Integrated Report 2025

About This Report

Content

The SAP Integrated Report 2025 presents our annual financial, environmental, social, and governance performance in a single integrated report (“SAP Integrated Report”) available at www.sapintegratedreport.com.

On the Integrated Report homepage, we also embedded the recommended disclosures of the Task Force on Climate-Related Financial Disclosures (TCFD).

Basis of Presentation

Our Combined Management Report is prepared in accordance with the German Commercial Code and the relevant German Accounting Standards. The Combined Management Report is also a management commentary complying with the International Financial Reporting Standards (IFRS) Practice Statement Management Commentary.

The report encompasses SAP SE and all subsidiaries which we control and, hence, include in our Consolidated Financial Statement according to IFRS. Joint arrangements and associates are not included in the sustainability reporting. Any further deviations for the sustainability reporting are specifically mentioned in the respective chapters. Our executive management has confirmed the effectiveness of our internal controls over financial reporting.

The social, environmental and governance data and information included in the Group Sustainability Statement of SAP Integrated Report is prepared in accordance with the European Sustainability Reporting Standards (ESRS), which require a report to provide a comprehensive picture of its material impacts, risks and opportunities and how these are managed.

Greenhouse gas data is prepared based on the Greenhouse Gas Protocol.

Data

All financial and non-financial data and information for the reporting period is reported utilizing SAP software solutions and sourced from the responsible business units.

The reporting period is fiscal year 2025. The report encompasses SAP SE and all subsidiaries of the SAP Group. To make this report as current as possible, we have included relevant information available up to the auditor’s opinion dated February 18, 2026. The report is available in English and German.

Independent Audit and Assurance

BDO AG Wirtschaftsprüfungsgesellschaft (BDO) has audited our Consolidated Financial Statements and our Combined Management Report. Information relating to the Group Sustainability Statement included in SAP’s Management Report an independent assurance engagement with limited assurance by BDO. Additionally, BDO has provided reasonable assurance on selected sustainability information in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised), a pertinent standard for the assurance of sustainability reporting. The Independent Auditor’s Report and the Assurance Reports of BDO for the Group Sustainability statement and selected sustainability information are available in the Independent Auditor’s Report section and in the Assurance Report of the Independent German Public Auditor on an Assurance Engagement to Obtain Limited and Reasonable Assurance in Relation to the Group Sustainability Statement section.

Concept and Realization

This report was designed by SAP and created with SAP S/4HANA software and the SAP Disclosure Management application.

		Integrated Report 2025

Contents

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

To Our Stakeholders

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

Letter from the CEO

Dear Fellow Shareholders,

2025 was an inflection point. In a rapidly transforming world, Business AI graduated from a possibility to an absolute necessity. With this shift, the application of AI in and across enterprises has become a central theme in our customers' strategies and, in turn, played a key role in all our stakeholder interactions - from our customers to our partners and our over 100,000 employees worldwide.

In this new reality, Business AI has become a critical tool for building resilience – financially, operationally, and in the transition to a more resource-efficient economy. By unleashing the full potential of Business AI, SAP is helping our customers navigate uncertainty and reimagine their mission-critical processes to reduce risk, build agile and resilient supply chains, and pursue sustainable growth.

This commitment to our customers' success is the engine of our growth, and our results for fiscal year 2025 clearly show that our strategy is working. Despite demanding global macroeconomic conditions, we not only achieved our revised 2025 financial outlook for Cloud Revenue as well as Cloud and Software Revenue. We also beat our Operating Profit and Free Cash Flow outlook in 2025. Looking back to our 2025 financial ambition set in 2020 – which we adapted over time to reflect evolving market conditions – we successfully delivered on our commitment.

Our Total Cloud Backlog grew by 30%¹ to €77 billion in 2025, demonstrating impressive growth on an already large base. Throughout 2025, the Current Cloud Backlog consistently reached growth rates of around 25%¹ or more year-on-year. Total Revenue grew by 11%¹ and accelerated compared to the previous year. Thanks to our focus on efficiency, including internal AI adoption, Operating Profit increased by 31%². We achieved a Free Cash Flow of €8.2 billion, nearly doubling year-on-year and demonstrating SAP’s financial strength.

Our performance in 2025 is the direct result of our holistic transformation. Facing an environment dominated by disruption, customers choose RISE with SAP for their cloud journey before broadening their footprint across our portfolio, proving the success of our “land and expand” model.

¹ at constant currencies

² Non-IFRS, at constant currencies

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

With our non-financial metrics, we fell below our target for our Customer Net Promoter Score (NPS). In contrast, our Employee Engagement Index rose 2 percentage points to 76%, and our carbon emissions continued to decline. In 2025, we also replaced the key metric “Women in Executive Roles” with the Business Health Culture Index. This index provides a more holistic view of our company culture. The score for this index was 81%, within our target range.

While our business delivered strong results, our share price performance reflected wider market volatility, declining 13% in 2025. Our focus, however, remains firmly on the long-term value that we are creating through our clear strategy and leadership in Business AI.

To that end, and to reinforce our commitment to shareholder returns, we are pleased to propose a 6.4% dividend increase compared to the previous year, to €2.50 per share. Additionally, we are initiating a new €10 billion share buyback program over the next two years.

Our AI momentum is built on concrete innovation. In 2025, we unveiled SAP Business Data Cloud, enabling companies to harmonize and govern both SAP and non-SAP data to create a powerful, trusted foundation for AI. We built a robust, open business data ecosystem in collaboration with new and existing partners that delivered flexibility and choice to our customers.

As we continued to fundamentally change how work gets done with our AI copilot Joule and its agents, we also addressed one of the key challenges companies experience when applying large language models in a business context. The fact that most business data is numeric means that enterprises need AI models that understand more than just words. With SAP RPT-1, we built a new kind of AI model that does exactly that, using this data to make high-quality predictions from just a small set of examples.

Responding to the shifting geopolitical landscape, we also further strengthened our commitment to digital sovereignty, data security and control. In Europe, we launched the continent's first comprehensive sovereign AI offering, providing customers with an end-to-end AI solution that enables them to operate under European governance frameworks, keep sensitive data within approved jurisdictions, and retain full oversight and decision rights.

Looking ahead to 2026, our confidence stems from the strong foundation we established in 2025. Based on a pipeline fueled by Business AI and SAP Business Data Cloud, we expect to maintain robust Cloud Revenue in a range between €25.8 billion to €26.2 billion. Importantly, we also continue to expect an acceleration of Total Revenue Growth not only in 2026 but through 2027, demonstrating the long-term momentum of our strategy.

Business AI and SAP Business Data Cloud will be key drivers of our growth. Our refreshed strategy for 2026 focuses on five strategic pillars that will create a major opportunity and fundamentally change how enterprises run.

Our path to accelerated, profitable growth is clear. It begins with leading by example, making our own company more productive through the consistent use of Business AI across all functions. This allows us to grow our revenue faster than our costs and, in turn, reinvest in the areas that define our future. Our discipline extends to how we engage with the market, where we are streamlining processes and expanding our highly profitable partner channel to drive sustainable growth.

Ultimately, our success story is not just about technology; it is powered by our people. That is why we are further strengthening our growth culture, attracting world-class talent, and continuously upskilling our entire organization for the AI era. By ensuring our team has both the skills and the tools to innovate, we empower them to deliver the extraordinary outcomes our customers expect.

We have the strategy, the technology, and the team to lead in the era of Business AI. We continue to set the bar higher because in this new era, our ability to help enterprises grow and thrive has never been more important.

On behalf of the entire Executive Board, I extend my deepest gratitude to our dedicated teams, our customers and partners, and to you, our shareholders, for the trust you place in SAP.

Sincerely,

Christian Klein

CEO, SAP SE

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

SAP Executive Board

	Christian Klein Chief Executive Officer (CEO) Joined SAP: 1999 Appointed to the Executive Board: 2018 Current Executive Board term expires: 2030 Nationality: German Year of Birth: 1980 Other board memberships: Supervisory Board, adidas AG, Herzogenaurach, Germany (publicly listed)
	Learn more about Christian Klein

	Dominik Asam Chief Financial Officer Joined SAP: 2023 Appointed to the Executive Board: 2023 Current Executive Board term expires: 2028 Nationality: German Year of Birth: 1969 Other board memberships: Supervisory Board, Bertelsmann Management SE and Bertelsmann SE & Co. KGaA, Gütersloh, Germany (not publicly listed)
	Learn more about Dominik Asam

	Muhammad Alam SAP Product & Engineering Joined SAP: 2022 Appointed to the Executive Board: 2024 Current Executive Board term expires: 2027 Nationality: U.S. Citizen Year of Birth: 1977
	Learn more about Muhammad Alam

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

	Thomas Saueressig Customer Services & Delivery Joined SAP: 2004 Appointed to the Executive Board: 2019 Current Executive Board term expires: 2028 Nationality: German Year of Birth: 1985 Other board memberships: Board of Directors, Nokia Corporation, Espoo, Finland (publicly listed)
	Learn more about Thomas Saueressig

	Sebastian Steinhaeuser Chief Operating Officer Joined SAP: 2020 Appointed to the Executive Board: 2025 Current Executive Board term expires: 2028 Nationality: German Year of Birth: 1985
	Learn more about Sebastian Steinhaeuser

	Gina Vargiu-Breuer Chief People Officer, Labor Director Joined SAP: 2024 Appointed to the Executive Board: 2024 Current Executive Board term expires: 2027 Nationality: German Year of Birth: 1975
	Learn more about Gina Vargiu-Breuer

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

Investor Relations

SAP Share Performance amid Market Volatility

In 2025, SAP’s capital market communication took place in an environment shaped by macroeconomic and geopolitical uncertainty, as well as sector rotation within technology, which influenced market sentiment.

At the beginning of 2025, SAP stock outperformed the DAX and NASDAQ-100, supported by strong top-line momentum, backlog visibility, and solid operational execution, with SAP shares reaching €280.30, their high for the year, on February 13, 2025. However, as the year unfolded, sector rotation toward other technology segments, predominantly infrastructure-focused companies, compounded pressure on SAP stock. The SAP share price reached its annual low of €204.85 on November 25, 2025. By year end, SAP stock had declined approximately 13% from its January starting point, while the DAX and NASDAQ-100 posted gains of 22% and 21%, respectively. This trend reflected a combination of broader market dynamics as well as some Company-specific performance.

Overall, from an investor perspective, market sentiment toward SAP was cautious but constructive compared to its peer group. While near-term share price movements were impacted by sector rotation and macro volatility, investors continued to recognize SAP’s long-term strategic positioning, its disciplined execution, and long-term growth potential.

SAP Stock Versus Major Indexes (January 2, 2025, to December 30, 2025)

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

Continuous Engagement with the Investment Community

Throughout the year, SAP maintained an active, transparent, and consistent dialogue with the capital markets. Members of the Executive Board and the Investor Relations (IR) team engaged with institutional investors, financial analysts, and retail shareholders across a broad geographic footprint to discuss SAP’s strategy, operational execution, financial performance, and long-term value creation. The IR team, together with senior management, continued to strengthen its engagement with the capital markets, connecting with current and potential investors. In total, we participated in approximately 40 global conferences and roadshows.

In May, we hosted the Financial Analyst Conference as part of the SAP Sapphire event in Orlando, Florida, United States, which attracted strong interest from investors and analysts worldwide. Earlier that month, SAP held the Annual General Meeting of Shareholders (AGM) in a virtual format, providing shareholders with the opportunity for direct exchange with the Executive Board and Supervisory Board.

We also continued our engagement on environmental, social, and governance (ESG) topics. SAP provided investors with comprehensive insights into its sustainability strategy, governance framework, and product portfolio. SAP’s performance in this area has been acknowledged by leading sustainability rating agencies. In addition, SAP conducted a corporate governance roadshow together with the Supervisory Board, further strengthening dialogue on governance-related matters.

SAP representatives engaged with retail shareholders at virtual and in-person events. The IR team and the Treasury team also maintained regular communication with the debt investor community.

A comprehensive range of information about SAP and its shares—such as financial disclosures, presentations, webcasts of key events, stock information, and an overview of the latest analyst consensus—is available on the Investor Relations website at www.sap.com/investors. Shareholders can reach the IR team directly by telephone and e-mail at investor@sap.com or via the LinkedIn channel SAP Investor Relations.

Shareholder Structure

Applying the definition accepted on the Frankfurt Stock Exchange, which excludes treasury stock from the free float, the free float as at December 31, 2025, stood at 84.0% (December 31, 2024: 83.8%).

SAP Free Float at 84.0%

Source: Nasdaq, Inc., December 31, 2025

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

Report by the Supervisory Board

Dear Shareholders,

In the following, we would like to inform you about the work of the Supervisory Board in the fiscal year 2025.

Collaboration Between the Supervisory Board and the Executive Board

The Supervisory Board of SAP SE discharged the duties imposed on it by the law and by the Company’s Articles of Incorporation. It advised the Executive Board on an ongoing basis with regard to the running of the Company and it scrutinized and monitored the work of management.

The Supervisory Board received regular, full, and timely reports from the Executive Board, both from members in person and in written documents. The Supervisory Board and its various committees were also in regular exchange with senior internal officers. This ensured that we were always up to date, also between meetings, on the Company’s strategy, planning, business performance, risks, risk management, compliance (in other words, adherence to laws, to the Company’s Articles of Incorporation, and to internal policies), and on transactions of special significance for SAP. In its reports, the Executive Board also informed us in particular where business deviated from plan or target, and why. We questioned and probed the Executive Board’s reports to satisfy ourselves that the information it gave us was plausible. The information we received from the Executive Board met our requirements in full.

The Supervisory Board chairperson and the CEO were in regular contact, such that the Supervisory Board chairperson was always informed without delay about all material events. Moreover, the chairperson of the Supervisory Board and the CEO regularly discussed SAP’s strategy, business performance, risk position, risk management, and compliance.

Transactions that were submitted to us because they required the approval of the Supervisory Board whether by law, under the Articles of Incorporation, or according to the Company’s list of transactions requiring Supervisory Board consent, were approved by us after detailed examination and discussion with the Executive Board.

Dialogue with Investors

The Supervisory Board chairperson and the Lead Independent Director meet regularly with investors to explain SAP’s strategy and key decisions of the Supervisory Board and to obtain the investors’ feedback. The topics discussed are routinely published ahead of the Annual General Meeting in the letter from the chairperson of the Supervisory Board.

