| € millions, unless otherwise stated | Q1–Q4 2025 | Q1–Q4 2024 | ∆ in % | ||||||||
| IFRS | Adj. | Non-IFRS | Currency Impact |
Non-IFRS |
IFRS | Adj. | Non-IFRS | IFRS | Non-IFRS |
Non-IFRS | |
| Operating Expense Numbers | |||||||||||
| Cost of cloud | –5,416 | 150 | –5,266 | –4,660 | 78 | –4,582 | 16 | 15 | |||
| Cost of software licenses and support | –1,249 | 52 | –1,196 | –1,262 | 0 | –1,262 | –1 | –5 | |||
| Cost of cloud and software | –6,665 | 203 | –6,463 | –5,922 | 78 | –5,844 | 13 | 11 | |||
| Cost of services | –3,193 | 1 | –3,192 | –3,321 | 1 | –3,321 | –4 | –4 | |||
| Total cost of revenue | –9,858 | 203 | –9,655 | –9,243 | 79 | –9,165 | 7 | 5 | |||
| Gross profit | 26,942 | 203 | 27,145 | 705 | 27,851 | 24,932 | 79 | 25,011 | 8 | 9 | 11 |
| Research and development | –6,633 | 5 | –6,628 | –6,514 | 5 | –6,508 | 2 | 2 | |||
| Sales and marketing | –8,879 | 299 | –8,580 | –9,090 | 234 | –8,856 | –2 | –3 | |||
| General and administration | –1,548 | 78 | –1,470 | –1,435 | 27 | –1,409 | 8 | 4 | |||
| Restructuring | –3 | 3 | 0 | –3,144 | 3,144 | 0 | –100 | NA | |||
| Other operating income/expense, net | –49 | 0 | –49 | –85 | 0 | –85 | –43 | –43 | |||
| Total operating expenses | –26,970 | 589 | –26,382 | –762 | –27,143 | –29,511 | 3,489 | –26,022 | –9 | 1 | 4 |
17/28
|
Quarterly Statement Q4 2025 |
| (E.6) | Reconciliation of Non-IFRS Profit Figures, Income Tax, and Key Ratios – Year-to-Date |
| € millions, unless otherwise stated | Q1–Q4 2025 | Q1–Q4 2024 | ∆ in % | ||||||||
| IFRS | Adj. | Non-IFRS | Currency Impact |
Non-IFRS |
IFRS | Adj. | Non-IFRS | IFRS | Non-IFRS |
Non-IFRS | |
| Profit Numbers | |||||||||||
| Operating profit (loss) | 9,830 | 589 | 10,419 | 242 | 10,661 | 4,665 | 3,489 | 8,153 | >100 | 28 | 31 |
| Other non-operating income/expense, net | 118 | 0 | 118 | –298 | 0 | –298 | NA | NA | |||
| Finance income | 1,911 | –1,389 | 522 | 1,429 | –777 | 652 | 34 | –20 | |||
| Finance costs | –1,377 | 625 | –751 | –1,031 | 316 | –715 | 34 | 5 | |||
| Financial income, net | 534 | –764 | –230 | 398 | –461 | –63 | 34 | >100 | |||
| Profit (loss) before tax | 10,482 | –175 | 10,307 | 4,764 | 3,028 | 7,792 | >100 | 32 | |||
| Income tax expense | –2,991 | –141 | –3,132 | –1,614 | –899 | –2,513 | 85 | 25 | |||
| Profit (loss) after tax | 7,492 | –316 | 7,176 | 3,150 | 2,129 | 5,279 | >100 | 36 | |||
| Attributable to owners of parent | 7,327 | –161 | 7,166 | 3,124 | 2,162 | 5,286 | >100 | 36 | |||
| Attributable to non-controlling interests | 165 | –156 | 10 | 26 | –33 | –7 | >100 | NA | |||
| Key Ratios | |||||||||||
| Operating margin (in %) | 26.7 | 28.3 | 28.2 | 13.6 | 23.9 | 13.1pp | 4.5pp | 4.3pp | |||
| Effective tax rate (in %)1 | 28.5 | 30.4 | 33.9 | 32.3 | –5.4pp | –1.9pp | |||||
| Earnings per share, basic (in €) | 6.28 | 6.15 | 2.68 | 4.53 | >100 | 36 | |||||
1 The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in 2025 mainly resulted from tax effects of equity securities. The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in 2024 mainly resulted from tax effects of restructuring expenses and equity securities.
