Interim report
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1/28 Quarterly Statement Q4 2025 SAP meets revenue and exceeds non-IFRS operating profit and free cash flow outlook for FY2025 Total cloud backlog up 22% and up 30% at constant currencies Current cloud backlog up 16% and up 25% at constant currencies Cloud revenue up 23% and up 26% at constant currencies in FY2025 Cloud ERP Suite revenue up 28% and up 32% at constant currencies in FY2025 Total revenue up 8% and up 11% at constant currencies in FY2025 IFRS operating profit up 111%, non-IFRS operating profit up 28% and up 31% at constant currencies in FY2025 SAP announces a new, two-year share repurchase program with a volume of up to €10 billion FY 2025 | in € millions, unless otherwise stated Cloud ERP Suite revenue Cloud revenueCloud & Software revenue Total revenueCurrent cloud backlog 18,11921,02332,53836,80021,052 +28% (+32% @cc) +23% (+26% @cc) +9% (+12% @cc) +8% (+11% @cc) +16% (+25% @cc) Operating cash flow Earnings per Share (in €) Operating profitGross profit (Gross margin) Cloud gross profit (Cloud gross margin) 9,156 +76% dilutedIFRS basicIFRSIFRSIFRS 6.246.289,83026,942 (73.2%)15,607 (74.2%) Free cash flow +135% +135% +111% +8% +25% Non-IFRS basicNon-IFRSNon-IFRSNon-IFRS 8,2396.1510,41927,145 (73.8%)15,757 (75.0%) +95% +36% +28% (+31% @cc) +9% (+11% @cc) +25% (+29% @cc) Quarterly Statement Q4 2025
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2/28 Quarterly Statement Q4 2025 Walldorf, Germany – January 29, 2026 SAP SE (NYSE: SAP) announced today its financial results for the fourth quarter and fiscal year ended December 31, 2025. Christian Klein, CEO: Q4 was a strong cloud quarter, with bookings resulting in 30% Total Cloud Backlog growth to a record 77 billion Euros. The significant Current Cloud Backlog growth in Q4 has laid a strong foundation for accelerating Total Revenue growth through 2027. SAP Business AI has become a main driver for growth as it was included in two thirds of our Q4 cloud order entry, combined with strong AI adoption across the ERP Suite. Dominik Asam, CFO: We closed 2025 on a high note, delivering strong operating profit and free cash flow ahead of our expectations. This performance reflects focused execution, financial discipline, and the continued trust our customers place in us as the North Star for their digital transformation. As evidenced by continued strong growth well ahead of the market in SaaS and PaaS, and our ability to bring such growth down to the bottom line and Free Cash Flow, we are confident that our strategy and operational discipline will continue to drive long-term value creation. Financial Performance Group results at a glance – Fourth quarter 2025 IFRS Non-IFRS1 € million, unless otherwise stated Q4 2025 Q4 2024 ∆ in % Q4 2025 Q4 2024 ∆ in % ∆ in % const. curr. SaaS/PaaS 5,532 4,585 21 5,532 4,585 21 27 Thereof Cloud ERP Suite2 4,862 3,948 23 4,862 3,948 23 30 Thereof Extension Suite3 670 636 5 670 636 5 10 IaaS4 78 123 –37 78 123 –37 –33 Cloud revenue 5,610 4,708 19 5,610 4,708 19 26 Cloud and software revenue 8,618 8,267 4 8,618 8,267 4 10 Total revenue 9,684 9,377 3 9,684 9,377 3 9 Share of more predictable revenue (in %) 84 81 3pp 84 81 3pp Cloud gross profit 4,106 3,429 20 4,185 3,458 21 27 Gross profit 7,044 6,943 1 7,175 6,972 3 8 Operating profit (loss) 2,554 2,016 27 2,829 2,436 16 21 Profit (loss) after tax 1,896 1,616 17 1,896 1,619 17 Earnings per share - Basic (in €) 1.58 1.37 15 1.62 1.40 16 Net cash flows from operating activities 1,297 –584 NA Free cash flow 1,034 –908 NA 1 For a breakdown of the individual adjustments see table “Non-IFRS Operating Expense Adjustments by Functional Areas” in this Quarterly Statement. 2 Cloud ERP Suite references the portfolio of strategic Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) solutions that are tightly integrated with our core ERP solutions and are included in key commercial packages, such as RISE with SAP. Further, Cloud ERP Suite also includes cloud-based capabilities enabling our customers’ ERP landscapes and their cloud transformation. The following offerings contribute to Cloud ERP Suite revenue: SAP Cloud ERP, SAP Business Technology Platform, financial - and spend management, supply chain management, core solutions for human capital management, commerce, business transformation management and AI. 3 Extension Suite references SAP’s remaining SaaS and PaaS solutions that supplement and extend the functional coverage of the Cloud ERP Suite. 4 Infrastructure as a service (IaaS): The major portion of IaaS comes from SAP HANA Enterprise Cloud.
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3/28 Quarterly Statement Q4 2025 Group results at a glance – Full year 2025 IFRS Non-IFRS1 € million, unless otherwise stated Q1–Q4 2025 Q1-Q4 2024 ∆ in % Q1–Q4 2025 Q1-Q4 2024 ∆ in % ∆ in % const. curr. SaaS/PaaS 20,678 16,601 25 20,678 16,601 25 28 Thereof Cloud ERP Suite revenue2 18,119 14,165 28 18,119 14,165 28 32 Thereof Extension Suite revenue3 2,559 2,436 5 2,559 2,436 5 8 IaaS4 345 540 –36 345 540 –36 –34 Cloud revenue 21,023 17,141 23 21,023 17,141 23 26 Cloud and software revenue 32,538 29,830 9 32,538 29,830 9 12 Total revenue 36,800 34,176 8 36,800 34,176 8 11 Share of more predictable revenue (in %) 86 83 3pp 86 83 3pp Cloud gross profit 15,607 12,481 25 15,757 12,559 25 29 Gross profit 26,942 24,932 8 27,145 25,011 9 11 Operating profit (loss) 9,830 4,665 >100 10,419 8,153 28 31 Profit (loss) after tax 7,492 3,150 >100 7,176 5,279 36 Earnings per share - Basic (in €) 6.28 2.68 >100 6.15 4.53 36 Net cash flows from operating activities 9,156 5,207 76 Free cash flow 8,239 4,222 95 1 For a breakdown of the individual adjustments see table “Non-IFRS Operating Expense Adjustments by Functional Areas” in this Quarterly Statement. 2 Cloud ERP Suite references the portfolio of strategic Software-as-a-Service (SaaS) and Platform-as-a-Service (PaaS) solutions that are tightly integrated with our core ERP solutions and are included in key commercial packages, such as RISE with SAP. Further, Cloud ERP Suite also includes cloud-based capabilities enabling our customers’ ERP landscapes and their cloud transformation. The following offerings contribute to Cloud ERP Suite revenue: SAP Cloud ERP, SAP Business Technology Platform, financial - and spend management, supply chain management, core solutions for human capital management, commerce, business transformation management and AI. 3 Extension Suite references SAP’s remaining SaaS and PaaS solutions that supplement and extend the functional coverage of the Cloud ERP Suite. 4 Infrastructure as a service (IaaS): The major portion of IaaS comes from SAP HANA Enterprise Cloud . Financial Highlights1 Fourth Quarter 2025 In the fourth quarter, current cloud backlog grew by 16% to €21.05 billion and was up 25% at constant currencies. Large transformational deals with high cloud revenue ramps in outer years and termination for convenience clauses required by law negatively impacted fourth quarter constant currency current cloud backlog growth by approximately 1 percentage point. Cloud revenue was up 19% to €5.61 billion and up 26% at constant currencies. Cloud ERP Suite revenue was up 23% to €4.86 billion and up 30% at constant currencies. Software licenses revenue decreased by 34% to €0.45 billion and was down 31% at constant currencies. Cloud and software revenue was up 4% to €8.62 billion and up 10% at constant currencies. Services revenue was down 4% to €1.07 billion and flat at constant currencies. Total revenue was up 3% to €9.68 billion and up 9% at constant currencies. The share of more predictable revenue increased by 3 percentage points to 84%. IFRS cloud gross profit was up 20% to €4.11 billion. Non-IFRS cloud gross profit was up 21% to €4.18 billion and was up 27% at constant currencies. IFRS cloud gross margin was up 0.4 percentage points to 73.2%, non-IFRS cloud gross margin up 1.1 percentage points to 74.6% and up 0.9 percentage points at constant currencies to 74.3%. IFRS operating profit increased 27% to €2.55 billion and IFRS operating margin was up 4.9 percentage points to 26.4%. Non-IFRS operating profit was up 16% to €2.83 billion and was up 21% at constant currencies. Non-IFRS operating margin increased by 3.2 percentage points to 29.2% and was up 3.0 percentage points to 29.0% at constant currencies. IFRS and non-IFRS operating profit growth were negatively impacted by approximately €0.1 billion related to a 2025 workforce transformation. In addition, IFRS operating profit growth was negatively impacted by approximately €0.2 billion related to Teradata litigation expenses (see section (N) Teradata Litigation Matter). 1 The Q4 2025 results were also impacted by other effects. For details, please refer to the disclosures on page 27 of this document.