In 2025, these discussions primarily focused on SAP’s strategy, artificial intelligence, the terms of the settlement agreement that SAP had reached with the U.S. Department of Justice regarding compliance matters, succession planning for the Executive Board, diversity, Executive Board compensation, and the format of the Annual General Meeting.

Supervisory Board Meetings and Resolutions

In the past fiscal year, the Supervisory Board of SAP SE held four ordinary meetings and one extraordinary meeting at which we deliberated and resolved on the matters of relevance to the Company. Our plenary meetings and committee meetings were held as physical meetings, as video or telephone conferences, or as hybrid meetings, that is, meetings at which most of the members attend in person and the remaining members join online. Outside of these meetings, we adopted a total of 12 resolutions by correspondence vote. The following table provides an overview of the individual members’ attendance at the Supervisory Board’s plenary sessions and committee meetings in the year under review. This report also contains a table that shows in which format the meetings of the Supervisory Board and its committees were held.

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

Meeting Attendance of SAP Supervisory Board Members During Fiscal Year 2025

At their meetings, the Supervisory Board and the committees regularly deliberated on certain agenda items without the Executive Board in attendance, notably when those items pertained to the Executive Board itself, required internal discussion among Supervisory Board members alone, did not require the Executive Board to be present, and to allow for discussion between the Supervisory Board or its respective committee and the auditor without the Executive Board being present. This was the case for the five plenary sessions and for eight committee meetings in 2025. In addition, the shareholder representatives and the employee representatives independently discussed, at times with the CEO, the items on the respective agenda before each regular meeting. Where necessary, such deliberations also took place prior to circular correspondence votes.

The Supervisory Board addressed the following key topics during the year:

Expansion of the Executive Board

The new structure and expansion of the Executive Board was one of the key topics for the Supervisory Board at the beginning of the year. At the extraordinary meeting of the Supervisory Board on January 19, 2025, we discussed in depth the plans to expand the Executive Board. We extended Thomas Saueressig’s Executive Board contract for a further three years until the end of October 2028, and we appointed Sebastian Steinhaeuser to the Executive Board effective February 1, 2025. Since his appointment, Sebastian Steinhaeuser has been responsible for the new Strategy & Operations Board area, which aims to accelerate the implementation of strategic measures and simplify operations. At this meeting, the CEO also outlined the structure of the Extended Board, consisting of nine executives, which likewise took up its work on February 1, 2025. This new leadership body is tasked with advising the Executive Board, coordinating and preparing its decision-making, and representing SAP. Creating the new board allowed the role of chief revenue officer to be shared by two experienced leaders—Jan Gilg for the Americas region and SAP Business Suite, and Emmanuel (Manos) Raptopoulos for the Asia Pacific Japan (APAC) region, the Europe, Middle East, and Africa (EMEA) region, and the Middle and Eastern Europe (MEE) region—who now head Customer Success, the Company’s sales organization. Philipp Herzig was also appointed to the Extended Board as the new chief technology officer. The Supervisory Board endorses the Executive Board’s approach and its appointments to key roles, deeming them a crucial element in executing SAP’s strategy. In this context, the Supervisory Board also approved the necessary amendments to the Executive Board’s rules of procedure and schedule of responsibilities.

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

Artificial Intelligence (AI) and SAP Business Data Cloud

In 2025, the Executive Board and Supervisory Board looked in depth at SAP’s AI strategy and SAP Business Data Cloud, a cloud-based data platform that centrally and securely consolidates enterprise data from multiple sources, manages it, and makes it available for business processes, analytics, and AI applications. Given the significance of cybersecurity in this context, the Audit and Compliance Committee and the Technology and Strategy Committee received comprehensive written status reports on cybersecurity in April and November. At its ordinary meeting in April 2025, the Supervisory Board and the Executive Board discussed the Company’s holistic data strategy, which—by integrating SAP Business Data Cloud, AI technologies (SAP Business AI), SAP applications, and third-party solutions—enables customers to capture, analyze, and manage their business processes end to end. We continued our deliberations on these matters in our meetings on July 31 and November 6, 2025, in which we received the Executive Board’s progress reports on the AI-first, AI application, and go-to-market strategies. In November, the Executive Board reported on the status of SAP’s developments in the area of public cloud, in which the interaction between SAP applications, SAP Business Data Cloud, and SAP’s AI applications also plays a central role. We were also informed about the Company’s project to increase adoption of AI across SAP’s corporate functions. The Product and Technology Committee likewise devoted considerable attention to the topic of AI at all of its meetings.

New Regulatory Framework Under the EU Data Act

The EU Data Act poses significant challenges for many companies, particularly manufacturers of connected products, providers of related services, data holders, and cloud and edge service providers. One of these challenges stems from the requirement that the data from connected products and services be accessible and portable by way of standard, interoperable, and secure interfaces. This entails significant technical modifications and mechanisms to protect trade secrets, intellectual property rights, and personal data. IT companies in particular also face legal uncertainties in connection with customers’ rights to transfer their data, applications, and other digital assets to other service providers (“cloud switching”). At our meeting on July 31, 2025, we took an in-depth look at the new legal obligations under the EU Data Act, which came into force on September 12, 2025, and the Executive Board described how SAP would ensure that it complied with the Act while at the same time safeguarding the Company’s economic interests. When we met on November 6, 2025, the Executive Board gave us a brief update on the Company’s progress on implementing the new EU Data Act. We received an extensive meeting paper that set out in detail how SAP was implementing the new regulations at SAP, provided new insights into dealing with certain aspects of the Act, and described how other affected companies were addressing the new requirements contained in it.

Other key topics addressed at our meetings in 2025 notably included the following:

Meeting in February (Audit Meeting to Discuss the Financial Statements)

At our audit meeting on February 19, 2025, the Executive Board first gave us an account of business in fiscal year 2024 and reported on the material developments and challenges in each of the Board areas. Next, the Supervisory Board discussed the numerous executive orders issued by the new U.S. administration since the beginning of 2025 and their potential implications for SAP. The Executive Board then presented the 2025 finance plan to us, which we approved as recommended by both the Audit and Compliance Committee and the Finance and Investment Committee.

We also deliberated at this meeting on Executive Board compensation and approved the resolutions required under the current compensation system for the Executive Board for the financial years 2024 and 2025. Accordingly, we first determined performance against the defined targets for the short-term incentive (STI) 2024, and for the 2022 tranche of the SAP long-term incentive (LTI) 2020, and the payout for the 2021 tranche. For the Executive Board’s compensation in 2025, we set the performance targets for the STI 2025 and the grant amount for the 2025 tranche of the LTI 2024. As part of this process, we ascertained that, in terms of amount, structure, and objective criteria, the Executive Board members’ compensation for 2025 was reasonable and appropriate, and that it was proportionate to the Company’s financial situation, profit, and outlook. An opinion the Supervisory Board had obtained in advance from an independent outside compensation consultant informed our decision. We also resolved to increase the CEO’s target compensation as proposed by the Personnel and Governance Committee. The increase reflects developments in industry benchmarks, and the effects of this adjustment are presented in the compensation report. For more information about the STI 2024 and 2025, the LTI 2020, the LTI 2024, and the other elements of Executive Board compensation, see the Compensation Report.

The Supervisory Board then turned its attention to the SAP SE financial statements and the consolidated financial statements for 2024. Following the Audit and Compliance Committee’s recommendation, we approved the audit, the financial statements, and the consolidated financial statements for 2024. We endorsed, on the recommendation of the Finance and Investment Committee, the Executive Board’s proposal concerning the appropriation of retained earnings for 2024, and approved the compensation report for fiscal year 2024. Further, we adopted the proposed resolutions for the SAP SE Annual General Meeting of Shareholders on May 13, 2025. One of these proposals was the resolution, to be put to the vote at the Annual General Meeting, on the appointment

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

of BDO AG Wirtschaftsprüfungsgesellschaft (BDO) as auditor for 2025. As a precautionary measure, and following the Audit and Compliance Committee’s recommendation, this resolution included the proposal that BDO’s audit also cover the 2025 Group Sustainability Statement. Lastly, the chairpersons of the respective committees reported on the discussions that had taken place on their committees, and we explored some of these topics further.

Meeting in April

When we met on April 10, 2025, we first discussed the proposed extension of Christian Klein’s and Dominik Asam’s service contracts. The Supervisory Board later resolved on these matters by way of circular correspondence vote. Next, we looked at how the executive orders on diversity, equity, and inclusion (DEI) issued by the U.S. administration impacted SAP from a legal point of view. In particular, we discussed the “Women in Executive Roles” key performance indicator (KPI) for Executive Board compensation that was currently part of the LTI Plan, and whether it should be replaced with the “Business Health Culture Index” (BHCI) KPI going forward. This non-financial KPI indicates the extent to which SAP offers employees a working environment that promotes health, and supports their long-term employability and their active engagement in reaching our corporate goals. Since further clarification was required, the Supervisory Board decided to wait until the beginning of May to decide on the matter, at which time it resolved, by way of circular correspondence vote, to replace the existing KPI “Women in Executive Roles” with the BHCI and to amend the declaration of compliance as necessitated by the change. Also in our April meeting, the Supervisory Board was informed about further legal aspects of the U.S. administration’s executive orders, and discussed with the Executive Board possible measures to ensure that SAP complied with U.S. legal standards without violating compulsory DEI quotas required by German or EU law. In addition, the Executive Board gave an overview of the key developments and challenges in the first quarter, highlighting in particular the current uncertainty in the global economy, which had also resulted in SAP customers being more hesitant to invest in their IT. It also reported on the current status of the negotiations with the European Commission, which had accused SAP of engaging in anti-competitive conduct in the market for after-sales support and maintenance for on-premise software. The Executive Board expressly disagreed with the Commission’s assessment and described to us its cooperation with the Commission to clarify the matter. The Executive Board also elaborated on the Company’s detailed responses to the allegations, and informed us that the Commission was presently conducting an informal market test to collect feedback from customers and other market participants. Additionally, the responsible Board member provided us with a progress report on People Agenda, the HR strategy that included the rollout of the new HR operating model. Closing out this meeting, we discussed succession planning for the chairperson of the SAP Supervisory Board. Since the current chairperson’s term of office would end at the close of the 2026 Annual General Meeting, the Nomination Committee had devoted time to identifying the skills and expertise required of a successor and to the search for suitable candidates. We decided at this April meeting to nominate René Obermann for election to the Supervisory Board in 2026, with a view to him then assuming the chairperson role in 2027. To ensure a seamless handover, the Supervisory Board additionally resolved to propose to the 2026 Annual General Meeting that the current chairperson’s term of office be extended by one year. René Obermann combines expertise in technology and in Germany’s corporate governance system with extensive knowledge of SAP’s customers and markets.

Meeting in July

For its meeting on July 31, 2025, the Supervisory Board travelled to California, USA, where it also had the opportunity to visit SAP’s Silicon Valley development hub and see various software solutions developed there. During their trip to California, the members of the Supervisory Board were invited to visit technology company Zoox Inc. and Google Cloud Space, and to meet with SAP customers and partners. In addition to the focal topics already mentioned, we used this July meeting to discuss SAP’s acquisition of U.S. company SmartRecruiters, which has developed an AI-based platform that helps customers automate and optimize their talent acquisition process end to end. We approved the acquisition at our meeting on the recommendation of the Finance and Investment Committee, which had deliberated with the Executive Board at length on the opportunities and risks of this transaction at its own meeting the day before. Also on the agenda for this meeting was a presentation by a financial analyst, who gave us his view of SAP, its business, and its future prospects. Next, the members of the Extended and Executive Boards each reported on the latest developments in their respective Board areas and on the current go-to-market strategy and operating model for product development. The Executive Board then presented the progress made in executing the strategy over the past nine months, showcasing various focus programs, and gave us updates on the HR strategy implementation in the People & Culture area. Lastly, we turned to the recent review of the effectiveness of our work: Representatives of the external service provider we had engaged to assist with this review presented the interim findings of a questionnaire-based survey of the Supervisory Board members on their self-assessment of the efficiency, composition, and work of the Supervisory Board and its committees. We thereafter discussed the areas where the responses suggested room for improvements in our practices. One potential idea, for instance, was to allow more time between committee meetings for personal exchange among Supervisory Board members.

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

Meeting in November

When we met on November 6, 2025, the Supervisory Board approved various amendments to the rules of procedure of the Audit and Compliance Committee and of the Finance and Investment Committee. Notably, these amendments included the reassignment of the responsibility for preparing the Supervisory Board’s approval of the annual financial plan, for preparing the proposal to the Annual General Meeting of Shareholders on the appropriation of profits, and for receiving and reviewing the annual European Market Infrastructure Regulation (EMIR) report. The Supervisory Board also approved a change in the membership of the Nomination Committee, which involved Pekka Ala-Pietilä taking over as Committee chairperson from Gunnar Wiedenfels, who was leaving the Committee. Next, the external services provider tasked by us to review the Supervisory Board’s effectiveness presented the results of his survey of Executive Board members regarding collaboration with the Supervisory Board and on the knowledge and expertise on the Executive Board. The Supervisory Board thereafter discussed these results at length and identified specific measures to further enhance the effectiveness of the Supervisory Board and its committees, and of collaboration with the Executive Board. We also received a report at this meeting on the current status of the negotiations with the European Works Council on the amendments to the SAP Employee Involvement Agreement. We were subsequently informed about Margret Klein-Magar’s upcoming departure from the Supervisory Board effective December 31, 2025, due to her early retirement, and the process for electing her successor by the European Works Council was explained. We then discussed with the Executive Board its capital allocation strategy for the coming years including its plans for a new share buyback program that was scheduled to be ratified at the beginning of 2026. Following the recommendation of the Personnel and Governance Committee, we also approved the necessary adjustments to certain financial KPIs in the STI 2025 and in the relevant LTI plans and tranches, which are part of the Executive Board compensation package, so as to eliminate the effects of the SmartRecruiters acquisition. We also looked at the issue of sustainability at SAP in our November meeting. In this regard, the Executive Board updated us on the latest developments in the Company’s sustainability products, on customers’ expectations of those products, and on the Company’s own sustainability management. Further, we were informed about the so-called re-baselining with regard to SAP's goal of achieving net zero by 2030. Re-baselining refers to the recalculation of emissions in the base year—specifically, SAP's greenhouse gas emissions inventory—in order to establish a consistent reference point for tracking our progress in reducing emissions. This approach aims to ensure that progress is accurately reflected and not distorted by methodological or structural changes.