18/28
|
Quarterly Statement Q4 2025 |
| (E.7) | Reconciliation of Free Cash Flow |
| € millions, unless otherwise stated | Q1–Q4 2025 | Q1–Q4 2024 |
| Net cash flows from operating activities | 9,156 | 5,207 |
| Purchase of intangible assets and property, plant, and equipment | –739 | –797 |
| Proceeds from sales of intangible assets and property, plant, and equipment | 121 | 122 |
| Payments of lease liabilities | –299 | –310 |
| Free cash flow | 8,239 | 4,222 |
| Net cash flows from investing activities | –965 | –93 |
| Net cash flows from financing activities | –8,745 | –3,961 |
19/28
|
Quarterly Statement Q4 2025 |
| (F) | Non-IFRS Adjustments – Actuals and Estimates |
| € millions, unless otherwise stated |
Estimated Amounts for |
Q4 2025 | Q1–Q4 2025 | Q4 2024 | Q1–Q4 2024 |
| Profit (loss) before tax (IFRS) | 2,767 | 10,482 | 2,207 | 4,764 | |
| Adjustment for acquisition-related charges | 340-420 | 98 | 411 | 100 | 356 |
| Adjustment for restructuring expenses | 0-20 | 3 | 3 | 323 | 3,144 |
| Adjustment for regulatory compliance matter expenses | 0 | 0 | 0 | –3 | –11 |
| Adjustment for the Teradata litigation expenses | 0 | 174 | 174 | 0 | 0 |
| Adjustment for gains and losses from equity securities, net | N/A1 | –209 | –764 | –314 | –461 |
| Profit (loss) before tax (non-IFRS) | 2,833 | 10,307 | 2,313 | 7,792 |
1 Due to the uncertainty and potential variability of gains and losses from equity securities, we cannot provide an estimate for the full year without unreasonable efforts. This item could however have a material impact on our non-IFRS measures below operating profit.
| (G) | Non-IFRS Operating Expense Adjustments by Functional Areas |
| € millions | Q4 2025 | Q4 2024 | ||||||||||
| IFRS | Acquisition -Related |
Restruc- turing |
RCM1 | Teradata litigation |
Non- IFRS |
IFRS | Acquisition- Related |
Restruc-turing | RCM1 | Teradata litigation | Non-IFRS | |
| Cost of cloud | –1,504 | 26 | 0 | 0 | 52 | –1,425 | –1,279 | 29 | 0 | 0 | 0 | –1,250 |
| Cost of software licenses and support | –340 | 0 | 0 | 0 | 52 | –288 | –319 | 0 | 0 | 0 | 0 | –319 |
| Cost of services | –796 | 0 | 0 | 0 | 0 | –796 | –837 | 0 | 0 | 0 | 0 | –837 |
| Research and development | –1,698 | 1 | 0 | 0 | 0 | –1,697 | –1,675 | 2 | 0 | 0 | 0 | –1,673 |
| Sales and marketing | –2,303 | 69 | 0 | 0 | 0 | –2,234 | –2,496 | 67 | 0 | –14 | 0 | –2,443 |
| General and administration | –465 | 2 | 0 | 0 | 70 | –393 | –378 | 2 | 0 | 11 | 0 | –366 |
| Restructuring | –3 | 0 | 3 | 0 | 0 | 0 | –323 | 0 | 323 | 0 | 0 | 0 |
| Other operating income/expense, net | –21 | 0 | 0 | 0 | 0 | –21 | –54 | 0 | 0 | 0 | 0 | –54 |
| Total operating expenses | –7,130 | 98 | 3 | 0 | 174 | –6,855 | –7,361 | 100 | 323 | –3 | 0 | –6,941 |
1 Regulatory Compliance Matters
| € millions | Q1–Q4 2025 | Q1–Q4 2024 | ||||||||||
| IFRS | Acquisition -Related |