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4/28 Quarterly Statement Q4 2025 IFRS earnings per share (basic) increased 15% to €1.58. Non-IFRS earnings per share (basic) increased 16% to €1.62. IFRS effective tax rate was 31.5% and non-IFRS effective tax rate was 33.1%. Both were mainly driven by tax effects relating to taxes for prior years. Operating cash flow in the fourth quarter increased from -€0.58 billion to €1.30 billion and free cash flow increased from -€0.91 billion to €1.03 billion. The increase was mainly attributable to lower restructuring payments and further supported by lower payouts for share-based compensation and capex. Full Year 2025 SAP performed against its financial outlook as follows: Actual 2024 2025 Outlook (as of January 28) Revised 2025 Outlook (as of October 22) Actual 2025 Cloud revenue (at constant currencies) €17.14 billion €21.6 – 21.9 billion €21.6 – 21.9 billion towards the lower end of the outlook range €21.66 billion Cloud and software revenue (at constant currencies) €29.83 billion €33.1 – 33.6 billion €33.1 – 33.6 billion €33.44 billion Operating profit (non-IFRS, at constant currencies) €8.15 billion €10.3 – 10.6 billion €10.3 – 10.6 billion towards the upper end of the outlook range €10.66 billion Free cash flow €4.22 billion approx. €8 billion €8.0 – 8.2 billion €8.24 billion Effective tax rate (non-IFRS) 32.3% approx. 32% approx. 32% 30.4% Current cloud backlog (at constant currencies) 29% to slightly decelerate to slightly decelerate 25% As of December 31, total cloud backlog was up 22% to €77.29 billion and up 30% at constant currencies. Cloud revenue for the full year was up 23% to €21.02 billion and up 26% at constant currencies. Cloud ERP Suite revenue was up 28% to €18.12 billion and up 32% at constant currencies. Subscription revenue2 was up 22% to €21.33 billion and up 26% at constant currencies. Software licenses revenue was down 29% to €0.99 billion and down 27% at constant currencies. Cloud and software revenue was up 9% to €32.54 billion and up 12% at constant currencies. Services revenue was down 2% to €4.26 billion and up 1% at constant currencies. Total revenue was up 8% to €36.80 billion and up 11% at constant currencies. The share of more predictable revenue increased by 3 percentage points year over year to 86% for the full year 2025. IFRS cloud gross profit was up 25% to €15.61 billion. Non-IFRS cloud gross profit was up 25% to €15.76 billion and was up 29% at constant currencies. IFRS cloud gross margin was up 1.4 percentage points to 74.2%, non-IFRS cloud gross margin up 1.7 percentage points to 75.0% and up 1.6 percentage points at constant currencies. IFRS operating profit was up 111% to €9.83 billion and IFRS operating margin increased by 13.1 percentage points to 26.7%. IFRS operating profit growth was positively impacted by a restructuring expense decline of approximately €3.1 billion as compared to full year 2024 in connection with the 2024 transformation program and negatively impacted by approximately €0.2 billion related to Teradata litigation expenses (see section (N) Teradata Litigation Matter). Non-IFRS operating profit increased by 28% to €10.42 billion and increased by 31% at constant currencies, non-IFRS operating margin increased by 4.5 percentage points to 28.3% and was up 4.3 percentage points to 28.2% at constant currencies. IFRS and non-IFRS operating profit growth were negatively impacted by approximately €0.1 billion as a result of a change in case law that affected SAP's other tax litigation as well as approximately €0.2 billion related to a 2025 workforce transformation. IFRS earnings per share (basic) increased by 135% to €6.28 and non-IFRS earnings per share (basic) increased 36% to €6.15. IFRS effective tax rate was 28.5% and non-IFRS effective tax rate was 30.4%. The IFRS effective tax rate is lower than the non-IFRS effective tax rate due to tax benefits from tax-exempt income. For the full year, operating cash flow was up 76% to €9.16 billion and free cash flow increased by 95% to €8.24 billion. The increase was mainly attributable to higher profitability and to lower payments for restructuring and share-based compensation. At year end, net liquidity was €3.38 billion. 2 The subscription revenue measure is the sum of cloud revenue and revenue from time-based on-premise software licenses, which allow our customers to use our software for a specific, predefined period, and the associated software support. Revenue from time-based on-premise licenses is recognized at a point in time, whereas revenue from the associated software support is recognized over time.
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5/28 Quarterly Statement Q4 2025 Non-Financial Performance 2025 In 2025, our Customer NPS decreased 3 points year over year to 9 (2024: 12), which is below our target range of 12 to 16. The decrease was driven primarily by lower NPS scores from on-premise customers who have yet to transition to cloud. Overall NPS scores for cloud-oriented customers remained steady year over year, while increasing in the enterprise segment. The Employee Engagement Index for the full year 2025 increased 2 percentage points year over year to 76% (2024: 74%), at the midpoint of the target range of 74% to 78%. The Business Health Culture Index increased one percentage point to 81% (2024: 80%), at the midpoint of the target range of 80% to 82%. Total carbon emissions decreased to 6.3 Mt in 2025 (2024: 6.9 Mt), in line with our guidance for a steady decrease across the relevant value chain. New Share Repurchase Program Following SAP’s strong free cash flow generation, the Executive Board and the Supervisory Board have authorized a new share repurchase program with a volume of up to €10 billion. It is scheduled to start in February 2026 and expected to be completed by the end of 2027. The program will be implemented based on the authorization granted by the Annual General Meeting of SAP SE on May 11, 2023, and in compliance with the restrictions set forth therein. The new share repurchase program follows SAP’s 2020, 2022 and 2023-2025 repurchases of around 56 million shares for about €8.0 billion. 2024 Transformation Program: Focus on scalability of operations and key strategic growth areas In January 2024, SAP announced a company-wide restructuring program which concluded as planned in the first quarter 2025. Overall expenses associated with the program were approximately €3.2 billion. Restructuring payouts amounted to €2.5 billion for the full-year 2024 and €0.8 billion for the full year 2025. Business Highlights In the fourth quarter, customers around the globe continued to choose the “RISE with SAP” journey to drive their end-to-end business transformations. These customers included: A2A, adidas, Bertelsmann, BioNTech, Daimler Truck, Deloitte, Électricité de France, Ferring Pharmaceuticals, Fresenius Digital Technology, Galenica, H&M Group, His Majesty’s Revenue & Customs, Jabil, KEBA Group, Kirin Holdings, Nokia, Pirelli, RTX, s.Oliver Group, Sigma Healthcare, Sun Chemical, Tokio Marine & Nichido Fire Insurance, Toyota, Ultragaz, and Weir Group. Dexco, Lockheed Martin, Rolls-Royce SMR, and SA Power Networks went live on SAP S/4HANA Cloud in the fourth quarter. A. Darbo, BSI, FUNKE Media Group, KPMG, Müller Holding, and Snowflake chose “GROW with SAP”, a journey helping customers adopt cloud ERP with speed, predictability, and continuous innovation. Key customer wins across SAP’s solution portfolio included: Bank of Italy, Coop, Deutsche Bundesbank, Hilti, Marubeni IT Solutions, Mondelez International, Robert Bosch, Schaeffler Group, Tech Mahindra, XXXLutz, Zalando, and Zespri Group. Fressnapf, Globe, Origin Energy, Sartorius, and WATERALIA went live on SAP solutions. In the fourth quarter, SAP’s cloud revenue performance was particularly strong in AP J and EMEA and solid in the Americas region. Brazil, Canada, Germany, India, Italy, South Korea, Spain and the United Kingdom had outstanding performance, while Australia, Japan, Mexico, Saudi Arabia, Singapore and the U.S. were particularly strong. For the full year, Brazil, France, Germany, India, Italy, South Korea and Spain all had outstanding performances in cloud revenue while China, Japan, Saudi Arabia, the United Kingdom and the U.S. were particularly strong. On November 4, SAP and Snowflake announced a new collaboration to enable organizations to leverage Snowflake’s AI Data Cloud and SAP Business Data Cloud (SAP BDC) together with semantically rich data. On November 14, SAP reaffirmed its commitment to fair competition amid EU review. On November 18, SAP announced a new collaboration with France’s AI sector, which includes new and expanded partnerships with Bleu, Capgemini and Mistral AI. On November 27, SAP announced the next stage of its vision for European digital sovereignty with the launch of EU AI Cloud. SAP now offers a truly full-stack sovereign cloud offering, empowering customers to select the right level of sovereignty and deployment for their needs, whether in SAP’s own data centers, on trusted European infrastructure or as a fully managed solution on-site.