Resolutions by Correspondence Vote

In addition to those described above, we adopted several resolutions—which the relevant committees had deliberated on in advance and recommended to us—by way of a correspondence vote:

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

Format of Meetings in Fiscal Year 2025

¹ thereof one joint meeting of the Finance and Investment Committee and the Audit and Compliance Committee

The Work of the Supervisory Board Committees

The Committees again made a key contribution to the work of the Supervisory Board in 2025, notably by preparing relevant agenda items and resolutions for Supervisory Board meetings, by approving draft resolutions, and by regularly reporting on their deliberations and decisions. The following committees were in place during the year under review:

Personnel and Governance Committee, Audit and Compliance Committee, Finance and Investment Committee, Product and Technology Committee, Nomination Committee, and Government Security Committee.

For more information about the Supervisory Board committees, particularly their respective composition, tasks, and responsibilities, see the Corporate Governance Statement and the Corporate Governance section of SAP’s website.

Besides the matters described above, the committees focused primarily on the following topics in 2025:

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

The work of the committees and their regular reports at our plenary sessions ensured that we were kept fully informed about all matters covered by the committees and were able to discuss them thoroughly.

Conflicts of Interest

Members of the Supervisory Board and of the Executive Board had no conflicts of interest that required disclosure to the Supervisory Board under recommendation E.1 or E.2 of the German Corporate Governance Code. If such a conflict becomes apparent, it will be avoided by the Supervisory Board member concerned not taking part in the relevant discussions and not voting on the matter in question. Insofar as Supervisory Board members, during their tenure, hold executive positions at other companies or have a material shareholding in companies that have current business dealings with SAP, we do not consider their independence to be impaired. The extent of any such business dealings is small and, moreover, transactions are at arm’s length.

Training and Professional Development

The members of the Supervisory Board were once again offered various training and professional development opportunities throughout the year, with appropriate support from the Company. Where relevant, the Company routinely records individual presentations and training courses and places them on a specially configured platform for all Supervisory Board members to access. Onboarding training sessions and one-pagers were provided to new Supervisory Board members to give them essential information about the relevant corporate governance rules and stock market and capital market regulations. In addition, detailed presentations were offered on centralized cash management at SAP, and on the Company’s employee involvement agreement. During their meeting week in November, the members of the Supervisory Board were given the opportunity, at two interactive stations, to learn about Joule, the AI copilot developed and deployed by SAP, and to try it out for themselves between meetings. On December 11, 2025, the Supervisory Board attended a session about the organization and duties of the Company’s government affairs department. Supervisory Board members also had the chance to meet individually with members of the Executive Board to speak with them in detail about aspects of the work their particular Board area was doing.

SAP SE and Consolidated Financial Reports for 2025

BDO was reappointed as the SAP SE and SAP Group auditor for the reporting year at the Annual General Meeting of Shareholders on May 13, 2025, as proposed by the Supervisory Board on the recommendation of the Audit and Compliance Committee. To prepare for the eventuality that German law requires shareholders to ratify the Company’s choice of auditor for the sustainability report once the European Corporate Sustainability Reporting Directive (CSRD) has been transposed into national law, the Annual General Meeting of Shareholders was also asked to ratify this auditor. Prior to the proposed resolution being put to the Annual General Meeting of Shareholders, BDO had confirmed to the chairperson of the Supervisory Board and to the Audit and Compliance Committee that there were no circumstances that might prejudice, or raise any doubt concerning, its independence as the Company’s auditor. In this connection, BDO informed us of the extent of non-audit services that it had either provided to the Group in the past year or was engaged to provide in the year to come. The Supervisory Board agreed with BDO that it should report to the Supervisory Board and record in the auditor’s report any fact found during the audit that was inconsistent with the declaration given by the Executive Board and the Supervisory Board concerning implementation of the Code. On this basis, BDO examined the SAP SE financial statements prepared in accordance with the German Commercial Code, the consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRSs) as required by the German Commercial Code, section 315e, and the combined SAP Group and SAP SE management report prepared in accordance with the German Commercial

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

Code, and certified them without qualification. The auditor thus confirmed that, in its opinion and based on its audit in accordance with the applicable accounting principles, the SAP SE and consolidated financial statements give a true and fair view of the net assets, financial position, and results of operations of SAP SE and the SAP Group. The auditor also confirmed that the combined SAP SE and SAP Group management report is consistent with the corresponding financial statements and as a whole gives a suitable view of the position of SAP SE and the SAP Group and of foreseeable opportunities and risks. In accordance with section 317 (3a) of the German Commercial Code, the auditor also examined and confirmed that the renderings of the financial statements, the management report, the consolidated financial statements, and the combined management report contained in the files submitted on an electronic data carrier, which can be accessed via the secure client portal for SAP, and prepared for the purposes of disclosure comply in all material respects with the requirements of section 328 (1) of the German Commercial Code regarding the electronic reporting format (“ESEF format”). BDO also completed its audit of SAP’s internal control system over financial reporting as required by applicable U.S. rules and issued an unqualified audit opinion. The auditor stated in its opinion that it considers SAP's internal controls with respect to the consolidated financial statements to be effective in all material respects. Additionally, it provided assurance on the group sustainability statement (which includes SAP’s sustainability reporting under CSRD) in the combined management report, and on the compensation report, which it audited separately. All Audit and Compliance Committee members and Supervisory Board members received—initially in the form of drafts that were identical to the final documents—the documents concerning the financial statements mentioned above, the audit reports prepared by BDO in good time. In addition, the Executive Board presented its proposal on the appropriation of retained earnings to us. On February 18, 2026, the Executive Board prepared the financial accounts of SAP SE and the SAP Group for 2025, comprising the SAP SE financial statements, the consolidated financial statements, and the combined management report (including the group sustainability statement), and submitted them without delay to the Supervisory Board.

At its meeting on February 17, 2026, the Finance and Investment Committee discussed with the Executive Board the Executive Board’s proposal on the appropriation of retained earnings, and approved a draft proposal for the Supervisory Board. The Executive Board explained the financial statements of SAP SE and the SAP Group at the meeting of the Audit and Compliance Committee on February 17, 2026 (based on drafts identical to the final documents) and at the audit meeting of the Supervisory Board on February 18, 2026. Members of the Executive Board answered questions from the Committee and the Supervisory Board. At the Audit and Compliance Committee meeting, they also explained the compensation report and the Annual Report on Form 20-F prepared in accordance with the applicable U.S. standards.

After the Executive Board had explained the financial statements, the Audit and Compliance Committee and the Supervisory Board reviewed them (in the form of drafts identical to the final versions), taking BDO’s audit reports (or the drafts identical to the final versions) into account. The Audit and Compliance Committee then passed the compensation report on to the Supervisory Board for approval. The auditor attended both the Audit and Compliance Committee meeting and the audit meeting of the Supervisory Board in person to present the process and results of the audit in detail, and to explain its audit reports (or final draft reports). The auditor also reported that it had not identified any material weaknesses in SAP’s internal control and risk-management systems for financial reporting. Both the Audit and Compliance Committee and the Supervisory Board asked detailed questions about the form, scope, and results of the audit.

The Audit and Compliance Committee reported to the Supervisory Board on its own review of the financial statements of SAP SE and the SAP Group, its discussions with the Executive Board and with the auditor, and its supervision of the financial reporting process. It confirmed that, as part of its supervisory work, it had addressed the SAP Group’s internal control, risk management, and internal auditing systems, and found the systems to be effective.

The Audit and Compliance Committee and the Supervisory Board satisfied themselves that BDO had conducted the audit properly. In particular, they concluded that both the audit reports and the audit itself fulfilled the legal requirements. Based on the report and on the Audit and Compliance Committee’s recommendation, the Supervisory Board approved the results of the audit and, since there were no findings from our own examination, we gave our consent to the SAP SE financial statements, the consolidated financial statements, the combined Group management report, and adopted the compensation report pursuant to the German Stock Corporation Act, section 162. The financial statements and combined management report were thus formally adopted upon approval by the Supervisory Board. The Supervisory Board’s opinion of the Company and the Group coincided with that of the Executive Board as set out in the combined management report. The Supervisory Board considered the proposal presented by the Executive Board on the appropriation of retained earnings. We had regard to the requirements of dividends policy, the effects on the liquidity of SAP SE and the SAP Group, and the interests of the shareholders. We also discussed these matters with the auditor. We then endorsed the Executive Board’s proposal on the appropriation of retained earnings, in accordance with the Finance and Investment Committee's recommendation. The corporate governance statement pursuant to the German Commercial Code, sections 315d and 289f had been approved for publication by the Supervisory Board by way of correspondence vote prior to the audit meeting. Finally, we approved this present Report for submission to the Annual General Meeting of Shareholders.

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

Changes on the Executive Board and Supervisory Board in 2025

By resolution of the Supervisory Board on January 19, 2025, Thomas Saueressig’s service contract was extended for three years, until October 31, 2028. At the same meeting, Sebastian Steinhaeuser was appointed to the Executive Board for a term of three years, effective February 1, 2025. He leads the Strategy & Operations Board area. In May 2025, the Supervisory Board resolved to extend the service contract of SAP’s CEO, Christian Klein, who had already been given a three-year extension, by a further two years. He now has a five-year service contract until the end of April 2030. In May 2025, the Supervisory Board likewise extended the contract of SAP’s CFO, Dominik Asam, by two years, to the end of March 2028. 

Having elected to take early retirement, Margret Klein-Magar stepped down from her role as an employee representative on the Supervisory Board on December 31, 2025. We are grateful to her for her many years of dedicated service on the Supervisory Board.

The Supervisory Board thanks the members of the Executive Board and the Extended Board for their commitment and for their constructive approach to our work throughout the year.

The Supervisory Board also thanks all employees for their hard work in 2025 and for their unwavering dedication to SAP.

On behalf of the Supervisory Board

Dr. h.c. mult. Pekka Ala-Pietilä

(Chairperson)

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

Responsibility Statement

To the best of our knowledge, and in accordance with the applicable reporting principles, the Consolidated Financial Statements give a true and fair view of the assets, finances, and operating results of the SAP Group, and the Combined Management Report of the Group and SAP SE includes a fair review of the development and performance of the business and the position of the Group and SAP SE, together with a description of the principal opportunities and risks associated with the expected development of the Group and SAP SE.

Walldorf, February 18, 2026

SAP SE

Walldorf, Germany

Executive Board of SAP SE

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

Independent Auditor’s Report

To SAP SE, Walldorf

REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OF THE COMBINED MANAGEMENT REPORT

AUDIT OPINIONS

We have audited the consolidated financial statements of SAP SE, Walldorf, and its subsidiaries (the group), which comprise the consolidated statement of financial position as at December 31, 2025, the consolidated income statements, consolidated statements of comprehensive income, consolidated statements of changes in equity and consolidated statements of cash flows for the financial year from January 1, 2025 to December 31, 2025, and notes to the consolidated financial statements, including material accounting policy information.

In addition, we have audited the combined management report (report on the position of the company and of the group) of SAP SE for the financial year from January 1, 2025 to December 31, 2025. In accordance with the German legal requirements, we have not audited the content of those parts of the combined management report listed in section “OTHER INFORMATION”.

In our opinion, on the basis of the knowledge obtained in the audit,

Pursuant to § 322 (3) sentence 1 HGB (German Commercial Code), we declare that our audit has not led to any reservations relating to the legal compliance of the consolidated financial statements and of the combined management report.

BASIS FOR THE AUDIT OPINIONS

We conducted our audit of the consolidated financial statements and of the combined management report in accordance with § 317 HGB and the EU Audit Regulation (No. 537/2014, referred to subsequently as “EU Audit Regulation”) and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). We conducted our audit of the consolidated financial statements in supplementary compliance with the International Standards on Auditing (ISAs). Our responsibilities under those requirements, principles and standards are further described in the “AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OF THE COMBINED MANAGEMENT REPORT” section of our auditor’s report. We are independent of the group entities in accordance with the requirements of European law and German commercial and professional law, and we have fulfilled our other German professional responsibilities in accordance with these requirements.

In addition, in accordance with Article 10 (2) letter (f) of the EU Audit Regulation, we declare that we have not provided non-audit services prohibited under Article 5 (1) of the EU Audit Regulation.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions on the consolidated financial statements and on the combined management report.

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

KEY AUDIT MATTERS IN THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements for the financial year from January 1, 2025 to December 31, 2025. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our audit opinion thereon; we do not provide a separate audit opinion on these matters.

We have identified the following matters as key audit matters to be disclosed in our auditor’s report:

Matter

The Group generated revenue in 2025 of EUR 36,800 million, of which EUR 21,023 million relate to cloud revenues from fees earned from providing customers a cloud offering with software as a service, platform as a service, infrastructure as a service and/or premium cloud support through subscriptions for use of the Group’s cloud solutions. For most of the Group’s cloud offerings, measured both in volume and number, the customer is entitled to continuously access and use one or more cloud solutions for a specified term, therefore cloud revenue is recognized based on time elapsed and thus ratably over the term of access. However, some cloud business models are provisioned on a consumption basis where a customer commits to a fixed value of spend on cloud services throughout the contract term, but with the discretion to call off cloud services on an as needed basis. For those arrangements cloud revenue is recognized based on consumption as it best reflects the measure towards satisfaction of the performance obligation(s).

The evaluation of cloud revenue contracts bears an inherent risk of errors due to the complex nature of certain contracts. SAP defined detailed accounting policy guidelines in line with the applicable accounting standards and has established uniform processes throughout the group to manage the accounting for its cloud contracts. Applying them often requires significant management judgment, in particular with respect to whether certain agreements with the same customer are economically linked and need to be combined, whether the various services that are owed by the Group according to the contract qualify as separate performance obligations, the allocation of the transaction price of a customer contract to the performance obligations in the contract based on standalone-selling prices and the point in time at which the provision of services by the Group for the specific performance obligation commences.

Cloud revenue recognition is a key audit matter due to the significance of the cloud revenue and the high degree of complex judgment required.

The respective cloud revenue disclosures of the Group are contained in section “A.1 Revenue” of the notes to the consolidated financial statements.

Auditor’s Response and Observations

We evaluated the design and we tested the operating effectiveness of certain internal controls related to the revenue process, including controls related to the identification of certain economically linked agreements and separate performance obligations, the allocation of the transaction price to the performance obligations in certain contracts, and the point in time at which the provisioning of service commenced. We tested a sample of underlying contractual agreements and other related documents to evaluate the Group’s assessment of whether certain agreements were economically linked, the identified performance obligations, the allocation of the transaction price and the point in time at which the provision of service for the performance obligations identified commenced. We tested key contractual terms and conditions from the respective contracts to evaluate the identified performance obligations and the point in time at which the provision of service for the identified performance obligations commenced.