Restruc- turing |
RCM1 | Teradata litigation |
Non- IFRS |
IFRS | Acquisition- Related |
Restruc-turing | RCM1 | Teradata litigation | Non-IFRS | |
| Cost of cloud | –5,416 | 98 | 0 | 0 | 52 | –5,266 | –4,660 | 78 | 0 | 0 | 0 | –4,582 |
| Cost of software licenses and support | –1,249 | 0 | 0 | 0 | 52 | –1,196 | –1,262 | 0 | 0 | 0 | 0 | –1,262 |
| Cost of services | –3,193 | 1 | 0 | 0 | 0 | –3,192 | –3,321 | 1 | 0 | 0 | 0 | –3,321 |
| Research and development | –6,633 | 5 | 0 | 0 | 0 | –6,628 | –6,514 | 5 | 0 | 0 | 0 | –6,508 |
| Sales and marketing | –8,879 | 299 | 0 | 0 | 0 | –8,580 | –9,090 | 255 | 0 | –22 | 0 | –8,856 |
| General and administration | –1,548 | 8 | 0 | 0 | 70 | –1,470 | –1,435 | 16 | 0 | 11 | 0 | –1,409 |
| Restructuring | –3 | 0 | 3 | 0 | 0 | 0 | –3,144 | 0 | 3,144 | 0 | 0 | 0 |
| Other operating income/expense, net | –49 | 0 | 0 | 0 | 0 | –49 | –85 | 0 | 0 | 0 | 0 | –85 |
| Total operating expenses | –26,970 | 411 | 3 | 0 | 174 | –26,382 | –29,511 | 356 | 3,144 | –11 | 0 | –26,022 |
1 Regulatory Compliance Matters
20/28
|
Quarterly Statement Q4 2025 |
If not presented in a separate line item in our income statement, the restructuring expenses would break down as follows:
| € millions | Q4 2025 | Q1–Q4 2025 | Q4 2024 | Q1–Q4 2024 |
| Cost of cloud | 0 | 1 | –1 | –95 |
| Cost of software licenses and support | 1 | 5 | –6 | –85 |
| Cost of services | –1 | 8 | –41 | –566 |
| Research and development | –3 | 17 | –109 | –1,197 |
| Sales and marketing | –2 | –19 | –149 | –1,043 |
| General and administration | 2 | –16 | –17 | –158 |
| Restructuring expenses | –3 | –3 | –323 | –3,144 |
21/28
|
Quarterly Statement Q4 2025 |
Disaggregations
| (H) | Segment Reporting |
| (H.1) | Segment Policies and Changes |
SAP is organized in two operating segments, the Applications, Technology & Support (ATS) segment and the Core Services segment:
| – | The ATS segment represents SAP’s cohesive product portfolio which is holistically steered and commercialized. It primarily generates revenue from cloud subscriptions and from the sale of software licenses and support offerings, and it incurs cost for support, operating our solutions, and the provision of infrastructure. The revenue and cost for services arise for SAP’s training business which is highly integrated with SAP’s product portfolio. |
| – | The Core Services segment supports SAP’s product portfolio by enabling customers to transform their business and accelerate the adoption of innovations. Revenues are mainly generated from professional consulting services and premium support services. Cost is incurred primarily for the delivery of those services. The Core Services segment does not reflect the full services business. |
The segment information for comparative prior periods was restated to conform with the new segment composition.
