Key Takeaway
SAP’s revenue increased to €9.08 billion, driven by strong cloud performance. Operating profit rose 12% to €2.49 billion (IFRS) and 14% to €2.57 billion (non-IFRS), despite facing €0.2 billion in costs from tax litigation and workforce changes. This growth suggests effective cost control and the scalability of their cloud business. CFO Dominik Asam emphasized the company’s agility and disciplined execution, maintaining momentum amid economic uncertainty. He expressed confidence in meeting commitments, with an improved outlook for operating profit and free cash flow entering Q4.
Cloud Strategy and Financial Performance
SAP’s total revenue has risen to €9.08bn, supported by consistent cloud performance.
Profitability has also improved. IFRS operating profit increased by 12% to €2.49bn, while non-IFRS operating profit grew by 14% to €2.57bn.
These results were achieved despite challenges amounting to approximately €0.2bn from tax litigation and workforce transformation costs.
The rise in profit margins may indicate effective cost management and the scalable nature of the cloud business.
Dominik Asam, SAP’s Chief Finance Officer, comments on SAP’s performance: “Q3’s strong results underscore the robustness and agility of our model. Through disciplined execution and a keen focus on profitability and cash flow, we’ve sustained our momentum despite an uncertain macroeconomic environment.”
He further states: “We enter Q4 with confidence in our ability to fulfill our commitments, as evidenced by an improved outlook for operating profit and free cash flow.”