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6/28 Quarterly Statement Q4 2025 Outlook 2026 Financial Outlook 2026 For 2026, SAP expects: • €25.8 – 26.2 billion cloud revenue at constant currencies (2025: €21.02 billion), up 23% to 25% at constant currencies. • €36.3 – 36.8 billion cloud and software revenue at constant currencies (2025: €32.54 billion), up 12% to 13% at constant currencies. • €11.9 – 12.3 billion non-IFRS operating profit at constant currencies (2025: €10.42 billion), up 14% to 18% at constant currencies. • Approximately €10 billion free cash flow at actual currencies (2025: €8.24 billion). • An effective tax rate (non-IFRS) of approximately 29% (2025: 30.4%)3. • Constant currency current cloud backlog growth to slightly decelerate in 2026 (2025: 25%). SAP further expects: • Constant currency total revenue growth to accelerate through 2027. • Total operating expenses to grow at 80% to 90% of total revenue growth in 2027. • Constant currency software support revenue decline rate to accelerate in the coming years as a consequence of an acceleration of customers transforming to the cloud. While SAP’s 2026 financial outlook for the income statement parameters is at constant currencies (including an average exchange rate of 1.13 USD per EUR), actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the company progresses through the year, as reflected in the table below. Currency Impact Assuming December 31, 2025 Rates Apply for 2026 In percentage points Q1 2026 FY 2026 Cloud revenue growth -8.0pp -3.0pp Cloud and software revenue growth -7.0pp -2.5pp Operating profit growth (non-IFRS) -8.0pp -3.5pp This includes an exchange rate of 1.18 USD per EUR. Non-Financial Outlook 2026 For 2026, SAP expects: • Cloud Customer Satisfaction4 (Cloud CSAT) to be in a range of 75% to 76% (2025: 75%). • The Employee Engagement Index to be in a range of 74% to 78% (2025: 76%). • The Business Health Culture Index (BHCI) to be in a range of 80% to 82% (2025: 81%). • To steadily decrease carbon emissions5 across the relevant value chain (2025: 3.5 Mt). 3 The effective tax rate (non-IFRS) is a non-IFRS financial measure and is presented for supplemental informational purposes only. We do not provide an outlook for the effective tax rate (IFRS) due to the uncertainty and potential variability of gains and losses associated with equity securities, which are reconciling items between the two effective tax rates (non- IFRS and IFRS). These items cannot be provided without unreasonable efforts but could have a significant impact on our future effective tax rate (IFRS). 4 For 2026 and onward, SAP is adopting Cloud Customer Satisfaction (Cloud CSAT) as its new customer experience KPI, as this metric better aligns to SAP’s cloud-first strategy. For more information, see the Other Disclosures section. 5 In 2026, we will update the calculation methodology for the Use of Sold Products KPI, to a forward-looking approach that considers the estimated emissions during the lifetime of all new systems sold within a specific period. This change results in a significant decrease in reported emissions and therefore leads to a rebaselining according to the GHG-Protocol. For more information, see the Other Disclosures section.
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7/28 Quarterly Statement Q4 2025 Additional Information This quarterly statement and all information therein is preliminary and unaudited. Due to rounding, numbers may not add up precisely. SAP Performance Measures For more information about our key growth metrics and performance measures, their calculation, their usefulness, and their limitations, please refer to the following document on our Investor Relations website: https://www.sap.com/investors/en/financial- documents-and-events/reporting-framework.html. Webcast SAP senior management will host a financial analyst conference call on Thursday, January 29th at 07:00 AM (CET) / 06:00 AM (GMT) / 1:00 AM (EST) / Wednesday, January 28th 10:00 PM (PST), followed by a press conference at 10:00 AM (CET) / 9:00 AM (GMT) / 4:00 AM (EST) / 1:00 AM (PST). Both conferences will be webcast on the Company’s website at https://www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the fourth quarter and full-year 2025 results can be found at https://www.sap.com/investor. About SAP As a global leader in enterprise applications and business AI, SAP (NYSE: SAP) stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit www.sap.com. For more information, financial community only: Alexandra Steiger +49 (6227) 7-767336 investor@sap.com, CET Follow SAP Investor Relations on LinkedIn at SAP Investor Relations. For more information, press only: Marcus Winkler +46 (6227) 7-67497 marcus.winkler@sap.com, CET Daniel Reinhardt +49 (6227) 7-40201 daniel.reinhardt@sap.com, CET For customers interested in learning more about SAP products: Global Customer Center: +49 180 534-34-24 United States Only: +1 (800) 872-1SAP (+1-800-872-1727) Note to editors: To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP’s 2024 Annual Report on Form 20-F. © 2026 SAP SE. All rights reserved. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see https://www.sap.com/copyright for additional trademark information and notices.