| (H.2) | Segment Reporting – Quarter |
Applications, Technology & Support (ATS)
|
€ millions (non-IFRS) |
Q4 2025 | Q4 2024 | |
Actual Currency |
Constant Currency |
Actual Currency | |
| Cloud | 5,610 | 5,923 | 4,708 |
| Software licenses | 452 | 474 | 683 |
| Software support | 2,557 | 2,668 | 2,876 |
| Software licenses and support | 3,008 | 3,141 | 3,559 |
| Cloud and software | 8,618 | 9,064 | 8,267 |
| Services | 93 | 96 | 114 |
| Total segment revenue | 8,711 | 9,160 | 8,381 |
| Cost of cloud | –1,372 | –1,465 | –1,223 |
| Cost of software licenses and support | –285 | –301 | –306 |
| Cost of cloud and software | –1,656 | –1,766 | –1,529 |
| Cost of services | –84 | –86 | –96 |
| Total cost of revenue | –1,740 | –1,853 | –1,626 |
| Segment gross profit | 6,971 | 7,307 | 6,755 |
| Other segment expenses | –3,438 | –3,611 | –3,483 |
| Segment profit (loss) | 3,532 | 3,696 | 3,272 |
Core Services
|
€ millions (non-IFRS) |
Q4 2025 | Q4 2024 | |
Actual Currency |
Constant Currency |
Actual Currency | |
| Services | 973 | 1,019 | 996 |
| Total segment revenue | 973 | 1,019 | 996 |
| Cost of cloud | –34 | –35 | –32 |
| Cost of software licenses and support | –10 | –10 | –13 |
| Cost of cloud and software | –44 | –45 | –45 |
| Cost of services | –704 | –736 | –743 |
| Total cost of revenue | –747 | –781 | –788 |
| Segment gross profit | 226 | 238 | 209 |
| Other segment expenses | –160 | –167 | –177 |
| Segment profit (loss) | 66 | 71 | 32 |
22/28
|
Quarterly Statement Q4 2025 |
| (H.3) | Segment Reporting – Year-to-Date |
Applications, Technology & Support
|
€ millions (non-IFRS) |
Q1–Q4 2025 | Q1–Q4 2024 | |
Actual Currency |
Constant Currency |
Actual Currency | |
| Cloud | 21,023 | 21,661 | 17,141 |
| Software licenses | 990 | 1,020 | 1,399 |
| Software support | 10,525 | 10,754 | 11,290 |
| Software licenses and support | 11,515 | 11,774 | 12,689 |
| Cloud and software | 32,538 | 33,435 | 29,829 |
| Services | 309 | 316 | 418 |
| Total segment revenue | 32,847 | 33,751 | 30,248 |
| Cost of cloud | –5,084 | –5,276 | –4,446 |
| Cost of software licenses and support | –1,109 | –1,143 | –1,169 |
| Cost of cloud and software | –6,193 | –6,419 | –5,615 |
| Cost of services | –349 | –357 | –385 |
| Total cost of revenue | –6,542 | –6,775 | –6,000 |
| Segment gross profit | 26,305 | 26,976 | 24,248 |
| Other segment expenses | –12,959 | –13,328 | –12,995 |
| Segment profit (loss) | 13,345 | 13,647 | 11,253 |
Core Services
|
€ millions (non-IFRS) |
Q1–Q4 2025 | Q1–Q4 2024 | |
Actual Currency |
Constant Currency |
Actual Currency | |
| Services | 3,953 | 4,053 | 3,927 |
| Total segment revenue | 3,953 | 4,053 | 3,927 |
| Cost of cloud | –120 | –124 | –108 |
| Cost of software licenses and support | –39 | –40 | –49 |
| Cost of cloud and software | –159 | –164 | –158 |
| Cost of services | –2,773 | –2,843 | –2,850 |
| Total cost of revenue | –2,932 | –3,007 | –3,008 |
| Segment gross profit | 1,021 | 1,046 | 920 |
| Other segment expenses | –590 | –605 | –637 |
| Segment profit (loss) | 432 | 440 | 283 |
23/28
|
Quarterly Statement Q4 2025 |
| (I) | Revenue by Region (IFRS and Non-IFRS) |
| (I.1) | Revenue by Region (IFRS and Non-IFRS) – Quarter |
| € millions | Q4 2025 | Q4 2024 | ∆ in % | |||
| Actual currency | Currency Impact |
Constant Currency |
Actual currency | Actual currency |
Constant Currency | |
| Cloud Revenue by Region | ||||||
| EMEA | 2,410 | 41 | 2,451 | 1,920 | 26 | 28 |
