Q3 2025 SAP SE Earnings Call Transcript
Key Points
- SAP SE (SAP) reported strong cloud revenue growth of 27% in Q3, marking the fifth consecutive quarter of over 25% growth.
- The company achieved a solid cloud gross margin of approximately 75% in Q3.
- SAP SE (SAP) gained market share, growing 10 percentage points faster than the rest of the market in 2024, according to an IDC study.
- The company confirmed its ambition to accelerate total revenue growth through 2027, with AI as a key enabler.
- SAP SE (SAP) secured significant customer wins, including Alphabet, Ericsson, Lufthansa, and others, expanding their adoption of SAP's Business Data Cloud and Business AI solutions.
- SAP SE (SAP) adjusted its cloud revenue outlook for fiscal year 2025 towards the lower end due to delayed bookings in the first half of the year.
- Software licenses revenue decreased by 42% in Q3.
- The company faced a negative impact of approximately EUR200 million on operating profit due to changes in tax litigation provisions and workforce transformation expenses.
- SAP SE (SAP) experienced elongated sales cycles in sectors such as industrial manufacturing and public sector, impacting bookings.
- The transactional business, particularly related to travel activity, remains weak, affecting revenue growth.
Ladies and gentlemen, thank you for standing by. Welcome, and thank you for joining the SAP Q3 2025 inancial results conference call. (Operator Instructions)
I would now like to turn the conference over to Alexandra Steiger, Global Head of Investor Relations. Please go ahead.
Good evening, everyone, and welcome. Thank you for joining us. With me today are CEO, Christian Klein; and CFO, Dominik Asam. On this call, we will discuss SAP's third-quarter '25 results. You can find the deck supplementing this call as well as our quarterly statement on our Investor Relations website.
During this call, we will make forward-looking statements, which are predictions, projections or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to differ materially. Additional information regarding these risks and uncertainties may be found in our filings with the SEC
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