Based on the audit procedures we performed, we have found management’s judgments used for revenue recognition of cloud contracts, particularly in the area of assessing whether certain contracts are economically linked and need to be combined, identifying separate performance obligations, allocating the transaction price to the performance obligation, and assessing the point in time at which the provision of services commenced, acceptable.

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

Matter

The Group disclosed contingent liabilities relating to tax uncertainties of EUR 1,187 million. The Group operates in multiple tax jurisdictions which continually revise and change tax laws with complexities and uncertainties due to different interpretations of these tax laws, especially relating to the deductibility of intercompany royalty payments and intercompany services. The identification, recognition, measurement and disclosure of certain income tax risks specifically related to the deductibility of intercompany royalty payments and intercompany services requires significant management judgment in determining key assumptions to be applied to the interpretation of tax laws, related regulations, case laws and mutual agreement procedures across multiple jurisdictions. Significant management judgment is also required to determine whether the deductibility of intercompany royalty payments and intercompany services is more-likely-than-not to be sustained. These management judgments demand a high degree of expertise, for which the Group regularly engages external experts to provide tax opinions to support their own risk assessment.

The respective disclosures regarding uncertain tax positions of the Group are contained in section “C.5 Income Taxes” of the notes to the consolidated financial statements.

Auditor’s Response and Observations

We involved internal experts with specialized skills and knowledge in taxation to evaluate the appropriateness of management’s methods and key assumptions used to estimate certain uncertain tax positions. For certain group business activities, we assessed the reasonableness and consistency of management’s judgment in the interpretation of relevant tax regulations. In addition, we evaluated the significant assumptions underlying the interpretation of relevant tax laws and related interpretations, relevant case law, and mutual agreement procedures in the respective tax jurisdictions. We assessed the reasonableness of conclusions reached regarding the identification, recognition, measurement and disclosure of certain uncertain tax positions related to the deductibility of intercompany royalty payments and intercompany services.

Based on the audit procedures we performed, we have found management’s judgments associated with the estimation of uncertain tax positions, specifically related to the deductibility of intercompany royalty payments and intercompany services, acceptable.

Matter

The Group holds unlisted equity securities held at fair value of EUR 6,324 million as of December 31, 2025, primarily relating to Sapphire Ventures investments. These investments in unlisted equity securities are classified as financial instruments at fair value through profit and loss requiring a recurring fair value measurement using significant unobservable inputs. The measurement of the fair value of certain investments is complex and, with regard to the assumptions made, highly dependent on management's estimates and judgments. This applies particularly to the significant measurement uncertainty associated with the fair value of such investments relating to significant unobservable inputs used, such as the selection of appropriate comparable company data, in deriving revenue multiples as well as forecasted performance of the investees.

The respective disclosures regarding the fair value measurement of unlisted equity securities of the Group are contained in sections “D.6 Equity Investments” and “F.2 Fair Value Disclosures on Financial Instruments” of the notes to the consolidated financial statements.

Auditor’s Response and Observations

We involved internal experts with specialized skills and knowledge in valuation to assist in assessing and evaluating the appropriateness of the valuation technique used for a selection of certain investments in unlisted equity securities relating to Sapphire Ventures investments. We tested the appropriateness of the valuation technique selected by comparing it to our expectation based on industry experience and knowledge of the investment. We assessed the source, reliability and relevance of evidence used in determining significant unobservable inputs and we evaluated the significant unobservable inputs considered in the recurring measurement of fair value by comparing them to historical and market information. In addition, we developed an independent range of acceptable fair value estimates utilizing available market information from third party sources to assess whether managements estimates are reasonable.

Based on the audit procedures we performed, we have found management’s judgments related to the fair value measurement of unlisted equity securities acceptable.

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

OTHER INFORMATION

The executive board and the supervisory board are responsible for the other information. The other information comprises:

Our audit opinions on the consolidated financial statements and on the combined management report do not cover the other information, and consequently we do not express an opinion or any other form of assurance conclusion thereon.

In connection with our audit, our responsibility is to read the other information and thereby acknowledge whether the other information

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

In addition, we were engaged to perform an independent assurance engagement on selected qualitative and quantitative sustainability disclosures, which is also other information of the combined management report 2025. In regard to the nature, extent and conclusions of this independent assurance engagement for specific other information we refer to our independent assurance report dated February 18, 2026.

RESPONSIBILITIES OF THE EXECUTIVE BOARD AND THE SUPERVISORY BOARD FOR THE CONSOLIDATED FINANCIAL STATEMENTS AND THE COMBINED MANAGEMENT REPORT

The executive board is responsible for the preparation of the consolidated financial statements that comply, in all material respects, with the IFRS Accounting Standards as adopted by the EU and the additional requirements of German commercial law pursuant to § 315e (1) HGB as well as the IFRSs as issued by the International Accounting Standards Board and that the consolidated financial statements, in compliance with these requirements, give a true and fair view of the assets, liabilities, financial position and financial performance of the group. In addition, the executive board is responsible for such internal control as the executive board has determined necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud (i. e. fraudulent financial reporting and misappropriation of assets) or error.

In preparing the consolidated financial statements, the executive board is responsible for assessing the group’s ability to continue as a going concern. The executive board also have the responsibility for disclosing, as applicable, matters related to going concern. In addition, the executive board are responsible for financial reporting based on the going concern basis of accounting unless there is an intention to liquidate the group or to cease operations, or there is no realistic alternative but to do so.

Furthermore, the executive board is responsible for the preparation of the combined management report that, as a whole, provides an appropriate view of the group’s position and is, in all material respects, consistent with the consolidated financial statements, complies with German legal requirements, and appropriately presents the opportunities and risks of future development. In addition, the executive board is responsible for such arrangements and measures (systems) as the executive board has considered necessary to enable the preparation of a combined management report that is in accordance with the applicable German legal requirements, the German Accounting Standard number 20 (GAS 20) and the IFRS Practice Statement Management Commentary and to be able to provide sufficient appropriate evidence for the assertions in the combined management report.

The supervisory board is responsible for overseeing the group’s financial reporting process for the preparation of the consolidated financial statements and of the combined management report.

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS AND OF THE COMBINED MANAGEMENT REPORT

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and whether the combined management report as a whole provides an appropriate view of the group’s position and, in all material respects, is consistent with the consolidated financial statements and the knowledge obtained in the audit, complies with the German legal requirements and appropriately presents the opportunities and

risks of future development, as well as to issue an auditor’s report that includes our opinions on the consolidated financial statements and on the combined management report.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with § 317 HGB and the EU Audit Regulation and in compliance with German Generally Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW) and supplementary compliance with the ISAs will always detect a material misstatement. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements and this combined management report.

We exercise professional judgment and maintain professional skepticism throughout the audit. We also

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with the relevant independence requirements and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and, where applicable, the actions taken or safeguards applied to eliminate independence threats.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter.

OTHER LEGAL AND REGULATORY REQUIREMENTS

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING IN THE CONSOLIDATED FINANCIAL STATEMENTS PURSUANT TO PCAOB

Opinion on Internal Control over Financial Reporting in the Consolidated Financial Statements

We have audited SAP SE’s (the “Company’s”) internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (the “COSO criteria”). In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria.

Executive Board’s and Supervisory Board’s Responsibility for the Internal Control over Financial Reporting in the Consolidated Financial Statements

The executive board is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting in the Consolidated Financial Statements.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The supervisory board is responsible for overseeing SAP SE’s internal control over financial reporting in the consolidated financial statements.

Auditor’s Responsibility for the Internal Control over Financial Reporting in the Consolidated Financial Statements

Our responsibility is to express an opinion on SAP SE’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to SAP SE in accordance with U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit of internal control over financial reporting in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances.

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

We believe that our audit provides a reasonable basis for our opinion.

REPORT ON THE ASSURANCE ON THE ELECTRONIC RENDERING OF THE CONSOLIDATED FINANCIAL STATEMENTS AND THE COMBINED MANAGEMENT REPORT, PREPARED FOR PUBLICATION PURPOSES IN ACCORDANCE WITH § 317 (3A) HGB

Assurance Opinion

We have performed assurance work in accordance with § 317 (3a) HGB to obtain reasonable assurance as to whether the rendering of the consolidated financial statements and the combined management report (hereinafter the “ESEF documents”) contained in the electronic file “sap-2025-12-31-DE.xbri” and prepared for publication purposes complies in all material respects with the requirements of § 328 (1) HGB for the electronic reporting format (“ESEF format”). In accordance with German legal requirements, this assurance work extends only to the conversion of the information contained in the consolidated financial statements and the combined management report into the ESEF format and therefore relates neither to the information contained within these renderings nor to any other information contained in the file identified above.

In our opinion, the rendering of the consolidated financial statements and the combined management report contained in the electronic file identified above and prepared for publication purposes complies in all material respects with the requirements of § 328 (1) HGB for the electronic reporting format. Beyond this assurance opinion and our audit opinion on the accompanying consolidated financial statements and the accompanying combined management report for the financial year from January 1, 2025 to December 31, 2025, contained in the “Report on the audit of the consolidated financial statements and of the combined management report” above, we do not express any assurance opinion on the information contained within these renderings or on the other information contained in the file identified above.

Basis for the Assurance Opinion

We conducted our assurance work on the rendering of the consolidated financial statements and the combined management report contained in the file identified above in accordance with § 317 (3a) HGB and the IDW Assurance Standard: Assurance Work on the Electronic Rendering of Financial Statements and Management Reports, Prepared for Publication Purposes in Accordance with § 317 (3a) HGB (IDW AsS 410 (06.2022)). Our responsibility in accordance therewith is further described in the “Auditor’s Responsibilities for the Assurance Work on the ESEF Documents” section. Our audit firm has applied the requirements of the IDW Quality Management Standard: Requirements for Quality Management in the Audit Firm (IDW QMS 1 (09.2022)).

Responsibilities of the Executive Board and the Supervisory Board for the ESEF Documents

The executive board of the company is responsible for the preparation of the ESEF documents with the electronic renderings of the consolidated financial statements and the combined management report in accordance with § 328 (1) sentence 4 No. 1 HGB and for the tagging of the consolidated financial statements in accordance with § 328 (1) sentence 4 No. 2 HGB.

In addition, the executive board of the company is responsible for such internal controls that they have considered necessary to enable the preparation of ESEF documents that are free from material intentional or unintentional non-compliance with the requirements of § 328 (1) HGB for the electronic reporting format.

The supervisory board is responsible for overseeing the process for preparing the ESEF documents as part of the financial reporting process.

Auditor’s Responsibilities for the Assurance Work on the ESEF documents

Our objective is to obtain reasonable assurance about whether the ESEF documents are free from material intentional or unintentional non-compliance with the requirements of § 328 (1) HGB. We exercise professional judgment and maintain professional skepticism throughout the assurance work. We also

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

FURTHER INFORMATION PURSUANT TO ARTICLE 10 OF THE EU AUDIT REGULATION

We were elected as auditor by the annual general meeting on May 13, 2025. We were engaged by the chairperson of the Audit and Compliance Committee on June 10, 2025. We have been the auditor of the consolidated financial statements of the SAP SE without interruption since the financial year 2023.

We declare that the audit opinions expressed in this auditor’s report are consistent with the additional report to the audit committee pursuant to Article 11 of the EU Audit Regulation (long-form audit report).

In addition to the financial statement audit of SAP SE, we have performed various financial statement audits at subsidiaries and have provided to group entities the following services that are not disclosed in the consolidated financial statements or in the combined management report for the audited entity or its controlled entities:

OTHER MATTER — USE OF THE AUDITOR’S REPORT

Our auditor’s report must always be read together with the audited consolidated financial statements and the audited combined management report as well as the assured ESEF documents. The consolidated financial statements and the combined management report converted to the ESEF format — including the versions to be published in the German Company Register — are merely electronic renderings of the audited consolidated financial statements and the audited combined management report and do not take their place. In particular, the ESEF report and our assurance opinion contained therein are to be used solely together with the assured ESEF documents provided in electronic form.

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

GERMAN PUBLIC AUDITOR RESPONSIBLE FOR THE ENGAGEMENT

The German Public Auditor responsible for the engagement is Dr. Jens Freiberg.

Frankfurt am Main, February 18, 2026

BDO AG

Wirtschaftsprüfungsgesellschaft

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Assurance Report of the Independent German Public Auditor on an Assurance Engagement to Obtain Limited and Reasonable Assurance in Relation to the Group Sustainability Statement

Assurance Conclusion and Opinion

We have conducted a limited assurance engagement on the Group Sustainability Statement, taking into account, as set forth in the subsequent paragraph, the reasonable assurance engagement on the disclosures presented in section Basis for Preparation/Independent Assurance of the Group Sustainability Statement included in the combined management report, of SAP SE, Walldorf (hereinafter referred to as “SAP” or the “Group”) for the financial year from 1 January 2025 to 31 December 2025. The Group Sustainability Statement was prepared to fulfil the requirements of Directive (EU) 2022/2464 of the European Parliament and of the Council of 14 December 2022 (Corporate Sustainability Reporting Directive, CSRD) and Article 8 of Regulation (EU) 2020/852 as well as Articles 315b and 315c in conjunction with Articles 289b to 289e of the HGB [Handelsgesetzbuch: German Commercial Code] for a combined non-financial statement.

Based on the particular engagement, we have conducted a reasonable assurance engagement on the following disclosures presented in section Basis for Preparation/Independent Assurance of the Group Sustainability Statement (hereinafter referred to as “selected Own Workforce, E-Waste and Climate Change disclosures”):

Own Workforce

E-Waste

Climate Change

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A reasonable assurance engagement on these disclosures fulfils the requirements for a limited assurance engagement and, in accordance with Recital 60 to the CSRD, thereby complies with the requirements of the CSRD relating to assurance of the Group Sustainability Statement.