| Americas | 2,383 | 192 | 2,574 | 2,121 | 12 | 21 |
| APJ | 817 | 80 | 897 | 667 | 23 | 34 |
| Cloud revenue | 5,610 | 313 | 5,923 | 4,708 | 19 | 26 |
| Cloud and Software Revenue by Region | ||||||
| EMEA | 4,055 | 52 | 4,107 | 3,840 | 6 | 7 |
| Americas | 3,327 | 273 | 3,600 | 3,230 | 3 | 11 |
| APJ | 1,236 | 120 | 1,357 | 1,197 | 3 | 13 |
| Cloud and software revenue | 8,618 | 446 | 9,064 | 8,267 | 4 | 10 |
| Total Revenue by Region | ||||||
| Germany | 1,582 | 2 | 1,583 | 1,557 | 2 | 2 |
| Rest of EMEA | 3,007 | 57 | 3,064 | 2,838 | 6 | 8 |
| Total EMEA | 4,589 | 58 | 4,647 | 4,395 | 4 | 6 |
| United States | 2,934 | 257 | 3,191 | 2,947 | 0 | 8 |
| Rest of Americas | 801 | 48 | 849 | 714 | 12 | 19 |
| Total Americas | 3,734 | 305 | 4,040 | 3,662 | 2 | 10 |
| Japan | 393 | 39 | 432 | 370 | 6 | 17 |
| Rest of APJ | 968 | 92 | 1,061 | 950 | 2 | 12 |
| Total APJ | 1,361 | 132 | 1,493 | 1,320 | 3 | 13 |
| Total revenue | 9,684 | 495 | 10,179 | 9,377 | 3 | 9 |
24/28
|
Quarterly Statement Q4 2025 |
| (I.2) | Revenue by Region (IFRS and Non-IFRS) – Year-to-Date |
| € millions | Q1–Q4 2025 | Q1–Q4 2024 | ∆ in % | |||
| Actual Currency | Currency Impact |
Constant Currency |
Actual Currency | Actual Currency |
Constant Currency | |
| Cloud Revenue by Region | ||||||
| EMEA | 8,876 | 62 | 8,938 | 6,892 | 29 | 30 |
| Americas | 9,075 | 422 | 9,497 | 7,872 | 15 | 21 |
| APJ | 3,072 | 153 | 3,226 | 2,377 | 29 | 36 |
| Cloud revenue | 21,023 | 637 | 21,661 | 17,141 | 23 | 26 |
| Cloud and Software Revenue by Region | ||||||
| EMEA | 15,013 | 75 | 15,089 | 13,534 | 11 | 11 |
| Americas | 12,744 | 592 | 13,336 | 11,987 | 6 | 11 |
| APJ | 4,781 | 229 | 5,011 | 4,308 | 11 | 16 |
| Cloud and software revenue | 32,538 | 897 | 33,435 | 29,830 | 9 | 12 |
| Total Revenue by Region | ||||||
| Germany | 5,828 | 1 | 5,829 | 5,359 | 9 | 9 |
| Rest of EMEA | 11,197 | 83 | 11,280 | 10,216 | 10 | 10 |
| Total EMEA | 17,025 | 83 | 17,109 | 15,575 | 9 | 10 |
| United States | 11,537 | 486 | 12,023 | 11,056 | 4 | 9 |
| Rest of Americas | 2,962 | 182 | 3,145 | 2,752 | 8 | 14 |
| Total Americas | 14,499 | 669 | 15,167 | 13,808 | 5 | 10 |
| Japan | 1,569 | 50 | 1,619 | 1,388 | 13 | 17 |
| Rest of APJ | 3,707 | 202 | 3,909 | 3,404 | 9 | 15 |
| Total APJ | 5,276 | 252 | 5,528 | 4,793 | 10 | 15 |
| Total revenue | 36,800 | 1,004 | 37,804 | 34,176 | 8 | 11 |
25/28
|
Quarterly Statement Q4 2025 |
| (J) | Employees by Region and Functional Areas |
| Full-time equivalents | 12/31/2025 | 12/31/2024 | ||||||
| EMEA | Americas | APJ | Total | EMEA | Americas | APJ | Total | |
| Cloud and software | 4,665 | 4,511 | 5,381 | 14,557 | 4,543 | 4,339 | 4,764 | 13,646 |
| Services | 8,331 | 4,546 | 5,813 | 18,691 | 8,485 | 4,719 | 5,566 | 18,770 |
| Research and development | 18,589 | 5,845 | 13,531 | 37,965 | 18,819 | 5,677 | 13,094 | 37,590 |
| Sales and marketing | 12,031 | 9,829 | 4,963 | 26,823 | 12,042 | 9,801 | 5,139 | 26,983 |
| General and administration | 4,057 | 1,924 | 1,356 | 7,337 | 3,836 | 1,836 | 1,300 | 6,971 |
| Infrastructure | 3,164 | 1,104 | 1,008 | 5,277 | 3,076 | 1,164 | 921 | 5,161 |
| SAP Group (12/31) | 50,837 | 27,759 | 32,052 | 110,650 | 50,801 | 27,536 | 30,784 | 109,121 |
| Thereof acquisitions1 | 288 | 74 | 13 | 375 | 413 | 414 | 86 | 912 |
| SAP Group (twelve months' end average) | 49,685 | 27,823 | 31,703 | 109,211 | 49,764 | 27,394 | 29,997 | 107,155 |
