SAP lifts 2025 profit, cash flow outlook as cloud revenue grows 22%

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SAP lifts 2025 profit, cash flow outlook as cloud revenue grows 22%
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Investing.com -- SAP on Wednesday raised its full-year profit and cash flow guidance after reporting double-digit growth in cloud and total revenue for the third quarter, though shares fell 1.5% in extended trading.

The German software maker said third-quarter revenue rose 7% to €9.08 billion, with cloud sales up 22% to €5.29 billion. Operating profit increased 12% to €2.49 billion under IFRS and 14% to €2.57 billion on a non-IFRS basis.

SAP now expects 2025 cloud revenue near the lower end of its prior range of €21.6–21.9 billion, up 26% to 28% at constant currencies, and sees non-IFRS operating profit toward the upper end of €10.3–10.6 billion, an increase of 26% to 30%.

It also slightly raised its free cash flow target to €8.0–8.2 billion from about €8 billion.

Chief Executive Christian Klein said SAP’s 27% cloud growth shows accelerating adoption across its business suite, including AI and data products, and gives confidence in faster total revenue growth in 2026.

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