Based on the procedures performed and the evidence obtained as part of our limited assurance engagement, nothing has come to our attention that causes us to believe that the accompanying Group Sustainability Statement, taking into account the selected Own Workforce, E-Waste and Climate Change disclosures in the Group Sustainability Statement subject to a reasonable assurance engagement, is not prepared, in all material respects, in accordance with the requirements of the CSRD and Article 8 of Regulation (EU) 2020/852, Articles 315b and 315c in conjunction with Articles 289b to 289e HGB for a combined non-financial statement and the supplementary criteria presented by the executive directors of the Group. This assurance conclusion includes that nothing has come to our attention that causes us to believe that:

In our opinion, on the basis of our reasonable assurance engagement, the selected Own Workforce, E-Waste and Climate Change disclosures in the Group Sustainability Statement were prepared, in all material respects, in accordance with the requirements applicable to these disclosures and the supplementary criteria presented by the executive directors of the Group.

Basis for the Assurance Conclusion and Opinion

We conducted our assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised): Assurance Engagements Other Than Audits or Reviews of Historical Financial Information issued by the International Auditing and Assurance Standards Board (IAASB).

The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.

Our responsibilities under ISAE 3000 (Revised) are further described in the section “German Public Auditor's Responsibilities for the Assurance Engagement on the Group Sustainability Statement”.

We are independent of the entity in accordance with the requirements of European law and German commercial and professional law, and we have fulfilled our other German professional responsibilities in accordance with these requirements. Our audit firm has applied the requirements for a system of quality control as set forth in the IDW Quality Management Standard issued by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW): Requirements for Quality Management in the Audit Firm (IDW QMS 1 (09.2022)) and in the International Standard on Quality Management (ISQM) 1 issued by the IAASB.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our assurance conclusion and opinion.

Responsibilities of the Executive Directors and the Supervisory Board for the Group Sustainability Statement

The executive directors of the Group are responsible for the preparation of the Group Sustainability Statement in accordance with the requirements of the CSRD and the applicable German legal and other European requirements as well as with the supplementary criteria presented by the executive directors of the Group and for designing, implementing and maintaining such internal control that they have considered necessary to enable the preparation of the Group Sustainability Statement in accordance with these requirements that is free from material misstatement, whether due to fraud (i. e., fraudulent sustainability reporting in the Group Sustainability Statement) or error.

This responsibility of the executive directors includes establishing and maintaining the materiality assessment process, selecting and applying appropriate reporting policies for preparing the Group Sustainability Statement, as well as making assumptions and estimates and ascertaining forward-looking information for individual sustainability-related disclosures.

The Supervisory Board is responsible for overseeing the process for the preparation of the Group Sustainability Statement.

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Inherent Limitations in Preparing the Group Sustainability Statement

The CSRD and the applicable German legal and other European requirements contain wording and terms that are subject to considerable interpretation uncertainties and for which no authoritative, comprehensive interpretations have yet been published. Therefore, the executive directors have disclosed their interpretations of such wording and terms in the Group Sustainability Statement. The executive directors are responsible for the reasonableness of these interpretations. As such wording and terms may be interpreted differently by regulators or courts, the legality of measurements or evaluations of sustainability matters based on these interpretations is uncertain.

These inherent limitations also affect the assurance engagement on the Group Sustainability Statement.

German Public Auditor's Responsibilities for the Assurance Engagement on the Group Sustainability Statement

Our objectives are

a) to express a limited assurance conclusion, based on the assurance engagement we have conducted, on whether any matters have come to our attention that cause us to believe that the Group Sustainability Statement, taking into account the selected Own Workforce, E-Waste and Climate Change disclosures in the Group Sustainability Statement subject to a reasonable assurance engagement, has not been prepared, in all material respects, in accordance with the CSRD, the applicable German legal and other European requirements and the supplementary criteria presented by the Group’s executive directors, and to issue an assurance report that includes our assurance conclusion on the Group Sustainability Statement, taking into account the selected Own Workforce, E-Waste and Climate Change disclosures in the Group Sustainability Statement subject to a reasonable assurance engagement.

b) to express a reasonable assurance opinion, based on the assurance engagement we have conducted on whether the selected Own Workforce, E-Waste and Climate Change disclosures in the Group Sustainability Statement are prepared, in all material respects, in accordance with the requirements applicable to these disclosures and the supplementary criteria presented by the executive directors of the Group.

As part of an assurance engagement in accordance with ISAE 3000 (Revised), we exercise professional judgment and maintain professional skepticism. We also:

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Summary of the Procedures Performed for the Limited Assurance Engagement by the German Public Auditor

A limited assurance engagement involves the performance of procedures to obtain evidence about the sustainability information. The nature, timing and extent of the selected procedures are subject to our professional judgment.

In performing our limited assurance engagement, we:

Restriction of Use

We draw attention to the fact that the assurance engagement was conducted for the Group’s purposes and that the report is intended solely to inform the Group about the result of the assurance engagement. Consequently, it may not be suitable for any other purpose than the aforementioned. Accordingly, the report is not intended to be used by third parties for making (financial) decisions based on it. Our responsibility is to the Group alone. We do not accept any responsibility to third parties. Our assurance opinion is not modified in this respect.

Engagement Terms

Our professional liability is governed by no. 9 of the General Engagement Terms and Conditions for Auditors and Audit Firms (Allgemeine Auftragsbedingungen für Wirtschaftsprüferinnen, Wirtschaftsprüfer und Wirtschaftsprüfungsgesellschaften) of 1 January 2024, issued by the IDW (www.bdo.de/auftragsbedingungen).

Frankfurt am Main, February 18, 2026

BDO AG

Wirtschaftsprüfungsgesellschaft

		Integrated Report 2025
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Combined Management Report

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General Information About This Combined Management Report

Basis of Presentation

This Combined Management Report by the SAP Group (collectively, “we,” “us,” “our,” “SAP,” “Group,” or “Company”) and the management report of SAP SE have been prepared in accordance with sections 289, 289a, 289b, 289f, 298, 315, 315a, 315b, and 315d of the German Commercial Code and German Accounting Standard (GAS) No. 20.

Our sustainability information, which is a separate section in this Combined Management Report, is prepared under the Corporate Sustainability Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS); we have followed these provisions on a voluntary basis.

We prepared our Sustainability Statement in accordance with sections 289 b–e and 315 b and c of the German Commercial Code in the form of a Group Sustainability Statement. The scope of consolidation applied in the Group Sustainability Statement is identical to that outlined in the Notes to the Consolidated Financial Statements, Note G.9.

For more information about SAP SE and its results of operations, financial position, and net assets, see the Report on the Financial Performance of SAP SE.

Unless otherwise stated, all the financial information in this report relates to the situation as at December 31, 2025, or the fiscal year that ended on that date. Furthermore, unless otherwise stated, all financial numbers in this Combined Management Report are based on continuing operations. For more information, including the results from discontinued operations, see the Notes to the Consolidated Financial Statements, Note (D.1).

Because the numbers presented throughout this report are rounded, they may not add up exactly to the totals we provide, and percentages may not precisely reflect the absolute amounts.

Independent Audit and Assurance

Our independent auditor, BDO AG Wirtschaftsprüfungsgesellschaft (BDO), audited SAP’s Combined Management Report. The Combined Management Report, with the exception of the Group Sustainability Statement, was audited with reasonable assurance. The Group Sustainability Statement was subject to an independent assurance engagement with limited assurance. Additionally, BDO has provided reasonable assurance on selected sustainability information.

For more information about the scope of the assurance and the underlying reporting criteria, see BDO’s Independent Auditor’s Report and Independent Auditor’s Report on an Limited Assurance Engagement of the Group Sustainability Statement.

Forward-Looking Statements

This Combined Management Report contains forward-looking statements and information based on the beliefs of, and assumptions made by, SAP management using information currently available to them. Any statements contained in this report that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. We have based these forward-looking statements on our current expectations, assumptions, and projections about future conditions and events. As a result, our forward-looking statements and information are subject to uncertainties and risks, many of which are beyond our control. If one or more of these uncertainties or risks materializes, or if management’s underlying assumptions prove incorrect, our actual results could differ materially from those described in or inferred from our forward-looking statements and information. We describe these risks and uncertainties in the Risk Management and Risks section.

The words “aim,” “anticipate,” “assume,” “believe,” “continue,” “could,” “counting on,” “is confident,” “development,” “estimate,” “expect,” “forecast,” “future trends,” “guidance,” “intend,” “may,” “might,” “outlook,” “plan,” “predict,” “project,” “seek,” “should,” “strategy,” “want,” “will,” “would,” and similar expressions as they relate to us are intended to identify such forward-looking statements. Such statements include, for example, those made in the Operating Results (IFRS) subsection; our quantitative and qualitative disclosures about market risk pursuant to the International Financial Reporting Standards (IFRS) accounting standards, namely IFRS 7 and related statements in our Notes to the Consolidated Financial Statements; Expected Developments and Opportunities and Risk Management and Risks sections; and other forward-looking information appearing in other parts of this report.

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To fully consider the factors that could affect our future financial results, both this report and our Annual Report on Form 20-F should be considered, as well as all our other filings and furnishings with the U.S. Securities and Exchange Commission (SEC). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date specified or the date of this report. We undertake no obligation to publicly update or revise any forward-looking statements as a result of new information that we receive about conditions that existed upon issuance of this report, future events, or otherwise, unless we are required to do so by law.

This report includes statistical data about the IT industry and global economic trends that comes from information published by sources including International Data Corporation (IDC), the European Central Bank (ECB), and the International Monetary Fund (IMF). This type of data represents only the estimates of IDC, the ECB, the IMF, and other sources of industry data. SAP does not adopt or endorse any of the statistical information provided by sources such as IDC, the ECB, the IMF, or other similar sources that is contained in this report. The data from these sources is subject to risks and uncertainties, and subject to change based on various factors, including those described above, in the Risk Management and Risks section, and elsewhere in this report. These and other factors could cause our results to differ materially from those expressed in the estimates made by third parties and SAP. We caution readers not to place undue reliance on this data.

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Strategy and Business Model

Overview of SAP

Founded in 1972, SAP is a global company headquartered in Walldorf, Germany. Our legal corporate name is SAP SE. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, customer experience, and others. Today, the Company’s integrated applications aim to connect all parts of a business into an intelligent suite on a fully digital platform in the cloud, thereby replacing the process-driven legacy platform. The SAP Group has a global presence and employed more than 110,000 people as at December 31, 2025.

Our ordinary shares are listed on the Frankfurt Stock Exchange. American Depositary Receipts (ADRs) representing SAP SE ordinary shares are listed on the New York Stock Exchange (NYSE). SAP is a member of Germany’s DAX and TecDAX. Throughout 2025, SAP was among the most valuable companies on the DAX, and in Europe, based on market capitalization.

Our Purpose

At SAP, we remain steadfast in our purpose to “help the world run better and improve people’s lives. Together with our customers, we not only rise to meet today’s challenges, but we are also shaping the future by empowering each other to continuously improve and deliver better outcomes. We believe that progress depends on people and systems working together, and that technology is essential in addressing the most profound economic, environmental, and social challenges. Software and analytics help predict and prevent disasters, make cities smarter, and foster equity in the workplace. By leveraging innovative tools and business models, we help everyone in the SAP ecosystem make business decisions that have a lasting impact.

We recognize our role in minimizing carbon footprints, promoting human rights, and turning sustainability into a competitive advantage by combining applications, data, and AI into a single intelligent system. We are committed to providing AI solutions that are integral to our customers’ most critical business processes, and aim to ensure that these solutions are relevant, reliable, and responsible. Our solutions are designed to help anticipate risks and avert crises, enable smarter cities, and foster a world built on inclusion and equity. Together, we aim to bring out the best in the world around us.

Our Vision

Our vision of bringing out the best in every business reflects our commitment to transform organizations globally. Our commitment to this vision is based on three pillars:

Transform Your Business at Scale with AI

To stay competitive in a rapidly changing political, socioeconomic, and technological landscape, businesses need to continuously transform at scale. We help our customers drive end-to-end business transformation powered by AI. By creating one harmonized data layer and embedding AI-driven intelligence into core processes, our SAP Business Suite unlocks new pathways to organizational innovation and excellence to enhance agility and drive scalable growth.

Achieve More Across the Value Chain

We help companies leverage collective intelligence to become efficient, resilient, and agile across their entire value chain. By embedding AI and connecting end-to-end business processes—from finance to supply chains, and human resources to customer relations—we fuel efficient growth throughout their business networks. Our solutions aim to go beyond internal systems: they link businesses across enterprises and, by digitalizing transactions, foster transparent, resilient, and sustainable value chains.

Innovate Sustainably and with Confidence

Companies are looking to innovate without compromising ethical and security standards while pursuing sustainable business success. We help our customers innovate by embedding security and simple, transparent compliance controls into solutions, enabling them to decide where their data resides and who can access it. By connecting applications, data, and AI, we help companies drive sustainable action and measurable impact.

At SAP, our journey is one of continuous innovation and transformation. We are committed to delivering solutions that integrate seamlessly, evolve alongside our customers, and are ready to grow with their ambitions.

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Our Business Model³

Our business model, through which we implement our vision and strategy, can be summarized as follows:

We create value by first identifying the business needs of our customers and then developing and delivering a portfolio of cloud solutions, services, and support that address these needs. We strive to continuously improve our solutions, identify further business needs, and deliver enhanced value to our customers.

We derive revenue from fees charged to our customers for subscriptions to use our cloud solutions. Software licenses, on-premise support, consulting, development, training, and other services also contribute significant revenue.

For an overview of our product portfolio, see the Our Product Strategy section.

Subsidiaries, Acquisitions, and Joint Ventures

Subsidiaries

SAP SE is the ultimate parent company of the SAP Group. As at December 31, 2025, the SAP Group comprised 216 companies.

For a list of our subsidiaries, associates, and other equity investments, see the Notes to the Consolidated Financial Statements, Note (G.9).

Material Acquisitions

We continue to focus on organic investments in technology and innovations, which are intended to ensure that our product portfolio grows sustainably. Additionally, we may make targeted acquisitions to complement our solution offerings and improve coverage in key strategic markets.

On August 1, 2025, SAP announced its intent to acquire 100% of SmartRecruiters, a leading talent acquisition (TA) software provider. The transaction closed on September 11, 2025, following satisfaction of regulatory and other approvals.

For more information about SmartRecruiters, see the Notes to the Consolidated Financial Statements, Note (D.1).

Sapphire Ventures

In addition to our investments in organic growth and acquisitions, SAP also supports entrepreneurs who aspire to build industry-leading businesses through venture capital funds managed by Sapphire Ventures. Sapphire Ventures manages more than US$11 billion (over €9 billion) and has invested in more than 200 companies. It pursues opportunities in which it can help fuel enterprise growth by adding expertise, relationships, geographic reach, and capital. It places a particular focus on companies and venture funds in Europe, Israel, the United Kingdom, and the United States. Sapphire Ventures has committed to investing more than US$1 billion in the next generation of AI-powered enterprise technology startups.

