Key Takeaway
SAP’s revenue rose to €9.08 billion, driven by strong cloud performance, while profitability improved with IFRS operating profit increasing by 12% to €2.49 billion and non-IFRS profit up 14% to €2.57 billion. This growth occurred despite challenges from tax litigation and workforce transformation costs totaling around €0.2 billion. CFO Dominik Asam attributed the results to effective cost control and the scalable nature of the cloud business, emphasizing the company’s agility and focus on profitability. As SAP enters Q4, there is confidence in meeting commitments, reflected in an improved outlook for operating profit and free cash flow.
Cloud Strategy and Financial Performance
SAP’s total revenue increases to €9.08bn, supported by consistent cloud performance.
Profitability also improves, with IFRS operating profit rising by 12% to €2.49bn and non-IFRS operating profit climbing 14% to €2.57bn.
These results are achieved despite challenges amounting to approximately €0.2bn from tax litigation and workforce transformation expenses.
The increase in profit margins may indicate effective cost management and the scalable nature of the cloud business.
Dominik Asam, SAP’s Chief Finance Officer, comments on SAP’s performance: “Q3’s strong results underscore the resilience and agility of our model. Through disciplined execution and a keen focus on profitability and cash flow, we’ve sustained forward momentum despite an uncertain macroeconomic environment.”
He adds: “As we enter Q4, we are confident in our ability to fulfill our commitments, as evidenced by an improved outlook for operating profit and free cash flow.”
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