1 Acquisitions closed between January 1 and December 31 of the respective year.
26/28
|
Quarterly Statement Q4 2025 |
Other Disclosures
| (K) | Share-Based Payment |
SAP’s share-based payment expenses included in SAPs non-IFRS operating expenses break down as follows:
| € millions | Q4 2025 | Q1–Q4 2025 | Q4 2024 | Q1–Q4 2024 |
| Cost of cloud | –21 | –107 | –34 | –138 |
| Cost of software licenses and support | –6 | –30 | –11 | –42 |
| Cost of services | –46 | –244 | –91 | –360 |
| Research and development | –119 | –600 | –180 | –751 |
| Sales and marketing | –101 | –579 | –200 | –876 |
| General and administration | –23 | –135 | –54 | –217 |
| Share-based payment expenses | –316 | –1,695 | –570 | –2,385 |
The decrease in share-based payment expenses is mainly due to a reduction in the SAP share price of more than €25 in 2025, as compared to an increase in 2024 of more than €95, as well as lower grant volumes as compared to prior years. For more information about share-based payment expenses, see the Notes to the Consolidated Half-Year Financial Statements, Note (B.3).
In the fourth quarter and in the full year 2025, the amount of accelerated share-based payment expenses triggered by the transformation program was not material. In 2024, SAP recognized accelerated share-based payment expenses amounting to €138 million in the fourth quarter, and €309 million in the full year. These share-based payment expenses are classified as restructuring expenses in SAP’s consolidated income statements.
Associated share-based payments in the full year 2025 amounted to €165 million (Q1-Q4/2024: €171 million) and are classified as a decrease in provisions and other liabilities in SAP’s consolidated statements of cash flows.
| (L) | Business Combinations |
On August 1, 2025, SAP announced its intention to acquire 100% of SmartRecruiters, Inc. (“SmartRecruiters”), a leading talent acquisition software provider.
The transaction closed on September 11, 2025, following satisfaction of regulatory and other approvals. The acquisition will strengthen the SAP SuccessFactors Human Capital Management (HCM) suite. SmartRecruiter’s products improve employee hiring decision-making and reduce time to hire. Embedded analytics and AI-powered recommendations from SAP and SmartRecruiters will provide valuable insights into talent pools, avoid hiring bottlenecks, and improve workforce planning. The preliminary consideration transferred amounted to €753 million.
In the fourth quarter of 2025, the contribution of SmartRecruiters to revenue was approximately €20 million, to operating profit (IFRS) approximately €-11 million and operating profit (non-IFRS) approximately €-6 million (non-IFRS). For the full year 2025 the contribution of SmartRecruiters was approximately €26 million to revenue, approximately €-17 million to operating profit (IFRS) and approximately €-10 million to operating profit (non-IFRS).
| (M) | Tax-related Litigation |
Due to a recent change in case law, SAP´s other tax litigation was affected for prior years. This resulted in an increase of other taxes by €98 million negatively affecting SAP’s operating profit and a compensating benefit in SAP’s income tax expense in the third quarter of 2025. As payments were made over the years, the impact on cash flows from operating activities 2025 is immaterial.
