SAP Q2 Revenue Up 12%, Cloud Business Rises 28% Amid Tariff Uncertainty

SAP shares declined 4% after CEO Christian Klein said some clients in the US public administration and tariff-exposed industries in manufacturing were cautious about spending on cloud services due to President Trump's tariffs. Despite this, SAP reported higher revenue and operating profit for Q2, with total revenue up 12% and cloud revenue up 28%. The company maintained its full-year guidance, expecting non-IFRS operating profit between 10.3 and 10.6 billion euros and cloud revenue between 21.6 and 21.9 billion euros.

SAP SE (NYSE: SAP) announced its financial results for the second quarter (Q2) 2025, showing robust growth in revenue and operating profit despite some cautious spending from US clients in public administration and tariff-exposed industries. The company reported total revenue up 12% to €9.03 billion, with cloud revenue up 28% to €5.13 billion. Despite the challenges, SAP maintained its full-year guidance, expecting non-IFRS operating profit between €10.3 billion and €10.6 billion and cloud revenue between €21.6 billion and €21.9 billion [1].

Christian Klein, CEO of SAP, highlighted the strong performance, attributing it to AI innovations such as Joule and SAP Business Data Cloud, which are now available "everywhere and for everything." The company also noted that enterprise operations are entering a new era, positioning SAP to benefit from this evolution [1].

Dominik Asam, CFO of SAP, emphasized the company's disciplined cost control and strong profitability, with IFRS operating profit increasing to €2.46 billion and non-IFRS operating profit up 32% to €2.57 billion. Free cash flow increased by 83% to €2.36 billion, driven by higher profitability and positive working capital developments [1].

The company's share repurchase program, initiated in May 2023, has seen SAP repurchase 24.7 million shares at an average price of €185.51, totaling approximately €4.6 billion as of June 30, 2025 [1].

Despite the positive financial performance, SAP shares declined 4% following the announcement, reflecting concerns about cautious spending from US clients due to President Trump's tariffs. The company remains cautiously optimistic, keeping an eye on geopolitical developments and public sector trends as it moves into the second half of the year [1].

References:
[1] https://www.prnewswire.com/news-releases/sap-quarterly-statement-q2-2025-302511209.html