SAP reveals strong financial results as AI & cloud innovations drive success

SAP has released strong financial results for the second quarter (Q2) and half-year (HY) 2025 as artificial intelligence (AI) and cloud innovations drive success across its portfolio.

The results indicate that total revenue is up 9 percent (up 12 percent at constant currencies) while cloud revenue is up 24 percent (28 percent at constant currencies).

Cloud ERP Suite revenue is up 30 percent up (34 percent at constant currencies) while SAP has a current cloud backlog of €18.1 billion, up 22 percent (28 percent at constant currencies).

SAP also has an IFRS operating profit of €2.5 billion (non-IFRS operating profit of €2.6 billion) up 32 percent (35 percent at constant currencies). The firm’s outlook for 2025 remains unchanged, it stated.

SAP releases strong Q2 results

“We have delivered yet another quarter of outstanding results,” said Christian Klein, SAP CEO. “AI innovations such as Joule becoming available ‘everywhere and for everything’ and SAP Business Data Cloud as a powerful accelerator of AI make our portfolio ever stronger. Enterprise operations are about to enter a new era, and SAP is best positioned to benefit from that evolution.”

SAP has achieved a “very good Q2,” with accelerating total revenue growth, strong profitability and free cash flow, added Dominik Asam, chief financial officer at SAP.

“Our performance was supported by continued customer demand and disciplined cost control. As we move into the second half, we remain cautiously optimistic, keeping a close eye on geopolitical developments and public sector trends.”

Transformation and AI spur growth at SAP

Earlier this month, Klein told Bloomberg that “client transformation” will spur SAP’s growth until 2030.

Speaking today, Klein reflected on the fact that 30 percent of SAP’s sales come from the US, the ongoing impact of tariffs and the role the growing demand for AI services will play in driving growth at SAP in 2026.

“For us it’s very important that [the] pipeline is strong, [that] we actually see strong executions so far in the year and that is our main focus. The customers are really leaning in [to AI]; 50 percent of the deals are already including AI. The adoption is going up and customers see the productivity increases after applying SAP Business AI. Now that we are delivering more and more on top of our AI foundation, together with our new data offering Business Data Cloud, I expect that we’ll see a further surge in business AI in 2026.”

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