- SAP's cloud revenue increased by 27% to €4.99 billion in Q1 2025.
- The company's non-IFRS operating profit surged by 60% to €2.46 billion.
- SAP's free cash flow rose by 36% to €3.58 billion.
SAP SE (SAP, Financial) reported robust financial results for the first quarter of 2025, with total revenue climbing by 12% to €9.01 billion. The standout performance was in the cloud segment, where revenues soared 27% to €4.99 billion. This substantial increase in cloud revenue underscores the success of SAP's strategic focus on cloud-first solutions.
The Cloud ERP Suite, a pivotal component of SAP's strategy, experienced a significant revenue growth of 34% to €4.25 billion. The increase in predictable revenue, accounting for 86% of total revenue, demonstrates the resilience and stability of SAP's business model.
Operating profits also saw exceptional growth, with IFRS operating profit reaching €2.33 billion, and non-IFRS operating profit escalating by 60% to €2.46 billion. This impressive profitability is attributed to the completion of SAP's 2024 transformation program, which successfully reduced costs and enhanced operational efficiencies.
SAP's financial health is further reflected in its operating cash flow, which rose by 31% to €3.78 billion and free cash flow, which increased by 36% to €3.58 billion. These cash flow results have enabled SAP to continue its share repurchase program, buying back shares worth approximately €3.1 billion at an average price of €164.79.
Looking ahead, SAP maintains a positive outlook for 2025, projecting cloud revenue to reach between €21.6 billion and €21.9 billion, alongside cloud and software revenue of €33.1 billion to €33.6 billion at constant currencies. The company's strategic initiatives and robust financial performance position it well for future growth in the dynamic tech industry.