³ Description of business model, inputs and outputs: ESRS 2 SBM-1 42 (a), (b).

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Our Product Strategy⁴

With the IT landscape continuing to transform at pace, SAP is seeing a clear shift in customer preferences toward the cloud—and toward solutions that are flexible, agile, scalable, and cost-effective. SAP understands the importance of helping customers embrace digital technologies to thrive in today’s dynamic business environment, and has therefore adopted a forward-thinking strategy for sustainable growth and innovation. This strategy also includes sovereign cloud offerings that enable governments and regulated industries to adopt cloud and AI with full control across data, operations, technology, and law, allowing them to innovate on their own terms and under their own governance. We recognize that every organization’s experience with the cloud can be unique and challenging. Yet many customers are already benefiting in many ways: for example, they can allocate personnel who used to manage internal IT teams to other tasks, and ensure online access to systems and data from any location. This shift to the cloud creates new customer requirements and hence new market opportunities that SAP can tap into.

Generative and agentic AI are reshaping how businesses operate and how end-users engage with software. Across industries, AI is becoming the core driver of transformation, redefining business processes and unlocking untapped potential for innovation and growth. To address this latest technology shift, an integrated foundation that seamlessly brings together applications, data, and AI is essential: SAP’s flywheel. The flywheel captures momentum from continuous rotations across the three layers. Deeply integrated Business AI enhances our SAP Cloud ERP applications, which in turn generate richer, more accurate data. With our SAP Business Data Cloud solution, valuable business data from every part of the business feeds into a semantically rich data layer.

SAP Business Suite offers a comprehensive set of integrated solutions, in which applications, data, and AI work as one. It is the destination for all our customers.

The Cloud ERP Suite metric is the subset of SAP Business Suite covering most of our strategic cloud solutions. For more information about Cloud ERP Suite, see the Performance Management System section. The remaining offerings are part of SAP’s extension suite, which supplements and extends the functional coverage of SAP’s solutions for the cloud.

To strengthen our position as a leading enterprise software company, we have adopted an AI-First, Suite-First strategy, which aims to ensure that our initiatives focus on our key differentiators.

AI-First means that we are not just adding AI capabilities to existing business processes, but adapting our approach to product development. We aim to embed Business AI in every application and business process to boost customer productivity, profitability, and innovation, based on the highest standards of responsible AI as outlined in our Global AI Ethics Policy. Central to this approach are Joule (our AI user experience layer), Joule Agents (AI systems that autonomously plan and execute workflows, connect

⁴ Amendments to strategy and business model: ESRS 2 SBM-2 45 c (i). 

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departments, and optimize business processes while collaborating with users and providing insights), and SAP Business Data Cloud (which serves as the data platform across the SAP cloud portfolio, fueling AI capabilities with semantically rich data products).

At the same time, new agentic AI capabilities are reshaping the enterprise technology market, and business process execution is shifting from individual applications to an agentic AI layer that runs all critical processes and becomes the new user experience. To lead this next phase of our transformation, we will be focusing even more strongly on AI in 2026. This includes deploying Joule as the new AI user experience for every user; embedding agentic AI into end-to-end business processes to deliver value through AI assistants; codeveloping with customers to create next-generation AI-powered industry applications; establishing SAP Business Data Cloud as the foundational data layer for AI; and scaling adoption through our RISE with SAP and SAP GROW offerings.

For our cloud products, Suite-First describes our objective of delivering a consistent, or suite-like, experience across our portfolio. SAP Business Technology Platform (SAP BTP) serves as the foundation for this strategy, facilitating development, extensions, and integrations while maintaining a clean core, ensuring that our solutions remain adaptable and forward-looking.

SAP strives to help customers grow their businesses profitably, while at the same time minimizing the risks. To this end, SAP has two journeys, RISE with SAP and SAP GROW, which cater to different customer objectives and requirements. RISE with SAP is targeted at our installed base customers and helps them on their journey from legacy ERP systems to SAP Business Suite. SAP GROW is targeted at new SAP Business Suite customers across a broad market landscape, ranging primarily from those with revenues below €50 million to those with revenues in excess of €1 billion. The offering aims to help them grow their business and simplify work processes. Both journeys provide AI-enabled migration tools that ease our customers transition to SAP Business Suite with less effort.

To guide customers as they migrate to SAP Business Suite, we introduced an evolution of our SAP Services and Support portfolio. The modernized, tiered services and support engagement model will be brought to market in early 2026 and will offer three success plan options: the Foundational Success Plan, the Advanced Success Plan, and the Max Success Plan.

Products⁵

The pillars of SAP’s product strategy, and our development and innovations, are presented below.

SAP Business AI

SAP Business AI capabilities are available across SAP Business Suite and SAP BTP. SAP offers a wide range of embedded AI features built into core business processes across finance, spend, supply chain, procurement, human capital management, customer relationship management, and customer experience, and in IT and industries.

Joule and Joule Agents fundamentally transform how users interact with SAP’s enterprise applications. Joule serves as an intuitive AI experience layer, navigating applications, executing transactions, and orchestrating digital workforces of prebuilt and custom agents across both SAP and non-SAP systems. Joule Agents are able to take over complex tasks that span the enterprise. The SAP Knowledge Graph solution connects and contextualizes data from across the enterprise and enables Joule Agents to reason and act reliably across end-to-end processes. In 2025, we released 30 Joule Agents.

Our AI Foundation solution on SAP BTP ensures that AI models, trusted data, security, and extensibility are deeply embedded—empowering organizations to streamline processes, accelerate cloud transformation, and adopt responsible AI in a secure, scalable manner.

SAP Business Data Cloud

SAP Business Data Cloud is a fully managed software as a service (SaaS) solution that unifies and governs all SAP data and seamlessly connects with third-party data. It aims to enable customers to transform outcomes with intelligent applications, harmonize mission-critical data, and ensure that trusted data can be used as a foundation for successful agentic AI. The solution can help organizations simplify their data landscape with fully managed data and AI capabilities. It can also help organizations build their business data fabric and a connected, open ecosystem that preserves mission-critical business context across all data.

The key capabilities of SAP Business Data Cloud include: SAP Data Products, which are sets of fully managed and certified data and metadata from SAP applications; the SAP Analytics Cloud solution, which unites analytics and enterprise planning in a single product; the SAP Business Warehouse application, which brings mission-critical, historical data to the cloud and the entire data landscape; the SAP Datasphere solution, which gives customers a semantic layer to discover, share, and model the same trusted data across their business data fabric; SAP Business Data Cloud Intelligent Applications, which address specific business problems and can automate, adapt, and learn in real time; the SAP Databricks capability in SAP Business Data Cloud, which unifies

⁵ Description of significant groups of products and/or services offered: ESRS 2 SBM-1 40 a (i).

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data from SAP line-of-business applications, and structured and unstructured data, to accelerate advanced analytics and machine learning workloads; and the SAP Business Data Cloud Connect solution, which provides bidirectional, zero-copy data sharing in SAP Business Data Cloud with third-party data platforms such as Databricks, Google, and Snowflake. In 2025, we released hundreds of prebuilt, SAP-managed data products for SAP Business Data Cloud.

SAP Business Technology Platform

SAP Business Technology Platform (SAP BTP) is a unified platform designed to extend existing systems, integrate applications and business processes, and build AI-supported applications across the enterprise. As the foundation of SAP Business Suite, SAP BTP unlocks the full potential of our customers’ and partners’ applications, data, and AI. 

One of SAP BTP’s key capabilities is SAP Build, which provides an intuitive, open, and unified application development and process automation solution environment for IT and citizen developers. SAP Build features the SAP Joule for Developers add-on and the Joule Studio capability, which allow users to incorporate AI into every aspect of SAP Build and Advanced Business Application Programming (ABAP) development, and to build custom Joule agents and skills. Also part of SAP BTP are SAP Integration Suite—a single scalable, AI-assisted integration platform as a service (iPaaS) to connect and automate business processes across SAP and third-party landscapes—and SAP BTP core capabilities for centralizing application lifecycle, interoperability, security, and administration.

Cloud ERP

SAP Cloud ERP provides software capabilities for finance, risk management, project management, procurement, manufacturing, supply chain management, asset management, R&D, and more. These include capabilities such as the SAP HANA in-memory database, data management, AI, and application lifecycle management—and SAP Cloud ERP solutions, which ease our customers’ transformation to the cloud. These solutions help customers adopt new business models by enabling them to leverage AI, machine learning, and other intelligent technologies for enhanced data analytics and automation.

Financial Management

SAP’s financial management solutions enable organizations to streamline financial operations, ensure compliance, and drive strategic decision-making. SAP delivers a comprehensive, integrated suite across the full spectrum of financial operations—from planning and analysis to the financial close, quote-to-cash, treasury and working capital management, tax and trade, and governance, risk, and compliance—empowering CFOs to elevate their finance organizations from transactional processors to strategic business partners. The SAP Taulia portfolio extends the working capital optimization capabilities in SAP Business Suite by helping businesses and their suppliers release funds trapped in the supply chain, thereby optimizing cash flow and unlocking growth opportunities. Leveraging embedded AI, trusted data, and streamlined processes, these solutions equip finance teams to operate more efficiently, anticipate changes, and lead with confidence.

Spend Management

SAP’s spend management solutions enable procurement teams to unlock real potential from AI and make better decisions with seamless and accessible data. Covering direct and indirect spend, travel and expenses, and external workforce management, these solutions give customers a unified view of their spend to reduce costs, mitigate risks, improve collaboration, and align spend decisions with business strategy. SAP Ariba applications provide a modern, AI-native suite of source-to-pay solutions designed to translate deep insights into seamless processes, ensuring productivity, accuracy, and an optimized employee experience. The SAP Concur portfolio contains solutions for integrated travel, expense, and invoice management. And SAP Fieldglass solutions help businesses find, engage, and manage their global external workforce.

Supply Chain Management

SAP’s portfolio of supply chain management solutions helps companies around the globe and across industries orchestrate their teams, processes, and systems—both internally and with trading partners—to build a stronger supply chain. By providing a comprehensive suite of AI-infused applications that integrate with ERP and adjacent line-of-business solutions, and which digitally connect with trading partner systems, SAP helps break down silos for more efficient, compliant, and responsive supply chains. And, by equipping companies with advanced analytics, operational insights, predictive signals, and recommended actions, it also helps them adapt to changing circumstances and exceed their expectations.

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Human Capital Management

SAP SuccessFactors solutions are designed to empower organizations to create an agile, future-ready workforce in a rapidly changing workplace, and help their employees work smarter and more efficiently. The SAP SuccessFactors portfolio includes an AI-enabled suite of cloud solutions that spans core HR, time tracking, payroll, talent acquisition and management, analytics, and employee experience management.

In September, SAP completed the acquisition of SmartRecruiters, a leading provider of enterprise-grade talent acquisition software. The SmartRecruiters platform will be integrated with the SAP SuccessFactors Human Capital Management (HCM) suite. This addition to the SAP SuccessFactors portfolio will help organizations manage the entire talent lifecycle, from sourcing to onboarding, with enhanced AI-enabled recruiting capabilities.

Customer Experience

SAP Customer Experience (SAP CX) is a comprehensive portfolio of marketing, commerce, sales, and service solutions that are natively integrated with SAP ERP and powered by SAP Business AI to deliver insights, operational efficiency, and scalable customer engagement from a single, unified platform. This integration can provide organizations with a governed, real-time view of their business to enrich customer interactions. Joule with embedded SAP CX AI agents can help marketing, sales, and service teams work faster and smarter by enhancing decision-making and proactively assisting and automating workflows.

Business Transformation Management

SAP’s business transformation management solutions help customers realize holistic, data-driven business transformation across several pillars: business processes with SAP Signavio, applications with SAP LeanIX, and people with WalkMe. The comprehensive approach to transformation that these solutions offer can unlock quantifiable business value for organizations, such as deep business insights, optimized IT landscapes, and help with getting their people on board with change.

SAP Signavio solutions, powered by AI, help organizations manage, analyze, and optimize their business processes to achieve the insights and agility they need for successful business transformations. By benchmarking current process landscapes against best practices, and acting on change recommendations, customers can define a target state, adapt their processes accordingly, and assess whether the outcomes they achieve align with their strategic goals.

With SAP LeanIX, customers can manage and transform their IT landscape. SAP LeanIX solutions enable organizations to create transparency over their IT environment, assess interdependencies and risks, and plan modernization initiatives so that they are well equipped to move toward their target IT landscape—supported by proven reference materials, best practices, and seamless integration with leading SAP and non-SAP solutions.

WalkMe offerings help organizations navigate technology change and maximize the return on their software investments by easing user onboarding in cloud solutions. WalkMe’s digital adoption platform delivers guidance, automation, and contextual AI assistance directly in the flow of work, enabling employees to complete workflows across applications, from SAP and beyond. WalkMe’s digital learning solution helps companies reskill their workforce by embedding training directly into the tools employees use every day.

Sustainability Management

SAP helps customers transform sustainability data into real business opportunities and operational efficiencies. The SAP Sustainability portfolio delivers ERP-centric, cloud-based, AI-enabled sustainability solutions for companies of all sizes and from all industries, and supports them by embedding sustainability into every aspect of their daily business operations. The portfolio includes the following offerings: SAP Sustainability Control Tower, SAP Sustainability Footprint Management, SAP Sustainability Data Exchange, and SAP Green Ledger.

Partners and the Ecosystem

The global SAP partner ecosystem plays a key role in delivering and extending our cloud and solution offerings. Our partners support the entire customer lifecycle—from selling and implementing to running and extending our solutions on SAP BTP—and enable customers to integrate, extend, and innovate across SAP Business Suite.

Services and Support

We continue to evolve our cloud-focused services and support portfolio to focus on customer adoption and consumption.

The foundation of the SAP Services and Support portfolio is SAP Enterprise Support, which provides tools and services, curated content, and mission-critical support. SAP Enterprise Support, cloud editions are included with cloud solution subscriptions.

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Customers who require more guidance from SAP can opt for incremental service plans, such as SAP Preferred Success and SAP Cloud Application Services, and professional services to address project-specific objectives, timelines, and plans.

To help customers who are planning to make an enterprise-wide transformational change, SAP offers SAP MaxAttention and SAP ActiveAttention services for tailored, long-term strategic engagement. Learning and user enablement is available throughout a customer’s journey and ranges from role-based digital content to expert-led live sessions, hands-on practical training, custom learning content, and certification.