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8/28 Quarterly Statement Q4 2025 Contents Financial and Non-Financial Key Facts (IFRS and Non-IFRS) 9 Primary Financial Statements of SAP Group (IFRS) 11 (A) Consolidated Income Statements ................................ ................................ ................................ ................................ ................................ ................................ ......... 11 (B) Consolidated Statements of Financial Position ................................ ................................ ................................ ................................ ................................ .......... 13 (C) Consolidated Statements of Cash Flows ................................ ................................ ................................ ................................ ................................ ......................... 14 Non-IFRS Numbers 15 (D) Basis of Non-IFRS Presentation ................................ ................................ ................................ ................................ ................................ ................................ ................ 15 (E) Reconciliation from Non-IFRS Numbers to IFRS Numbers ................................ ................................ ................................ ................................ ................ 15 (F) Non-IFRS Adjustments – Actuals and Estimates ................................ ................................ ................................ ................................ ................................ ........ 20 (G) Non-IFRS Operating Expense Adjustments by Functional Areas ................................ ................................ ................................ ................................ . 20 Disaggregations 22 (H) Segment Reporting ................................ ................................ ................................ ................................ ................................ ................................ ................................ ............. 22 (I) Revenue by Region (IFRS and Non-IFRS) ................................ ................................ ................................ ................................ ................................ ........................ 24 (J) Employees by Region and Functional Areas ................................ ................................ ................................ ................................ ................................ ................. 26 Other Disclosures 27 (K) Share-Based Payment ................................ ................................ ................................ ................................ ................................ ................................ ................................ ..... 27 (L) Business Combinations ................................ ................................ ................................ ................................ ................................ ................................ ................................ ... 27 (M) Tax-related Litigation ................................ ................................ ................................ ................................ ................................ ................................ ................................ ......... 27 (N) Teradata Litigation Matter ................................ ................................ ................................ ................................ ................................ ................................ ............................. 27 (O) Changes to Our Financial Key Measures ................................ ................................ ................................ ................................ ................................ .......................... 28 (P) Changes to Our Non-Financial Key Measures ................................ ................................ ................................ ................................ ................................ .............. 28
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9/28 Quarterly Statement Q4 2025 Financial and Non-Financial Key Facts (IFRS and Non-IFRS) € millions, unless otherwise stated Q1 2024 Q2 2024 Q3 2024 Q4 2024 TY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 TY 2025 Revenues Cloud 3,928 4,153 4,351 4,708 17,141 4,993 5,130 5,290 5,610 21,023 % change – yoy 24 25 25 27 25 27 24 22 19 23 % change constant currency – yoy 25 25 27 27 26 26 28 27 26 26 Cloud ERP Suite 3,167 3,414 3,636 3,948 14,165 4,251 4,422 4,586 4,862 18,119 % change – yoy 31 33 34 35 33 34 30 26 23 28 % change constant currency – yoy 32 33 36 35 34 33 34 31 30 32 Software licenses 203 229 285 683 1,399 183 194 161 452 990 % change – yoy –26 –28 –15 –18 –21 –10 –15 –43 –34 –29 % change constant currency – yoy –25 –27 –14 –19 –21 –10 –13 –42 –31 –27 Software support 2,829 2,792 2,793 2,876 11,290 2,761 2,642 2,565 2,557 10,525 % change – yoy –3 –3 –3 1 –2 –2 –5 –8 –11 –7 % change constant currency – yoy –1 –3 –2 1 –1 –3 –3 –5 –7 –5 Total revenue 8,041 8,288 8,470 9,377 34,176 9,013 9,027 9,076 9,684 36,800 % change – yoy 8 10 9 11 10 12 9 7 3 8 % change constant currency – yoy 9 10 10 10 10 11 12 11 9 11 Profits Operating profit (loss) (IFRS) –787 1,222 2,214 2,016 4,665 2,333 2,456 2,487 2,554 9,830 Operating profit (loss) (non-IFRS) 1,533 1,940 2,244 2,436 8,153 2,455 2,568 2,566 2,829 10,419 % change - yoy 16 33 27 24 25 60 32 14 16 28 % change constant currency - yoy 19 35 28 24 26 58 35 19 21 31 Profit (loss) after tax (IFRS) –824 918 1,441 1,616 3,150 1,796 1,749 2,051 1,896 7,492 Profit (loss) after tax (non-IFRS) 944 1,278 1,437 1,619 5,279 1,681 1,747 1,852 1,896 7,176 % change - yoy 9 60 6 24 22 78 37 29 17 36 Margins Cloud gross margin (IFRS, in %) 72.2 73.0 73.2 72.8 72.8 74.5 74.7 74.6 73.2 74.2 Cloud gross margin (non-IFRS, in %) 72.5 73.3 73.7 73.5 73.3 75.0 75.2 75.1 74.6 75.0 Gross margin (IFRS, in %) 71.7 72.6 73.3 74.0 73.0 73.3 73.3 73.5 72.7 73.2 Gross margin (non-IFRS, in %) 71.8 72.7 73.6 74.3 73.2 73.6 73.6 73.8 74.1 73.8 Operating margin (IFRS, in %) –9.8 14.7 26.1 21.5 13.6 25.9 27.2 27.4 26.4 26.7 Operating margin (non-IFRS, in %) 19.1 23.4 26.5 26.0 23.9 27.2 28.5 28.3 29.2 28.3 Order Entry and current cloud backlog Current cloud backlog 14,179 14,808 15,377 18,078 18,078 18,202 18,052 18,839 21,052 21,052 % change – yoy 27 28 25 32 32 28 22 23 16 16 % change constant currency – yoy 28 28 29 29 29 29 28 27 25 25 Share of cloud orders greater than €5 million based on total cloud order entry volume (in %) 52 52 64 68 63 54 53 63 71 65 Share of cloud orders smaller than €1 million based on total cloud order entry volume (in %) 21 20 16 11 15 20 20 16 10 14 Liquidity and Cash Flow Net cash flows from operating activities 2,878 1,509 1,403 –584 5,207 3,780 2,577 1,502 1,297 9,156 Free cash flow 2,642 1,288 1,200 –908 4,222 3,583 2,357 1,266 1,034 8,239 Cash and cash equivalents 9,295 7,870 10,005 9,609 9,609 11,345 7,942 8,554 8,220 8,220 Group liquidity 13,411 11,449 11,856 11,080 11,080 12,760 9,788 9,688 9,531 9,531 Financial debt (–) –7,770 –7,776 –8,996 –9,385 –9,385 –8,121 –7,492 –7,235 –6,150 –6,150 Net liquidity (+) / Net debt(–) 5,641 3,674 2,860 1,695 1,695 4,639 2,297 2,453 3,381 3,381 Non-Financials Number of employees (quarter end) 1 108,133 105,315 107,583 109,121 109,121 108,187 108,929 110,730 110,650 110,650
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10/28 Quarterly Statement Q4 2025 € millions, unless otherwise stated Q1 2024 Q2 2024 Q3 2024 Q4 2024 TY 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 TY 2025 Gross greenhouse gas emissions (scope 1, 2, 3 / market-based)2 (in million tons CO2 equivalents) 1.8 1.8 1.8 1.8 6.9 1.6 1.6 1.6 1.5 6.3 1 In full-time equivalents. 2 Our gross greenhouse gas emissions (GHG) include the total lifecycle emissions resulting from the use of our on-premise software. The calculation of use of sold products emissions is based on the number of active maintenance contracts at quarter end. Therefore, the emissions for individual quarters will not add up to the total sum of GHG emissions at year end.
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11/28 Quarterly Statement Q4 2025 Primary Financial Statements of SAP Group (IFRS) (A) Consolidated Income Statements (A.1) Consolidated Income Statements – Quarter € millions, unless otherwise stated Q4 2025 Q4 2024 ∆ in % Cloud 5,610 4,708 19 Software licenses 452 683 –34 Software support 2,557 2,876 –11 Software licenses and support 3,008 3,559 –15 Cloud and software 8,618 8,267 4 Services 1,066 1,110 –4 Total revenue 9,684 9,377 3 Cost of cloud –1,504 –1,279 18 Cost of software licenses and support –340 –319 7 Cost of cloud and software –1,844 –1,598 15 Cost of services –796 –837 –5 Total cost of revenue –2,640 –2,435 8 Gross profit 7,044 6,943 1 Research and development –1,698 –1,675 1 Sales and marketing –2,303 –2,496 –8 General and administration –465 –378 23 Restructuring –3 –323 –99 Other operating income/expense, net –21 –54 –60 Total operating expenses –7,130 –7,361 –3 Operating profit (loss) 2,554 2,016 27 Other non-operating income/expense, net 65 –83 NA Finance income 665 578 15 Finance costs –517 –305 70 Financial income, net 147 273 –46 Profit (loss) before tax 2,767 2,207 25 Income tax expense –871 –591 47 Profit (loss) after tax 1,896 1,616 17 Attributable to owners of parent 1,846 1,601 15 Attributable to non-controlling interests 50 15 >100 Earnings per share, basic (in €) 1 1.58 1.37 15 Earnings per share, diluted (in €) 1 1.57 1.36 16 1 For the three months ended December 31, 2025 and 2024, the weighted average number of shares was 1,166 million (diluted 1,172 million) and 1,165 million (diluted: 1,176 million), respectively (treasury stock excluded).
