German software giant SAP SE ADS (NYSE:SAP) stock tumbled Thursday after the company reported mixed fourth-quarter fiscal 2025 results.
Revenue rose 3% Y/Y (+9% Y/Y in constant currencies) to 9.68 billion euros, while non-IFRS EPS increased 16% Y/Y to 1.62 euros.
In USD, SAP reported quarterly earnings of $1.89 per share, which beat the analyst estimate of $1.76 and revenue of $11.27 billion, which missed the Street estimate of $11.46 billion.
IFRS operating profit grew 27% Y/Y, non-IFRS operating profit up 16% Y/Y, and up 21% Y/Y at constant currencies.
Operating cash flow stood at 1.30 billion euros, and free cash flow came in at 1.03 billion euros in the quarter.
Segment Performance
The current cloud backlog stood at 21.05 billion euros, up 16% Y/Y and up 25% Y/Y in constant currencies, led by major transformational contracts, featuring significant cloud revenue growth in later years and legally mandated termination-for-convenience clauses.
“Large transformational deals with high cloud revenue ramps in outer years and termination for convenience clauses required by law negatively impacted fourth quarter constant currency current cloud backlog growth by approximately 1 percentage point,” the company said.
In the earnings call, SAP CFO Dominik Asam said the current cloud backlog rose 25%, but acknowledged the pace represents a sharper-than-expected slowdown versus …