Particle.news
Download on the App Store

SAP Lowers Cloud Outlook to Low End After Q3 Revenue Miss

A larger cloud backlog with higher operating profit bolsters management confidence despite slower growth.

Overview

  • Third‑quarter revenue rose 7% to €9.08 billion, missing the €9.17 billion consensus, according to LSEG IBES.
  • Cloud revenue grew 22% year over year, marking the slowest pace since the fourth quarter of 2023.
  • SAP now expects 2025 cloud revenue at the lower end of its €21.6–€21.9 billion range, with operating profit toward the upper end.
  • Current cloud backlog reached $21.8 billion, up 23% year over year and 27% at constant currencies, signaling future subscription conversion.
  • Shares fell about 2–3% in U.S. after-hours trading and turned lower in Europe, as some analysts, including JPMorgan, pointed to backlog strength despite growth concerns.