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SAP AG ( (SAP) ) has provided an update.
On January 29, 2026, SAP SE reported its fourth-quarter and full-year 2025 results, highlighting a strong acceleration in its cloud business and a marked improvement in profitability. For 2025, cloud revenue rose 23% year-on-year to €21.0 billion (26% at constant currencies), driven by a 28% increase in Cloud ERP Suite revenue to €18.1 billion and contributing to a 9% rise in cloud and software revenue and an 8% increase in total revenue to €36.8 billion. IFRS operating profit more than doubled, up 111% to €9.83 billion, while non-IFRS operating profit climbed 28% (31% at constant currencies), supported by robust cost discipline and nearly doubled free cash flow of €8.24 billion. In the fourth quarter of 2025, SAP’s total cloud backlog expanded 22% (30% at constant currencies) to a record €77 billion, with current cloud backlog up 16% (25% at constant currencies), underscoring strong demand for its cloud portfolio and SAP Business AI, which management cited as a key growth driver embedded in most new cloud orders. SAP also announced a new two-year share repurchase program of up to €10 billion, signaling confidence in its long-term cash generation and reinforcing its shareholder-return strategy as it strengthens its competitive position in the global SaaS and PaaS markets.
The most recent analyst rating on (SAP) stock is a Buy with a $223.00 price target. To see the full list of analyst forecasts on SAP AG stock, see the SAP Stock Forecast page.
Spark’s Take on SAP Stock
According to Spark, TipRanks’ AI Analyst, SAP is a Neutral.
The score is driven primarily by strong financial quality (high margins, improving profitability, conservative leverage, and solid free-cash-flow conversion) and a supportive earnings outlook (record backlog, margin expansion, and ~€10B 2026 free cash flow target plus a €10B buyback). These positives are meaningfully offset by weak technicals (price far below major moving averages with bearish momentum) and a relatively high P/E that limits valuation support.
To see Spark’s full report on SAP stock, click here.
More about SAP AG
SAP SE is a Germany-based global enterprise software company that provides cloud-based and on-premise applications, with a core focus on ERP (enterprise resource planning), database and analytics, and business process management solutions. Its portfolio increasingly centers on SaaS and PaaS offerings, including the Cloud ERP Suite and Business Technology Platform, targeting large-scale digital transformation projects for enterprises worldwide.
Average Trading Volume: 1,860,285
Technical Sentiment Signal: Hold
Current Market Cap: $229.4B
Learn more about SAP stock on TipRanks’ Stock Analysis page.