SAP Reports Mixed Q2 Results With Revenue Miss, Cloud Growth Slows

SAP SE reported mixed second-quarter 2025 financial results, with revenue and earnings slightly missing or just exceeding analyst expectations, leading to a decline in its stock price after-hours. The company posted revenue of €9.03 billion, a 12% increase year-over-year but short of the €9.09 billion target, while adjusted earnings per share of €1.50 surpassed estimates. Cloud revenue grew 24% to €5.13 billion, slightly below forecasts and showing a deceleration from previous growth rates, though SAP maintained its full-year cloud revenue guidance between €21.6 billion and €21.9 billion. CEO Christian Klein highlighted the expanding availability of SAP’s AI assistant Joule and the company’s strong position to benefit from evolving enterprise operations. Despite a 25% gain in SAP shares for 2025 so far, investors expressed concern over the miss on cloud revenue and the impact of tariff and currency pressures on Europe’s largest software company’s growth. Overall, SAP's current cloud backlog, a key indicator of future revenue, rose 28% to €18.05 billion, slightly exceeding expectations, signaling ongoing demand despite recent challenges.