Partnerships

SAP announced various partnerships in 2025.

Our Customers

We strive to maximize the value our customers derive from their investment in SAP and from their relationship with us. We do so at every touchpoint in their experience with us over the entire engagement lifecycle. Our customer-facing teams—across solutions, sales, services, customer engagement, ecosystem, and more—work together under an operating model that aims to harmonize internal processes with the goal of delivering improved outcomes for our customers.

Feedback from our customers is crucial to our journey together. To systematically gather and act on these insights, we have a company-wide Global Experience Management (XM) Program⁶ in place. This program aims to achieve a consistent end-to-end

⁶ Description of engagement with customers: ESRS 2 SBM-2 45 (a).

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		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

experience for our customers by standardizing experience initiatives and methodologies to help identify and close any gaps. The head of Customer and Market Intelligence (CMI) in the Strategy & Operations Board area leads our global XM program, which includes the SAP Customer Loyalty Survey. The customer experience metric derived from this survey is a KPI in the short-term incentive component of Executive Board remuneration. Historically, this KPI is the Customer Net Promoter Score (NPS). Given the importance of our customers and their feedback to SAP, the customer experience KPI is one of our main non-financial KPIs and a performance measure in the short-term incentive component of Executive Board compensation.

In 2025, our Customer NPS decreased three points year over year to nine (2024: 12), which is below our target range of 12 to 16.

Starting in 2026, we will revise our customer experience framework and replace the customer net promoter score with the Cloud Customer Satisfaction (CSAT) KPI. For more information, especially for the differentiation between cloud and on-premise customers, see the Performance Management System section.

Policies, such as our Global Code of Ethics and Business Conduct for Employees, and the applicable General Terms and Conditions govern our relationships with our customers.

Our Investments in Innovation⁷

We are committed to scaling AI adoption across our organization to accelerate and optimize our innovation cycle. To drive competitive edge, the focus of our research and development (R&D) activities is on advancing our product portfolio. Our priorities here are to strengthen our AI foundation and seamlessly integrate our products. SAP’s strong commitment to R&D is reflected in our expenditure.

In the reporting year, our R&D expenditure increased year over year. Main driver was the higher, but disciplined, use of contingent workforce, which was partially offset by lower share-based payment expenses. For more information, see Financial Performance: Review and Analysis chapter. While our R&D expenditure increased in 2025, our R&D ratios slightly decreased due to the stronger acceleration in revenues. Our IFRS R&D ratio, which reflects R&D expenditure as a portion of total revenue, decreased 1.0 percentage points (pp) to 18.0% (2024: 19.1%). Our non-IFRS R&D ratio likewise decreased 1.0 pp year over year to 18.0% (2024: 19.0%). At the end of 2025, our total full-time equivalent (FTE) headcount in development was 37,965 (2024: 37,590). Measured in FTEs, our R&D headcount remained at 34% of total headcount (2024: 34%).

Total R&D expenditure not only includes our own personnel costs but also the external costs of work and services from the providers and cooperation partners we work with to deliver and enhance our products. We also incur external costs for the following:

Patents

Our investment in R&D has resulted in numerous patents. As at December 31, 2025, SAP held almost 13,000 (2024: more than 13,000) validated patents worldwide. Of these, more than 600 (2024: more than 700) were granted and validated in 2025.

While our intellectual property is important to our success, we believe our business as a whole is not dependent on any particular patent or combination of patents.

Competitive Intangibles

The majority of (intangible) resources that are the basis for our current and future success do not appear in the book value of equity in our Consolidated Financial Statements. This is apparent from a comparison of the market capitalization of SAP SE (based on all issued shares), which was €256.0 billion at the end of 2025 (2024: €290.3 billion), with the book value of our equity in the Consolidated Financial Statements, which was €45.1 billion (2024: €45.8 billion). This means that the market capitalization of our equity is more than five times the book value.

⁷ Description of business model, inputs and outputs: ESRS 2 SBM-1 42 (a), (b).

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Performance Management System

In the reporting year, we used various measures to manage our performance on our primary financial objectives, which are growth and profitability, and on our primary non-financial objectives, which are customer loyalty, employee engagement, climate performance, and business health culture.

Measures to Manage Our Financial Performance

The following are the key measures we use to manage our operating and overall financial performance. Except for free cash flow, we report our key measures at both actual and constant currencies.

We use cloud revenue, cloud and software revenue, current cloud backlog (CCB), and total revenue to measure our progress toward our growth targets. Cloud revenue comprises the main revenues of our cloud business and is derived from fees earned from providing customers with software as a service (SaaS), platform as a service (PaaS), and infrastructure as a service (IaaS). Cloud and software revenue includes cloud revenue, software license revenue, and software support revenue. The vast majority of customers who purchase software licenses also enter into related support contracts with us that generate recurring support revenue after the software sale. Cloud revenue is our largest revenue stream, followed by software support revenue. For more information about our revenue measures, see the Notes to the Consolidated Financial Statements 2025, Note (A.1).

As of a specific key date, the CCB is the contractually committed cloud revenue we expect to recognize over the upcoming 12 months. It is therefore a subcomponent of our overall remaining performance obligations, as per IFRS 15.120. Contractual periods that are subject to a customer termination for convenience right without a significant early-termination fee, or that are subject to a termination right under applicable law, are excluded from our CCB. For our committed cloud business, we believe the CCB is a valuable indicator of our go-to-market success, as it reflects both new contracts and contract renewals.

To measure our profitability, we primarily use operating profit (non-IFRS) and free cash flow. Operating profit (non-IFRS) offers insight into our overall operational process efficiency and business performance, while free cash flow provides management with supplemental information for assessing our liquidity needs and position. Free cash flow is used to determine the cash flow remaining after all net expenditures required to maintain or expand our organic business have been paid off.

Besides the key measures mentioned above, SAP also uses various supporting measures to offer further insight into our financial performance. These include Cloud ERP Suite revenue,⁸ total cloud backlog (TCB),⁹ share of more predictable revenue,¹⁰ subscription revenue, cloud gross profit, and effective tax rate (non-IFRS).¹¹ The subscription revenue measure, introduced in 2025, is the sum of cloud revenue and revenue from time-based on-premise software licenses, which allow our customers to use our software for a specific, predefined period, and the associated software support. Revenue from time-based on-premise licenses is recognized at a point in time, whereas revenue from the associated software support is recognized over time. We use the subscription revenue measure as an indicator of SAP’s revenues, most of which are recurring, across deployment models and offerings that for strategic reasons are sustained over time. It does not include software licenses and support revenue from our perpetual licenses. From 2026 onward, subscription revenue will replace the share of more predictable revenue. We report most of our supporting measures both at actual and constant currencies.

⁸ We use Cloud ERP Suite revenue as a metric to measure the growth of our portfolio of strategic cloud solutions. Cloud ERP Suite references those offerings that are tightly integrated with our core ERP solutions and are included in key commercial packages, such as RISE with SAP. The following offerings contribute to Cloud ERP Suite revenue: SAP S/4HANA Cloud, SAP Business Technology Platform, and core solutions for People & Culture and payroll, spend management, commerce, customer data solutions, business process transformation, and working capital management.

⁹ As of a specific key date, the TCB is the total contractually committed cloud revenue we expect to recognize. Thus, TCB and CCB are both subcomponents of our overall remaining performance obligations following IFRS 15.120. For our committed cloud business, we believe that the TCB and the CCB are valuable indicators of our go-to-market success, as they reflect both new contracts and contract renewals. Contractual periods that are subject to a customer termination for convenience right without a significant early-termination fee, or that are subject to a termination right under applicable law, are excluded from our CCB and TCB. For more information about how we calculate these numbers, see the Notes to the Consolidated Financial Statements, Note (A.1).

¹⁰ The share of more predictable revenue is the total of cloud revenue and software support revenue divided by total revenue.

¹¹ We define our effective tax rate as the ratio of income tax expense (non-IFRS) to profit before tax (non-IFRS), expressed as a percentage.

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Measures to Manage Our Non-Financial Performance

The following are the key measures we used to manage our non-financial performance in the reporting year.

We measure customer experience because we believe that we can only achieve our financial goals if our customers are satisfied with and loyal to SAP and our solutions. We assess customer experience annually by means of a survey that tracks our customer experience KPI based on a dedicated question on the survey. Historically our KPI metric has been the customer net promoter score (NPS), which is measured with the standard, proprietary “likelihood to recommend” question. Its proprietary scoring methodology arrives at the final NPS by taking the difference between the percentage of “Promoters” and “Detractors”, which are categorized based on customers’ numerical rating from 0-10. “Promoters” are customers who rate their likelihood to recommend SAP with a 9 or 10 on the 11-point scale; “Detractors” are customers rating us as a 0-6. The NPS calculation method ignores “Passives” giving a score of 7 or 8, which is a significant limitation of the metric. Based on the NPS methodology’s subtractive calculation based on percentages of two groups, the range of achievable scores is–100 to +100, with the latter being the best achievable score for customer loyalty.

Starting in 2026, we will revise our customer experience KPI framework by switching from Customer NPS (Net Promoter Score) to Cloud Customer Satisfaction (Cloud CSAT). The Cloud CSAT metric is calculated as a “top 2-box” score, taking the percentage of customers who are “very satisfied” or “satisfied” with SAP, as indicated on a 5-point scale that provides response options from “very satisfied” to “very dissatisfied”. Consequently, the range of achievable scores is between 0 and 100, with the latter being the best achievable score for customer satisfaction as measured by the Cloud CSAT methodology.

The Cloud CSAT KPI is calculated based on feedback from our cloud customers. A cloud customer is a customer providing feedback either (1) explicitly about one of the cloud solutions that they have implemented and are operationally running, or (2) giving feedback about “SAP in general” while having implemented and operationally running either exclusively one or more cloud solution(s) or has a mixed portfolio that does not include certain pre-defined solutions, confirmed to be running as on-premise. If a customer runs any of the pre-defined on-premise solutions (ERP On-Prem, HANA On-Prem, S/4HANA On-Prem, HCM On-Prem, SAP Business Objects, SAP Business Warehouse), with none running on private cloud, they are treated as an on-premise customer and their rating score is not considered in the Cloud CSAT calculation. The revenue generated with cloud solutions in any mixed portfolio counts towards cloud revenue reported in our financial information. With this change, SAP aligns the KPI to our cloud-first strategy. In 2025, the Cloud CSAT score was 75%.

The Employee Engagement Index¹² measures the satisfaction and commitment of our employees, how proud they are of our company, and how strongly they identify with SAP. Applying this measure is recognition that our growth strategy depends on having engaged employees. The index is expressed as a percentage of favorable responses to five questions in our #Unfiltered engagement survey and we report it as the average of the scores retrieved in each of the surveys we run in a fiscal year. The #Unfiltered program is based on a “continuous listening” approach that includes two data collections throughout the year. The average scores provide an assessment, for the full year, of our employees’ engagement level.

The Business Health Culture Index (BHCI)¹³ reflects the extent to which SAP provides a working environment that promotes health, supports long-term employability, and fosters active engagement in achieving corporate goals. The index score is the percentage of favorable responses to 10 questions in our #Unfiltered engagement survey and we report it as the average of the scores retrieved in each of the surveys we run in a fiscal year. In the reporting year, the BHCI replaced the Women in Executive Roles measure as one of our key non-financial performance indicators. In 2025, we added equal opportunities as a new component of the index and replaced one of the health and well-being questions so that the revised index gives a holistic view of the employee experience at SAP across key themes, making it a strong indicator of a healthy work environment.

The gross greenhouse gas emissions metric is used to measure greenhouse gas emissions along the value chain (Scope 1, Scope 2, and Scope 3 emissions relevant to SAP’s business model) as part of our net-zero commitment. We apply a market-based approach. Renewable energies, for example in the form of self-generated renewable electricity, investments in certified renewable energy certificates, long-term green electricity contracts (power purchase agreements), and renewable electricity purchased by our suppliers and customers, can count toward the reduction of greenhouse gas emissions. We define, measure, and report our greenhouse gas emissions according to the Greenhouse Gas (GHG) Protocol (in millions of tons of CO₂ equivalents). The reporting also complies with ESRS.

In 2026, we intend to revise the methodology we use to calculate Scope 3 GHG emissions. We will replace our current methodology for calculating category 11 emissions from the use of sold products, which is based on the total amount of active maintenance contracts, with a forward-looking approach that considers the estimated emissions during the lifetime of all new systems sold within a specific period. This change aligns our approach more closely with the GHG Protocol. The revised calculation methodology will

¹² Methodologies and significant assumptions behind the metric - Employee Engagement Index: ESRS 2 MDR-M 77 (a).

¹³ Methodologies and significant assumptions behind the metric - Business Health Culture Index: ESRS 2 MDR-M 77 (a).

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result in a significant decrease in reported emissions and therefore lead to a re-baselining in accordance with the GHG Protocol. Had this methodology been applied in the reporting year, our 2025 GHG emissions would have been 3,590 kilotons.

Value-Based Management

Our holistic view of the performance measures described above, and the associated analyses, together form the foundation of our value-based management. We use planning and control processes to manage the compilation of these key measures and their availability to our decision-makers across various management levels. SAP’s long-term strategic plans are the point of reference for our short- and medium-term planning and controlling processes. We initially identify future growth and profitability drivers at a highly aggregated level for the entire SAP Group.

In a first step, the financial plan’s growth ambition is determined by the Group’s comprehensive product portfolio, which is grouped into solution areas, and profitability drivers are allocated to functions such as development, marketing, sales, delivery, and administration.

In a second step, the planned total revenues and total expenses are allocated to the operating segments and the areas of functional responsibility of the individual members of the Executive Board (“Board area”). If one of these Board areas represents both a functional department and operating segments, planned revenues and expenses are allocated at segment level. Budget adjustments may be applied during the year to reflect changes in priorities, to achieve efficiency targets, and to reflect internal and external factors. Budget adjustments and the assessment of the performance are managed either at the Board area level if the Board area constitutes a single segment, or at the segment level if the Board area comprises several segments. The Executive Board member is responsible for distributing the budget within the Board area or at segment level as applicable. Based on an integrated portfolio process running in parallel to the budgeting process, we ensure aligned investment behavior across Board areas with regard to specific solution or sub-solution areas.

In a final step, customer-facing revenue targets and cost-of-sales and marketing targets are broken down into sales regions and market units.