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12/28 Quarterly Statement Q4 2025 (A.2) Consolidated Income Statements – Year-to-Date € millions, unless otherwise stated Q1–Q4 2025 Q1–Q4 2024 ∆ in % Cloud 21,023 17,141 23 Software licenses 990 1,399 –29 Software support 10,525 11,290 –7 Software licenses and support 11,515 12,689 –9 Cloud and software 32,538 29,830 9 Services 4,262 4,346 –2 Total revenue 36,800 34,176 8 Cost of cloud –5,416 –4,660 16 Cost of software licenses and support –1,249 –1,262 –1 Cost of cloud and software –6,665 –5,922 13 Cost of services –3,193 –3,321 –4 Total cost of revenue –9,858 –9,243 7 Gross profit 26,942 24,932 8 Research and development –6,633 –6,514 2 Sales and marketing –8,879 –9,090 –2 General and administration –1,548 –1,435 8 Restructuring –3 –3,144 –100 Other operating income/expense, net –49 –85 –43 Total operating expenses –26,970 –29,511 –9 Operating profit (loss) 9,830 4,665 >100 Other non-operating income/expense, net 118 –298 NA Finance income 1,911 1,429 34 Finance costs –1,377 –1,031 34 Financial income, net 534 398 34 Profit (loss) before tax 10,482 4,764 >100 Income tax expense –2,991 –1,614 85 Profit (loss) after tax 7,492 3,150 >100 Attributable to owners of parent 7,327 3,124 >100 Attributable to non-controlling interests 165 26 >100 Earnings per share, basic (in €) 1 6.28 2.68 >100 Earnings per share, diluted (in €) 1 6.24 2.65 >100 1 For the full year 2025 and 2024, the weighted average number of shares was 1,166 million (diluted: 1,175 million) and 1,166 million (diluted: 1,180 million), respectively (treasury stock excluded).
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13/28 Quarterly Statement Q4 2025 (B) Consolidated Statements of Financial Position as at 12/31/2025 and 12/31/2024 € millions 2025 2024 Cash and cash equivalents 8,220 9,609 Other financial assets 1,552 1,629 Trade and other receivables 6,675 6,774 Other non-financial assets 3,212 2,682 Tax assets 598 707 Total current assets 20,256 21,401 Goodwill 29,014 31,264 Intangible assets 2,282 2,706 Property, plant, and equipment 4,497 4,493 Other financial assets 7,269 7,141 Trade and other receivables 218 209 Other non-financial assets 4,419 3,990 Tax assets 244 359 Deferred tax assets 2,163 2,674 Total non-current assets 50,106 52,836 Total assets 70,362 74,237 € millions 2025 2024 Trade and other payables 2,431 1,988 Tax liabilities 1,015 585 Financial liabilities 2,050 4,277 Other non-financial liabilities 4,849 5,537 Provisions 324 716 Contract liabilities 6,581 5,978 Total current liabilities 17,250 19,082 Trade and other payables 2 10 Tax liabilities 562 512 Financial liabilities 6,021 7,169 Other non-financial liabilities 524 749 Provisions 550 494 Deferred tax liabilities 72 326 Contract liabilities 144 88 Total non-current liabilities 7,873 9,349 Total liabilities 25,123 28,431 Issued capital 1,229 1,229 Share premium 2,778 2,564 Retained earnings 47,511 42,907 Other components of equity 182 4,692 Treasury shares –6,948 –5,954 Equity attributable to owners of parent 44,752 45,438 Non-controlling interests 488 368 Total equity 45,239 45,806 Total equity and liabilities 70,362 74,237
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14/28 Quarterly Statement Q4 2025 (C) Consolidated Statements of Cash Flows € millions Q1–Q4 20251 Q1–Q4 2024 Profit (loss) after tax 7,492 3,150 Adjustments to reconcile profit (loss) after tax to net cash flows from operating activities: Depreciation and amortization 1,311 1,280 Share-based payment expense 1,695 2,385 Income tax expense 2,991 1,614 Financial income, net –534 –398 Increase/decrease in allowances on trade receivables 11 30 Other adjustments for non-cash items 94 110 Increase/decrease in trade and other receivables –388 –247 Increase/decrease in other assets –1,315 –632 Increase/decrease in trade payables, provisions, and other liabilities –521 603 Increase/decrease in contract liabilities 1,336 869 Share-based payments –817 –1,282 Income taxes paid, net of refunds –2,198 –2,277 Net cash flows from operating activities 9,156 5,207 Business combinations, net of cash and cash equivalents acquired –702 –1,114 Purchase of intangible assets and property, plant, and equipment –739 –797 Proceeds from sales of intangible assets and property, plant, and equipment 121 122 Purchase of equity or debt instruments of other entities –5,845 –6,401 Proceeds from sales of equity or debt instruments of other entities 5,779 7,533 Interest received 420 563 Net cash flows from investing activities –965 –93 Dividends paid –2,743 –2,565 Dividends paid on non-controlling interests –2 –1 Purchase of treasury shares –1,937 –2,106 Proceeds from borrowings 2 2,767 Repayments of borrowings –3,191 –1,185 Payments of lease liabilities –299 –310 Transactions with non-controlling interests 0 –11 Interest paid –574 –550 Net cash flows from financing activities –8,745 –3,961 Effect of foreign currency rates on cash and cash equivalents –836 333 Net increase/decrease in cash and cash equivalents –1,390 1,485 Cash and cash equivalents at the beginning of the period 9,609 8,124 Cash and cash equivalents at the end of the period 8,220 9,609 1 As of January 2025, SAP no longer classifies interest paid and interest received as a part of cash flows from operating activities.
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15/28 Quarterly Statement Q4 2025 Non-IFRS Numbers (D) Basis of Non-IFRS Presentation SAP disclose certain financial measures such as expense (non-IFRS) and profit measures (non-IFRS) that are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures. For a more detailed description of all of SAP’s non-IFRS measures and their limitations as well as SAP’s constant currency and free cash flow figures, see Explanation of Non-IFRS Measures. (E) Reconciliation from Non-IFRS Numbers to IFRS Numbers (E.1) Reconciliation of Non-IFRS Revenue – Quarter € millions, unless otherwise stated Q4 2025 Q4 2024 ∆ in % IFRS Currency Impact Non-IFRS Constant Currency IFRS IFRS Non-IFRS Constant Currency Revenue Numbers Cloud 5,610 313 5,923 4,708 19 26 Software licenses 452 22 474 683 –34 –31 Software support 2,557 111 2,668 2,876 –11 –7 Software licenses and support 3,008 133 3,141 3,559 –15 –12 Cloud and software 8,618 446 9,064 8,267 4 10 Services 1,066 50 1,115 1,110 –4 0 Total revenue 9,684 495 10,179 9,377 3 9
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16/28 Quarterly Statement Q4 2025 (E.2) Reconciliation of Non-IFRS Operating Expenses – Quarter € millions, unless otherwise stated Q4 2025 Q4 2024 ∆ in % IFRS Adj. Non- IFRS Currency Impact Non-IFRS Constant Currency IFRS Adj. Non- IFRS IFRS Non-IFRS Non-IFRS Constant Currency Operating Expense Numbers Cost of cloud –1,504 79 –1,425 –1,279 29 –1,250 18 14 Cost of software licenses and support –340 52 –288 –319 0 –319 7 –10 Cost of cloud and software –1,844 131 –1,713 –1,598 29 –1,569 15 9 Cost of services –796 0 –796 –837 0 –837 –5 –5 Total cost of revenue –2,640 131 –2,509 –2,435 29 –2,406 8 4 Gross profit 7,044 131 7,175 345 7,520 6,943 29 6,972 1 3 8 Research and development –1,698 1 –1,697 –1,675 2 –1,673 1 1 Sales and marketing –2,303 69 –2,234 –2,496 53 –2,443 –8 –9 General and administration –465 71 –393 –378 12 –366 23 7 Restructuring –3 3 0 –323 323 0 –99 NA Other operating income/expense, net –21 0 –21 –54 0 –54 –60 –60 Total operating expenses –7,130 275 –6,855 –371 –7,226 –7,361 420 –6,941 –3 –1 4 (E.3) Reconciliation of Non-IFRS Profit Figures, Income Tax, and Key Ratios – Quarter € millions, unless otherwise stated Q4 2025 Q4 2024 ∆ in % IFRS Adj. Non- IFRS Currency Impact Non-IFRS Constant Currency IFRS Adj. Non- IFRS IFRS Non-IFRS Non-IFRS Constant Currency Profit Numbers Operating profit (loss) 2,554 275 2,829 124 2,953 2,016 420 2,436 27 16 21 Other non-operating income/expense, net 65 0 65 –83 0 –83 NA NA Finance income 665 –549 115 578 –408 170 15 –32 Finance costs –517 341 –177 –305 94 –210 70 –16 Financial income, net 147 –209 –61 273 –314 –40 –46 52 Profit (loss) before tax 2,767 66 2,833 2,207 106 2,313 25 22 Income tax expense –871 –66 –937 –591 –103 –694 47 35 Profit (loss) after tax 1,896 0 1,896 1,616 3 1,619 17 17 Attributable to owners of parent 1,846 42 1,888 1,601 28 1,629 15 16 Attributable to non-controlling interests 50 –42 8 15 –24 –10 >100 NA Key Ratios Operating margin (in %) 26.4 29.2 29.0 21.5 26.0 4.9pp 3.2pp 3.0pp Effective tax rate (in %)1 31.5 33.1 26.8 30.0 4.7pp 3.1pp Earnings per share, basic (in €) 1.58 1.62 1.37 1.40 15 16 1 The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q4 2025 mainly resulted from tax effects of equity securities. The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in Q4 2024 mainly resulted from tax effects of restructuring expenses and equity securities.
