SAP Posts Strong Q3, Raises Profit Guidance

SAP reported strong Q3 2025 results, with non‑IFRS EPS of €1.59 (about +29%) and total non‑IFRS revenue of €9.08 billion, up 7% year‑over‑year (11% at constant currency). Cloud revenue was €5.29 billion, up 22% Y/Y (≈27% cc), and the Cloud ERP Suite showed robust growth. Management said the current cloud backlog rose in the mid‑20% range to roughly €18.8 billion (about $21.9 billion) and that predictable/subscription revenue now represents about 87% of revenue, bolstering recurring sales. Management guided full‑year operating profit toward the top/high end of its prior range and raised its free‑cash‑flow target, with the CFO stressing visibility from contractually committed backlog despite elongated sales cycles and macro uncertainty. Investors largely shrugged off a slight cloud‑revenue miss, though some analysts remained cautious (Oppenheimer kept a Perform rating).