SAP reported full-year 2025 non-IFRS operating profit of €10.66 billion, representing a 31% increase at constant currencies versus the prior year, outperforming the upper end of its guidance range. IFRS operating profit more than doubled, rising 111% to €9.83 billion, driven by disciplined cost management and strong software-as-a-service performance. Free cash flow reached €8.24 billion, up 95% year-over-year, fueled by lower restructuring and share-based compensation payments. Basic earnings per share climbed 36% on a non-IFRS basis to €6.15, while net cash flow from operating activities surged 76% to €9.16 billion.

Cloud revenue for FY2025 rose 23% to €21.02 billion and 26% at constant currencies, with the Cloud ERP Suite posting 28% growth to €18.12 billion (32% at constant currencies). Total cloud backlog increased 22% to a record €77.29 billion (30% at constant currencies), underpinned by a 16% rise in current cloud backlog to €21.05 billion (25% at constant currencies). In Q4 alone, cloud order entry drove total cloud backlog growth of 30% to €77 billion, highlighting strong AI-driven adoption across SAP Business AI and the ERP Suite.

SAP unveiled a new two-year share buyback authorization of up to €10 billion, reflecting management’s confidence in the company’s cash generation and long-term growth trajectory. This program complements disciplined capital allocation, including a 95% increase in free cash flow, and is expected to enhance shareholder returns while maintaining investment capacity in cloud innovation and AI-embedded solutions.

CEO Christian Klein emphasized the pivotal role of SAP Business AI, which featured in two-thirds of Q4 cloud orders, and credited strong order momentum for establishing a solid foundation for accelerated revenue growth through 2027. CFO Dominik Asam noted that SAP closed 2025 with operating profit and free cash flow ahead of expectations, attributing results to financial discipline and focused execution. Both executives underscored confidence in SAP’s ability to sustain market-leading SaaS and PaaS growth and to drive long-term value creation through its digital transformation portfolio.