SAP Cloud Revenue Growth Ticks Down, Could Meet Lower End Of 2025 Guidance Despite Macro Uncertainty

SAP SE (NYSE:SAP) expects cloud revenue for 2025 to range between 21.6 billion to 21.9 billion euros ($25.2 billion – $25.5 billion), according to the software company’s latest report.

The forecast coincides with mixed third-quarter results. Here are the latest analyst takeaways:

• Citizens JMP Securities analyst Patrick Walravens maintained a Market Outperform rating and a $375 price target.
• Piper Sandler analyst Hannah Rudoff reiterated an Overweight rating and a $300 price target.

Check out other analyst stock ratings.

Citizens JMP Securities: SAP reported earnings of 1.59 euros ($1.85) per share, topping consensus of 1.49 euros per share. Total revenue of 9.08 billion euros is in line with expectations, Walravens said in a note.

Revenue grew by 11% year-on-year in constant currency, decelerating from 12% in the previous quarter, he added.

While maintaining its 2025 guidance, SAP raised free cash flow projections to 8.2 billion euros, from its prior outlook of 8 billion euros, the analyst stated.

"While SAP’s outlook for full-year cloud revenue has shifted toward the lower end of guidance due to delayed customer bookings in the first half and ongoing softness in its transactional cloud business, we continue to view the stock as an opportunity for long-term capital appreciation," Walravens wrote.

Piper Sandler: SAP reported solid quarterly results, underpinned by current cloud backlog (CCB) growth of 27%, Rudoff said. The company's bookings performance was in-line with management’s targets, "driven by improvement in deal slippage attributable in part to improvement in U.S. public sector activity," she added.

SAP's operating margin remained stable at 28.3%, despite restructuring and case law changes. The “desire” to adopt Business AI and BDC solutions is driving customers to embark on their RISE journeys, Rudoff added. This results in the “pull forward of deals into Q4 from 2026," she further wrote.

SAP Price Action: Shares of SAP had declined by 0.05% to $276.20 at the time of publication on Thursday.

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