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17/28 Quarterly Statement Q4 2025 (E.4) Reconciliation of Non-IFRS Revenue – Year-to-Date € millions, unless otherwise stated Q1–Q4 2025 Q1–Q4 2024 ∆ in % IFRS Currency Impact Non-IFRS Constant Currency IFRS IFRS Non-IFRS Constant Currency Revenue Numbers Cloud 21,023 637 21,661 17,141 23 26 Software licenses 990 31 1,020 1,399 –29 –27 Software support 10,525 229 10,754 11,290 –7 –5 Software licenses and support 11,515 259 11,774 12,689 –9 –7 Cloud and software 32,538 897 33,435 29,830 9 12 Services 4,262 107 4,369 4,346 –2 1 Total revenue 36,800 1,004 37,804 34,176 8 11 (E.5) Reconciliation of Non-IFRS Operating Expenses – Year-to-Date € millions, unless otherwise stated Q1–Q4 2025 Q1–Q4 2024 ∆ in % IFRS Adj. Non- IFRS Currency Impact Non-IFRS Constant Currency IFRS Adj. Non- IFRS IFRS Non-IFRS Non-IFRS Constant Currency Operating Expense Numbers Cost of cloud –5,416 150 –5,266 –4,660 78 –4,582 16 15 Cost of software licenses and support –1,249 52 –1,196 –1,262 0 –1,262 –1 –5 Cost of cloud and software –6,665 203 –6,463 –5,922 78 –5,844 13 11 Cost of services –3,193 1 –3,192 –3,321 1 –3,321 –4 –4 Total cost of revenue –9,858 203 –9,655 –9,243 79 –9,165 7 5 Gross profit 26,942 203 27,145 705 27,851 24,932 79 25,011 8 9 11 Research and development –6,633 5 –6,628 –6,514 5 –6,508 2 2 Sales and marketing –8,879 299 –8,580 –9,090 234 –8,856 –2 –3 General and administration –1,548 78 –1,470 –1,435 27 –1,409 8 4 Restructuring –3 3 0 –3,144 3,144 0 –100 NA Other operating income/expense, net –49 0 –49 –85 0 –85 –43 –43 Total operating expenses –26,970 589 –26,382 –762 –27,143 –29,511 3,489 –26,022 –9 1 4
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18/28 Quarterly Statement Q4 2025 (E.6) Reconciliation of Non-IFRS Profit Figures, Income Tax, and Key Ratios – Year-to-Date € millions, unless otherwise stated Q1–Q4 2025 Q1–Q4 2024 ∆ in % IFRS Adj. Non- IFRS Currency Impact Non-IFRS Constant Currency IFRS Adj. Non- IFRS IFRS Non-IFRS Non-IFRS Constant Currency Profit Numbers Operating profit (loss) 9,830 589 10,419 242 10,661 4,665 3,489 8,153 >100 28 31 Other non-operating income/expense, net 118 0 118 –298 0 –298 NA NA Finance income 1,911 –1,389 522 1,429 –777 652 34 –20 Finance costs –1,377 625 –751 –1,031 316 –715 34 5 Financial income, net 534 –764 –230 398 –461 –63 34 >100 Profit (loss) before tax 10,482 –175 10,307 4,764 3,028 7,792 >100 32 Income tax expense –2,991 –141 –3,132 –1,614 –899 –2,513 85 25 Profit (loss) after tax 7,492 –316 7,176 3,150 2,129 5,279 >100 36 Attributable to owners of parent 7,327 –161 7,166 3,124 2,162 5,286 >100 36 Attributable to non-controlling interests 165 –156 10 26 –33 –7 >100 NA Key Ratios Operating margin (in %) 26.7 28.3 28.2 13.6 23.9 13.1pp 4.5pp 4.3pp Effective tax rate (in %)1 28.5 30.4 33.9 32.3 –5.4pp –1.9pp Earnings per share, basic (in €) 6.28 6.15 2.68 4.53 >100 36 1 The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in 2025 mainly resulted from tax effects of equity securities. The difference between our effective tax rate (IFRS) and effective tax rate (non-IFRS) in 2024 mainly resulted from tax effects of restructuring expenses and equity securities.
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19/28 Quarterly Statement Q4 2025 (E.7) Reconciliation of Free Cash Flow € millions, unless otherwise stated Q1–Q4 2025 Q1–Q4 2024 Net cash flows from operating activities 9,156 5,207 Purchase of intangible assets and property, plant, and equipment –739 –797 Proceeds from sales of intangible assets and property, plant, and equipment 121 122 Payments of lease liabilities –299 –310 Free cash flow 8,239 4,222 Net cash flows from investing activities –965 –93 Net cash flows from financing activities –8,745 –3,961
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20/28 Quarterly Statement Q4 2025 (F) Non-IFRS Adjustments – Actuals and Estimates € millions, unless otherwise stated Estimated Amounts for Full Year 2026 Q4 2025 Q1–Q4 2025 Q4 2024 Q1–Q4 2024 Profit (loss) before tax (IFRS) 2,767 10,482 2,207 4,764 Adjustment for acquisition-related charges 340-420 98 411 100 356 Adjustment for restructuring expenses 0-20 3 3 323 3,144 Adjustment for regulatory compliance matter expenses 0 0 0 –3 –11 Adjustment for the Teradata litigation expenses 0 174 174 0 0 Adjustment for gains and losses from equity securities, net N/A1 –209 –764 –314 –461 Profit (loss) before tax (non-IFRS) 2,833 10,307 2,313 7,792 1 Due to the uncertainty and potential variability of gains and losses from equity securities, we cannot provide an estimate for the full year without unreasonable efforts. This item could however have a material impact on our non-IFRS measures below operating profit. (G) Non-IFRS Operating Expense Adjustments by Functional Areas € millions Q4 2025 Q4 2024 IFRS Acquisition -Related Restruc- turing RCM1 Teradata litigation Non- IFRS IFRS Acquisition- Related Restruc- turing RCM1 Teradata litigation Non-IFRS Cost of cloud –1,504 26 0 0 52 –1,425 –1,279 29 0 0 0 –1,250 Cost of software licenses and support –340 0 0 0 52 –288 –319 0 0 0 0 –319 Cost of services –796 0 0 0 0 –796 –837 0 0 0 0 –837 Research and development –1,698 1 0 0 0 –1,697 –1,675 2 0 0 0 –1,673 Sales and marketing –2,303 69 0 0 0 –2,234 –2,496 67 0 –14 0 –2,443 General and administration –465 2 0 0 70 –393 –378 2 0 11 0 –366 Restructuring –3 0 3 0 0 0 –323 0 323 0 0 0 Other operating income/expense, net –21 0 0 0 0 –21 –54 0 0 0 0 –54 Total operating expenses –7,130 98 3 0 174 –6,855 –7,361 100 323 –3 0 –6,941 1 Regulatory Compliance Matters € millions Q1–Q4 2025 Q1–Q4 2024 IFRS Acquisition -Related Restruc- turing RCM1 Teradata litigation Non- IFRS IFRS Acquisition- Related Restruc- turing RCM1 Teradata litigation Non-IFRS Cost of cloud –5,416 98 0 0 52 –5,266 –4,660 78 0 0 0 –4,582 Cost of software licenses and support –1,249 0 0 0 52 –1,196 –1,262 0 0 0 0 –1,262 Cost of services –3,193 1 0 0 0 –3,192 –3,321 1 0 0 0 –3,321 Research and development –6,633 5 0 0 0 –6,628 –6,514 5 0 0 0 –6,508 Sales and marketing –8,879 299 0 0 0 –8,580 –9,090 255 0 –22 0 –8,856 General and administration –1,548 8 0 0 70 –1,470 –1,435 16 0 11 0 –1,409 Restructuring –3 0 3 0 0 0 –3,144 0 3,144 0 0 0 Other operating income/expense, net –49 0 0 0 0 –49 –85 0 0 0 0 –85 Total operating expenses –26,970 411 3 0 174 –26,382 –29,511 356 3,144 –11 0 –26,022 1 Regulatory Compliance Matters
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21/28 Quarterly Statement Q4 2025 If not presented in a separate line item in our income statement, the restructuring expenses would break down as follows: € millions Q4 2025 Q1–Q4 2025 Q4 2024 Q1–Q4 2024 Cost of cloud 0 1 –1 –95 Cost of software licenses and support 1 5 –6 –85 Cost of services –1 8 –41 –566 Research and development –3 17 –109 –1,197 Sales and marketing –2 –19 –149 –1,043 General and administration 2 –16 –17 –158 Restructuring expenses –3 –3 –323 –3,144