The other tax litigation was disclosed among the contingent liabilities in the Notes to the Consolidated Half-Year Financial Statements, Note (G.1).
| (N) | Teradata Litigation Matter |
The Teradata litigation claims have been pending in the U.S. federal court since 2018 when Teradata Corporation, Teradata US, Inc. and Teradata Operations, Inc. (collectively “Teradata“) filed a civil lawsuit against SAP SE, SAP America, Inc. and SAP Labs, LLC. Teradata alleges trade secret misappropriation and U.S. antitrust violations concerning the development and commercialization of the SAP HANA database. While SAP initially secured a dismissal of these claims in 2021, a 2024 appellate ruling reinstated the case, and the U.S. Supreme Court declined to review the matter in October 2025. SAP will continue to defend itself vigorously at the jury trial scheduled for March-April 2026. SAP engaged in a court ordered mediation at the end of January 2026 and as a result thereof,
27/28
|
Quarterly Statement Q4 2025 |
we have recorded a provision of €174 million as of December 31, 2025 (FY 2024: €0 million) related to our offer to Teradata to fully settle these claims, which to date reflects our best estimate to resolve the litigation.
For more information about the Teradata litigation, see the Notes to the Consolidated Half-Year Financial Statements, Note (G.1).
| (O) | Changes to Our Financial Key Measures |
Effective 2025, numbers that are identified as operating profit (non-IFRS) will be adjusted by excluding expenses related to the Teradata litigation matter. This adjustment includes legal fees and expenses from settlements, or damages awarded in court, and are strictly limited to the scope of IAS 37.
The adjustments to SAP’s non-IFRS definitions will also impact our profit before tax (non-IFRS), profit after tax (non-IFRS), and our non-IFRS key ratios such as operating margin, effective tax rate, and earnings per share, basic.
For more details such as the explanation, the usefulness, and the limitations of non-IFRS measures, please refer to the SAP Performance Measures. For more information about the Teradata litigation matter, see Note (N) in this quarterly statement, and the Notes to the Consolidated Half-Year Financial Statements, Note (G.1).
| (P) | Changes to Our Non-Financial Key Measures |
The following changes will be effective as of 2026.
(P.1) Gross Greenhouse Gas Emissions
Starting 2026, SAP intend to revise the methodology we use to calculate Scope 3 GHG emissions. We will replace our current methodology for calculating category 11 emissions from the use of sold products, which is based on the total amount of active maintenance contracts, with a forward-looking approach that considers the estimated emissions during the lifetime of all new systems sold within a specific period. This change aligns our approach more closely with the GHG Protocol. The revised calculation methodology will result in a significant decrease in reported emissions and therefore lead to a re-baselining in accordance with the GHG Protocol. Had this methodology been applied in the reporting year, our 2025 GHG emissions would have been 3,549 kilotons.
(P.2) Customer Net Promoter Score
Starting 2026, we are revising our customer experience KPI framework by switching from Customer NPS (Net Promoter Score) to Cloud Customer Satisfaction (Cloud CSAT). The CSAT metric is calculated as a “top 2-box” score, taking the percentage of customers who are “very satisfied” or “satisfied” with SAP, as indicated on a 5-point scale, that provides response options from “very satisfied” to “very dissatisfied”. Consequently, the range of achievable scores is between 0 and 100, with the latter being the best achievable score for customer satisfaction as measured by the Cloud CSAT methodology.
The Cloud CSAT KPI is calculated based on feedback from our cloud customers, in alignment with SAP’s cloud-first strategy. The Cloud CSAT score for 2025 was 75%. A cloud customer is a customer giving feedback either (1) explicitly about one of the cloud solutions that they have implemented and are operationally running, or (2) giving feedback about “SAP in general” while having implemented and operationally running either exclusively one or more cloud solution(s) or has a mixed portfolio that does not include certain pre-defined solutions confirmed to be running as on-premise. If a customer runs any of the pre-defined, confirmed to be running as on-premise solutions (ERP On-Prem, HANA On-Prem, S/4HANA On-prem, HCM On-Prem, SAP Business Objects, SAP Business Warehouse), they are treated as an on-premise customer and their rating score is not considered in the Cloud CSAT calculation. The revenue generated with cloud solutions in any mixed portfolio counts towards cloud revenue reported in our financial information.
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