SAP cloud revenues jump 23% as business AI adoption accelerates across enterprise customers

SAP cloud revenues rise on AI boost - with more to come, says CEO Christian Klein

A strong end to 2025 for SAP with total revenue of €36.80 billion, up 11% year-on-year, with net income of €7.492 billion. Total Q4 revenue grew nine percent to €9.68 billion euros with net income of €1.89 billion. Cloud business came in at €5.61 billion for Q4, up 26%, and €21.023 billion for the full year, up 23% year-on-year. Fresh from last week's World Economic Forum gathering in Davos, CEO Christian Klein talked up customer interest in AI as a driver for growth, noting that more than 2/3 of Q4 cloud order entry included business AI, up more than 20% on Q3: What we see is actually in the cloud base, a healthy penetration of our AI, around about 60% of our customers are already using our AI actively, 20% are on the way to it. He added: More and more customers and partners are turning to SAP to gain real business value from AI. Why? Because they realize that they don't gain value by developing a number of custom AI agents or by applying commodity Large Language Models on top of transactional business applications. The formula for gaining value from AI as an enterprise is becoming clear. It's important to re-imagine first how AI will change existing business models and mission-critical business processes and to boost process automation and efficiency, AI agents must be embedded in business processes and trained with context-rich business data that is not available with Large Language Model providers. Q4 wins included Adidas, L'Oréal, Pirelli, Nokia, and the US Navy. That last win was significant: Now almost half of our order entry, we have also expanded our software and cloud capabilities and continue to see high demand for our offerings in the public sector. In Q4, for example, we closed a new one GAF agreement with the US General World Services Administration and with the HMRC in the UK. Deals are also getting larger, he added: The vast majority of our cloud customers are expanding their SAP footprint across the SAP business suite. They now clearly see the value of best of suite over best of fleet, especially in the age of AI. So they leverage the best of set of suite not only to run their business processes end to end, but they also seek a harmonized data platform that provides the foundation for high-value business AI. As a result, in Q4 alone, almost 2/3 of our deals exceeding €1 million involved four or more lines of business, a remarkable increase of 25 percentage points.

SAP outlines path to €10B free cash flow in 2026 amid rising AI-driven cloud momentum (NYSE:SAP)

Earnings Call Insights: SAP SE (SAP) Q4 2025 Management View * CEO Christian Klein highlighted that "more than 2/3 of our Q4 cloud order entry includes business AI, increasing by more than 20 percentage points compared with Q3," and noted that "90% of [the] 50 largest deals in This article was automatically generated by an AI tool based on content available on the Seeking Alpha website, and has not been curated or reviewed by humans. Due to inherent limitations in using AI-based tools, the accuracy, completeness, or timeliness of such articles cannot be guaranteed. This article is intended for informational purposes only. Seeking Alpha does not take account of your objectives or your financial situation and does not offer any personalized investment advice. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Record cloud backlog and revenue growth are driven by increased business AI adoption, migration to cloud ERP, larger deals, and strong uptake among major global customers. AI adoption is leading to higher deal sizes, cost efficiency targets, setting new product standards, and is central to SAP's growth and market share expansion plans through 2027. Near-term risks include deal phasing, revenue recognition timing, especially for large or government deals, and extended deal cycles due to geopolitical tensions and sovereign SaaS demands.