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22/28 Quarterly Statement Q4 2025 Disaggregations (H) Segment Reporting (H.1) Segment Policies and Changes SAP is organized in two operating segments, the Applications, Technology & Support (ATS) segment and the Core Services segment: – The ATS segment represents SAP’s cohesive product portfolio which is holistically steered and commercialized. It primarily generates revenue from cloud subscriptions and from the sale of software licenses and support offerings, and it incurs cost for support, operating our solutions, and the provision of infrastructure. The revenue and cost for services arise for SAP’s training business which is highly integrated with SAP’s product portfolio. – The Core Services segment supports SAP’s product portfolio by enabling customers to transform their business and accelerate the adoption of innovations. Revenues are mainly generated from professional consulting services and premium support services. Cost is incurred primarily for the delivery of those services. The Core Services segment does not reflect the full services business. The segment information for comparative prior periods was restated to conform with the new segment composition. (H.2) Segment Reporting – Quarter Applications, Technology & Support (ATS) € millions (non-IFRS) Q4 2025 Q4 2024 Actual Currency Constant Currency Actual Currency Cloud 5,610 5,923 4,708 Software licenses 452 474 683 Software support 2,557 2,668 2,876 Software licenses and support 3,008 3,141 3,559 Cloud and software 8,618 9,064 8,267 Services 93 96 114 Total segment revenue 8,711 9,160 8,381 Cost of cloud –1,372 –1,465 –1,223 Cost of software licenses and support –285 –301 –306 Cost of cloud and software –1,656 –1,766 –1,529 Cost of services –84 –86 –96 Total cost of revenue –1,740 –1,853 –1,626 Segment gross profit 6,971 7,307 6,755 Other segment expenses –3,438 –3,611 –3,483 Segment profit (loss) 3,532 3,696 3,272 Core Services € millions (non-IFRS) Q4 2025 Q4 2024 Actual Currency Constant Currency Actual Currency Services 973 1,019 996 Total segment revenue 973 1,019 996 Cost of cloud –34 –35 –32 Cost of software licenses and support –10 –10 –13 Cost of cloud and software –44 –45 –45 Cost of services –704 –736 –743 Total cost of revenue –747 –781 –788 Segment gross profit 226 238 209 Other segment expenses –160 –167 –177 Segment profit (loss) 66 71 32
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23/28 Quarterly Statement Q4 2025 (H.3) Segment Reporting – Year-to-Date Applications, Technology & Support € millions (non-IFRS) Q1–Q4 2025 Q1–Q4 2024 Actual Currency Constant Currency Actual Currency Cloud 21,023 21,661 17,141 Software licenses 990 1,020 1,399 Software support 10,525 10,754 11,290 Software licenses and support 11,515 11,774 12,689 Cloud and software 32,538 33,435 29,829 Services 309 316 418 Total segment revenue 32,847 33,751 30,248 Cost of cloud –5,084 –5,276 –4,446 Cost of software licenses and support –1,109 –1,143 –1,169 Cost of cloud and software –6,193 –6,419 –5,615 Cost of services –349 –357 –385 Total cost of revenue –6,542 –6,775 –6,000 Segment gross profit 26,305 26,976 24,248 Other segment expenses –12,959 –13,328 –12,995 Segment profit (loss) 13,345 13,647 11,253 Core Services € millions (non-IFRS) Q1–Q4 2025 Q1–Q4 2024 Actual Currency Constant Currency Actual Currency Services 3,953 4,053 3,927 Total segment revenue 3,953 4,053 3,927 Cost of cloud –120 –124 –108 Cost of software licenses and support –39 –40 –49 Cost of cloud and software –159 –164 –158 Cost of services –2,773 –2,843 –2,850 Total cost of revenue –2,932 –3,007 –3,008 Segment gross profit 1,021 1,046 920 Other segment expenses –590 –605 –637 Segment profit (loss) 432 440 283
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24/28 Quarterly Statement Q4 2025 (I) Revenue by Region (IFRS and Non-IFRS) (I.1) Revenue by Region (IFRS and Non-IFRS) – Quarter € millions Q4 2025 Q4 2024 ∆ in % Actual currency Currency Impact Constant Currency Actual currency Actual currency Constant Currency Cloud Revenue by Region EMEA 2,410 41 2,451 1,920 26 28 Americas 2,383 192 2,574 2,121 12 21 APJ 817 80 897 667 23 34 Cloud revenue 5,610 313 5,923 4,708 19 26 Cloud and Software Revenue by Region EMEA 4,055 52 4,107 3,840 6 7 Americas 3,327 273 3,600 3,230 3 11 APJ 1,236 120 1,357 1,197 3 13 Cloud and software revenue 8,618 446 9,064 8,267 4 10 Total Revenue by Region Germany 1,582 2 1,583 1,557 2 2 Rest of EMEA 3,007 57 3,064 2,838 6 8 Total EMEA 4,589 58 4,647 4,395 4 6 United States 2,934 257 3,191 2,947 0 8 Rest of Americas 801 48 849 714 12 19 Total Americas 3,734 305 4,040 3,662 2 10 Japan 393 39 432 370 6 17 Rest of APJ 968 92 1,061 950 2 12 Total APJ 1,361 132 1,493 1,320 3 13 Total revenue 9,684 495 10,179 9,377 3 9
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25/28 Quarterly Statement Q4 2025 (I.2) Revenue by Region (IFRS and Non-IFRS) – Year-to-Date € millions Q1–Q4 2025 Q1–Q4 2024 ∆ in % Actual Currency Currency Impact Constant Currency Actual Currency Actual Currency Constant Currency Cloud Revenue by Region EMEA 8,876 62 8,938 6,892 29 30 Americas 9,075 422 9,497 7,872 15 21 APJ 3,072 153 3,226 2,377 29 36 Cloud revenue 21,023 637 21,661 17,141 23 26 Cloud and Software Revenue by Region EMEA 15,013 75 15,089 13,534 11 11 Americas 12,744 592 13,336 11,987 6 11 APJ 4,781 229 5,011 4,308 11 16 Cloud and software revenue 32,538 897 33,435 29,830 9 12 Total Revenue by Region Germany 5,828 1 5,829 5,359 9 9 Rest of EMEA 11,197 83 11,280 10,216 10 10 Total EMEA 17,025 83 17,109 15,575 9 10 United States 11,537 486 12,023 11,056 4 9 Rest of Americas 2,962 182 3,145 2,752 8 14 Total Americas 14,499 669 15,167 13,808 5 10 Japan 1,569 50 1,619 1,388 13 17 Rest of APJ 3,707 202 3,909 3,404 9 15 Total APJ 5,276 252 5,528 4,793 10 15 Total revenue 36,800 1,004 37,804 34,176 8 11
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26/28 Quarterly Statement Q4 2025 (J) Employees by Region and Functional Areas Full-time equivalents 12/31/2025 12/31/2024 EMEA Americas APJ Total EMEA Americas APJ Total Cloud and software 4,665 4,511 5,381 14,557 4,543 4,339 4,764 13,646 Services 8,331 4,546 5,813 18,691 8,485 4,719 5,566 18,770 Research and development 18,589 5,845 13,531 37,965 18,819 5,677 13,094 37,590 Sales and marketing 12,031 9,829 4,963 26,823 12,042 9,801 5,139 26,983 General and administration 4,057 1,924 1,356 7,337 3,836 1,836 1,300 6,971 Infrastructure 3,164 1,104 1,008 5,277 3,076 1,164 921 5,161 SAP Group (12/31) 50,837 27,759 32,052 110,650 50,801 27,536 30,784 109,121 Thereof acquisitions1 288 74 13 375 413 414 86 912 SAP Group (twelve months' end average) 49,685 27,823 31,703 109,211 49,764 27,394 29,997 107,155 1 Acquisitions closed between January 1 and December 31 of the respective year.
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27/28 Quarterly Statement Q4 2025 Other Disclosures (K) Share-Based Payment SAP’s share-based payment expenses included in SAPs non-IFRS operating expenses break down as follows: € millions Q4 2025 Q1–Q4 2025 Q4 2024 Q1–Q4 2024 Cost of cloud –21 –107 –34 –138 Cost of software licenses and support –6 –30 –11 –42 Cost of services –46 –244 –91 –360 Research and development –119 –600 –180 –751 Sales and marketing –101 –579 –200 –876 General and administration –23 –135 –54 –217 Share-based payment expenses –316 –1,695 –570 –2,385 The decrease in share-based payment expenses is mainly due to a reduction in the SAP share price of more than €25 in 2025, as compared to an increase in 2024 of more than €95, as well as lower grant volumes as compared to prior years. For more information about share-based payment expenses, see the Notes to the Consolidated Half-Year Financial Statements, Note (B.3). In the fourth quarter and in the full year 2025, the amount of accelerated share-based payment expenses triggered by the transformation program was not material. In 2024, SAP recognized accelerated share-based payment expenses amounting to €138 million in the fourth quarter, and €309 million in the full year. These share-based payment expenses are classified as restructuring expenses in SAP’s consolidated income statements. Associated share-based payments in the full year 2025 amounted to €165 million (Q1-Q4/2024: €171 million) and are classified as a decrease in provisions and other liabilities in SAP’s consolidated statements of cash flows. (L) Business Combinations On August 1, 2025, SAP announced its intention to acquire 100% of SmartRecruiters, Inc. (“SmartRecruiters”), a leading talent acquisition software provider. The transaction closed on September 11, 2025, following satisfaction of regulatory and other approvals. The acquisition will strengthen the SAP SuccessFactors Human Capital Management (HCM) suite. SmartRecruiter’s products improve employee hiring decision-making and reduce time to hire. Embedded analytics and AI-powered recommendations from SAP and SmartRecruiters will provide valuable insights into talent pools, avoid hiring bottlenecks, and improve workforce planning. The preliminary consideration transferred amounted to €753 million. In the fourth quarter of 2025, the contribution of SmartRecruiters to revenue was approximately €20 million, to operating profit (IFRS) approximately €-11 million and operating profit (non-IFRS) approximately €-6 million (non-IFRS). For the full year 2025 the contribution of SmartRecruiters was approximately €26 million to revenue, approximately €-17 million to operating profit (IFRS) and approximately €-10 million to operating profit (non-IFRS). (M) Tax-related Litigation Due to a recent change in case law, SAP´s other tax litigation was affected for prior years. This resulted in an increase of other taxes by €98 million negatively affecting SAP’s operating profit and a compensating benefit in SAP’s income tax expense in the third quarter of 2025. As payments were made over the years, the impact on cash flows from operating activities 2025 is immaterial. The other tax litigation was disclosed among the contingent liabilities in the Notes to the Consolidated Half-Year Financial Statements, Note (G.1). (N) Teradata Litigation Matter The Teradata litigation claims have been pending in the U.S. federal court since 2018 when Teradata Corporation, Teradata US, Inc. and Teradata Operations, Inc. (collectively “Teradata“) filed a civil lawsuit against SAP SE, SAP America, Inc. and SAP Labs, LLC. Teradata alleges trade secret misappropriation and U.S. antitrust violations concerning the development and commercialization of the SAP HANA database. While SAP initially secured a dismissal of these claims in 2021, a 2024 appellate ruling reinstated the case, and the U.S. Supreme Court declined to review the matter in October 2025. SAP will continue to defend itself vigorously at the jury trial scheduled for March-April 2026. SAP engaged in a court ordered mediation at the end of January 2026 and as a result thereof,
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28/28 Quarterly Statement Q4 2025 we have recorded a provision of €174 million as of December 31, 2025 (FY 2024: €0 million) related to our offer to Teradata to fully settle these claims, which to date reflects our best estimate to resolve the litigation. For more information about the T eradata litigation, see the Notes to the Consolidated Half-Year Financial Statements, Note (G.1). (O) Changes to Our Financial Key Measures Effective 2025, numbers that are identified as operating profit (non-IFRS) will be adjusted by excluding expenses related to the Teradata litigation matter. This adjustment includes legal fees and expenses from settlements, or damages awarded in court, and are strictly limited to the scope of IAS 37. The adjustments to SAP’s non-IFRS definitions will also impact our profit before tax (non-IFRS), profit after tax (non-IFRS), and our non-IFRS key ratios such as operating margin, effective tax rate, and earnings per share, basic. For more details such as the explanation, the usefulness, and the limitations of non-IFRS measures, please refer to the SAP Performance Measures. For more information about the T eradata litigation matter, see Note (N) in this quarterly statement, and the Notes to the Consolidated Half-Year Financial Statements, Note (G.1). (P) Changes to Our Non-Financial Key Measures The following changes will be effective as of 2026. (P.1) Gross Greenhouse Gas Emissions Starting 2026, SAP intend to revise the methodology we use to calculate Scope 3 GHG emissions. We will replace our current methodology for calculating category 11 emissions from the use of sold products, which is based on the total amount of active maintenance contracts, with a forward-looking approach that considers the estimated emissions during the lifetime of all new systems sold within a specific period. This change aligns our approach more closely with the GHG Protocol. The revised calculation methodology will result in a significant decrease in reported emissions and therefore lead to a re-baselining in accordance with the GHG Protocol. Had this methodology been applied in the reporting year, our 2025 GHG emissions would have been 3,549 kilotons. (P.2) Customer Net Promoter Score Starting 2026, we are revising our customer experience KPI framework by switching from Customer NPS (Net Promoter Score) to Cloud Customer Satisfaction (Cloud CSAT). The CSAT metric is calculated as a “top 2-box” score, taking the percentage of customers who are “very satisfied” or “satisfied” with SAP, as indicated on a 5-point scale, that provides response options from “very satisfied” to “very dissatisfied”. Consequently, the range of achievable scores is between 0 and 100, with the latter being the best achievable score for customer satisfaction as measured by the Cloud CSAT methodology. The Cloud CSAT KPI is calculated based on feedback from our cloud customers, in alignment with SAP’s cloud-first strategy. The Cloud CSAT score for 2025 was 75%. A cloud customer is a customer giving feedback either (1) explicitly about one of the cloud solutions that they have implemented and are operationally running, or (2) giving feedback about “SAP in general” while having implemented and operationally running either exclusively one or more cloud solution(s) or has a mixed portfolio that does not include certain pre-defined solutions confirmed to be running as on-premise. If a customer runs any of the pre-defined, confirmed to be running as on-premise solutions (ERP On-Prem, HANA On-Prem, S/4HANA On-prem, HCM On-Prem, SAP Business Objects, SAP Business Warehouse), they are treated as an on-premise customer and their rating score is not considered in the Cloud CSAT calculation. The revenue generated with cloud solutions in any mixed portfolio counts towards cloud revenue reported in our financial information.