Based on our detailed annual plans, we determine the budget for the respective fiscal year. We also have processes in place to forecast revenue and profit on a quarterly basis, to quantify whether we expect to realize our financial targets, and to identify any deviations from plan. We continuously monitor the affected operating segments and board areas in the SAP Group to analyze their developments and define any appropriate actions. Our entire network of planning, controlling, and reporting processes is implemented in integrated planning and information systems, based on SAP software, across all organizational units so that we can conduct the evaluations and analyses needed to make informed decisions. Financial targets for headcount and expenses are substantially based on our topline ambitions. If we determine that SAP’s topline plans are at material risk of not being achieved, we need to be agile and ensure that planned expenses are still properly aligned to the Company’s overall financial ambition.

Non-IFRS Financial Measures Cited in This Report

Explanation of Non-IFRS Measures

We disclose certain financial measures that are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures. Our non-IFRS financial measures may not correspond to non-IFRS financial measures that other companies report. The non-IFRS financial measures that we report should only be considered in addition to, and not as substitutes for, nor as superior to, our IFRS financial measures.

We believe that the supplemental historical and prospective non-IFRS financial information we disclose is useful to investors because it is used by our management, in addition to financial data prepared in accordance with IFRS, to gain a more transparent understanding of our past performance and our anticipated future results.

We use the non-IFRS measures consistently in our internal planning and forecasting, reporting, and compensation, as well as in our external communications, as follows:

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Our non-IFRS financial performance measures reflect adjustments based on the items below, as well as adjustments for the related income tax effects.

Operating Expense (Non-IFRS)

Numbers that are identified as operating expenses (non-IFRS) have been adjusted by excluding the following expenses:

We exclude certain acquisition-related expenses for the purpose of calculating operating profit (non-IFRS) and operating margin (non-IFRS) when evaluating SAP’s continuing operational performance, because these expenses generally cannot be changed or influenced by management after the relevant acquisition other than by disposing of the acquired assets. Since management at levels below the Executive Board does not influence these expenses, we generally do not consider these expenses for the purpose of evaluating the performance of management units. We also exclude restructuring expenses because they are volatile and generally cannot be influenced by management at levels below the Executive Board. Furthermore, we exclude expenses for regulatory compliance matters, as these expenses are non-recurring and relate to conduct that took place in prior performance periods, so that users of our consolidated financial statements and the combined management report can see the information that our management uses to manage the business.

Effective 2025, numbers that are identified as operating profit (non-IFRS) are adjusted by excluding expenses related to the Teradata litigation, since these fees and expenses are not indicative of our operating performance or management's allocation of resources to our ongoing business activities. By excluding these non-recurring expenses, SAP will provide additional insight into its operating performance, increase period-over-period comparability, and provide users of SAP’s financial statements the information that our management uses to manage the business.

Non-Operating Income, Net (Non-IFRS)

Numbers that are identified as non-operating income, net (non-IFRS) have been adjusted by excluding the following effects:

Consistent with the adjustments we make to our operating expenses (non-IFRS) by excluding amortization expenses and impairment charges for intangibles acquired in business combinations, we adjust our non-operating income, net (non-IFRS) by excluding disposal gains and losses arising from the sale of these intangibles. These net disposal gains and losses are not indicative of SAP’s operations. We believe that by excluding these gains and losses, we improve our period-over-period comparability.

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		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

Financial Income, Net (Non-IFRS)

Numbers that are identified as financial income, net (non-IFRS) have been adjusted by excluding the following gains and losses:

Excluding gains and losses from equity securities, net, improves the period-over-period comparability by reducing volatility caused by share price fluctuation, market developments, and other factors beyond our control.

Effective Tax Rate (Non-IFRS)

The effective tax rate (non-IFRS) is presented for supplemental informational purposes only. We do not provide an outlook for the effective tax rate (IFRS) due to the uncertainty and potential variability of gains and losses associated with equity investments, which are reconciling items between the two effective tax rates (non-IFRS and IFRS). These items cannot be provided without unreasonable efforts, but they could have a significant impact on our future effective tax rate (IFRS).

Constant Currencies Information

We believe it is important for investors to have information that provides insight into the development of our sales. Revenue measures determined under IFRS provide information that is useful in this regard. However, both sales volume and currency effects impact period-over-period changes in sales revenue. We do not sell standardized units of products and services so we cannot provide relevant information on sales volume by providing data on the changes in product and service units sold. To provide additional information that may be useful to investors in breaking down and evaluating changes in sales volume, we present information about our revenue and about various values and components relating to operating profit that are adjusted for foreign currency effects. We calculate constant currency measures by translating foreign currencies using the average exchange rates from the comparative period instead of the current period. Constant currency values for our current cloud backlog and total cloud backlog measures use the closing exchange rate from the previous year’s corresponding key date instead of the average exchange rate.

Free Cash Flow

Among other measures, we use free cash flow to manage our overall financial performance. In 2025, we revised our definition of free cash flow so that it now includes the proceeds from sales of intangible assets and property, plant, and equipment, and therefore better reflects how SAP’s management evaluates the cash flow generated by operating activities after investments in long-term assets and leasing. We define free cash flow as net cash from operating activities adjusted for purchases of intangible assets and property, plant, and equipment; for proceeds from sales of intangible assets and property, plant, and equipment; and for payments of lease liabilities. Further impacting our free cash flow, effective 2025 we no longer include interest paid and interest received in net cash flows from operating activities. For more information, see the Notes to the Consolidated Financial Statements 2025, Note (IN.1). Prior year amounts were adjusted accordingly.

Usefulness of Non-IFRS Measures

We believe that our non-IFRS measures are useful to investors for the following reasons:

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Limitations of Non-IFRS Measures

Without being analyzed in conjunction with the corresponding IFRS measures, the non-IFRS measures are not indicative of our present and future performance primarily for the following reasons:

We believe that constant currency measures have limitations, particularly as the currency effects that are eliminated constitute a significant element of our revenue and expenses and could materially impact our performance. We therefore limit our use of constant currency measures to the analysis of changes in volume as one element of the full change in a financial measure.

Despite these limitations, we believe that the presentation of our non-IFRS measures and the corresponding IFRS measures, together with the relevant reconciliations, provides useful information to management and investors about present and future business trends relating to our financial condition and results of operations.

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Reconciliation of IFRS to Non-IFRS Financial Measures for 2025 and 2024

Reconciliation of Non-IFRS Revenue

Reconciliation of Non-IFRS Operating Expenses

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Reconciliation of Non-IFRS Profit Numbers, Income Tax Expense, and Key Ratios

¹ from continuing and discontinued operations

Reconciliation of Operating Cash Flow from Continuing Operations to Free Cash Flow

The free cash flow definition was revised in the reporting year to include proceeds from sales of intangible assets and property, plant, and equipment. For more information, see Free Cash Flow in the Performance Management System section. Additionally as of 2025, interest paid and interest received are no longer part of the net cash flows from operating activities. For more information, see the Notes to the Consolidated Financial Statements 2025, Note (IN.1). The comparison year has been retrospectively adjusted to conform with the new definition.

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Non-IFRS Operating Expense Adjustments by Functional Areas

¹ Regulatory compliance matters

Reconciliation of non-IFRS Profit Before Tax

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Financial Performance: Review and Analysis

Economy and the Market

World Economy

The global economy proved resilient in 2025, but remained subdued compared to its pre-pandemic average, reports the European Central Bank (ECB) in its most recent Economic Bulletin.¹ Geopolitical tensions, particularly Russia’s war against Ukraine, and tariff negotiations remained major sources of uncertainty, weighing on the global economy. On the other hand, investments in artificial intelligence (AI), including semiconductors, strengthened global trade in technology products. Overall, economic growth was stronger in emerging market economies in 2025, with India standing out in particular.

Concerning the EMEA region in 2025, the ECB found that the economy grew more strongly in the euro area than expected and was mostly services-led. This applied particularly to the information and communication sector, while activity in industry and construction remained flat. All in all, the first half of the year was volatile due to frontloading in response to higher U.S. tariffs and related uncertainty. Only the second half of the year showed stronger domestic consumption and investment in connection with additional public spending on infrastructure and defense, particularly in Germany. Overall, the euro area economy also benefited from a robust labor market, with unemployment close to its historical low towards the end of 2025.

As for the Americas region and the United States, private consumption was more positive in 2025 than the ECB had previously expected. Investments in AI further supported U.S. economic growth. However, the federal government shutdown in the United States in the fourth quarter led to a decline mostly in services activity, but the manufacturing sector was also affected and could only partly offset the economic slowdown.

For the APJ region, the ECB reports that China’s economic activity grew moderately in both the services and the manufacturing sector in 2025. Domestic demand weakened yet export growth remained strong, with net exports contributing positively to economic progress. Toward the end of 2025, manufacturing activity contracted, whereas the services sector continued to expand, albeit more softly in the second half of the year.

¹ European Central Bank, Economic Bulletin, Issue 8/2025, Publication Date: January 15, 2026.

The IT Market

The global IT market sustained its growth momentum in 2025, underpinned by accelerating investments in AI-enabled transformation, modernization of ERP platforms, and widespread cloud adoption across industries. According to International Data Corporation (IDC), “The AI age is ushering a new ERP product that is using AI technology to enhance and augment the functionality,” with intelligent automation, autonomous workflows, and embedded decision support now defining enterprise technology innovation.¹

Throughout 2025, the convergence of AI and enterprise applications matured rapidly, with AI-enabled ERP systems emerging as a key investment priority. According to IDC, “IDC's May 2025 SaaS Path Survey finds 44% of organizations plan to invest in AI-powered ERP applications, while 22% plan to replace their current applications if generative AI (GenAI) is not included in the next release.”² These shifts reflect growing demand for business systems that deliver real-time insights, reduce manual workloads, and support autonomous operations at scale. As AI reshaped competitive dynamics across the software industry, enterprises increasingly distinguished between platforms that could integrate and scale intelligence effectively and those at risk of falling behind, particularly in environments requiring high reliability, security and regulatory compliance.

At the same time, the global cloud market continued to evolve from a foundational utility into a dynamic ecosystem powering the next wave of enterprise innovation. “The convergence of AI and cloud will give rise to agentic platforms that autonomously manage everything from workload placement to security, enabling a new level of efficiency and strategic value,”³ predicts IDC. Demand for cloud-based ERP remained especially strong, driven by the need to deploy intelligent systems at scale while reducing infrastructure complexity and costs. In parallel, rising customer and regulatory demands for data sovereignty accelerated sovereign cloud discussions across Europe and other regulated markets, reflecting growing emphasis on data residency, compliance, and operational control as integral components of enterprise cloud strategies.

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These trends reinforced cloud ERP’s role as the dominant deployment model in the digital enterprise landscape in 2025. As AI adoption accelerated across the IT stack, organizations increasingly pursued modular, composable systems anchored in the cloud, signaling a fundamental shift in how business software is designed, delivered, and operated.

¹ IDC Worldwide Enterprise Resource Planning Applications Software Forecast, 2025-2029: AI Empowers the Future, September 2025, IDC #US53742525.

² IDC MarketScape: Worldwide AI-Enabled Large Enterprise ERP Applications 2025 Vendor Assessment, October 2025, IDC #US52976925.

³ IDC FutureScape: Worldwide Cloud 2026 Predictions, October 2025, IDC #US53859425.

Impact on SAP

The year 2025 was a pivotal one for SAP, as the Company strengthened its leadership position in enterprise application software during a time of accelerated change across the IT landscape. In the face of macroeconomic uncertainty, driven in part by fluctuating trade policies and tariff volatility, SAP remained a trusted partner to both the world’s largest enterprises and smaller, fast-scaling businesses undergoing digital transformation.

During the year, customers increasingly looked to SAP not only for modernization but for solutions that could deliver tangible business value from AI within mission-critical processes. This reinforced SAP’s positioning as a leading AI-driven SaaS provider and reflected a broader shift in customer expectations toward scalable, outcome-oriented deployments. In particular, SAP’s approach to Business AI resonated with customers because it embeds AI directly into core business workflows and is powered by rich enterprise data, enabling customers to move beyond isolated use cases toward integrated, AI-enabled operations at scale.

At the same time, the broader IT market underwent a period of transition. Businesses continued to reassess their technology priorities in response to cost pressures, evolving architectural needs, and the rapid introduction of generative AI (gen AI) capabilities. This shift in focus from experimentation to value delivery favored vendors that could offer integrated platforms, operational flexibility, and enterprise-grade scale. SAP’s end-to-end portfolio, including RISE with SAP, SAP GROW, SAP Business Technology Platform (BTP), SAP Business Data Cloud, and Joule, aligned well with these evolving needs.

Geopolitical developments and increasing regulatory requirements also elevated data sovereignty from a compliance consideration to a strategic decision factor. Customers, particularly in regulated industries and the public sector, increasingly sought sovereign cloud solutions that deliver innovation while ensuring data residency, control, and regulatory compliance. These requirements are shaping customer cloud deployment decisions and operating models, reinforcing the importance of sovereign cloud capabilities as enterprises navigate a more fragmented global environment. SAP’s sovereign cloud strategy directly addresses these needs and represents a meaningful opportunity to support customers operating under heightened regulatory and geopolitical complexity.

As a result, SAP saw consistent momentum across its strategic product areas. Customers turned to our platform not only for modernization but also as a path to simplify operations and unlock new value through embedded intelligence.

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

Performance Against Our Outlook for 2025

As in previous years, our 2025 published financial outlook, except free cash flow and effective tax rate, is based on constant currencies. In this section, we therefore discuss performance against our outlook at constant currencies, unless otherwise stated. The results for 2024 are presented at actual currencies with the exception of growth rates, which are at constant currencies. For more information about our performance measures, see the Performance Management System section.

¹ at actual currencies
Changes in our outlook within the year 2025 have been marked bold. The outlook for 2025 in our Q1 Quarterly Statement and Q2 Quarterly Statement remained unchanged.

Financial Performance

Our current cloud backlog (contractually committed cloud revenue that we expect to recognize over the upcoming 12 months) reached €21.05 billion at actual currencies (€22.54 billion at constant currencies; 2024: €18.08 billion at actual currencies), which was an increase of 25% on a constant currency basis (2024: 29% at constant currencies). This represents a more pronounced slowdown in the growth rate than anticipated. Large transformational deals with high cloud revenue ramps in outer years and termination for convenience clauses required by law negatively impacted constant currency current cloud backlog growth by approximately 1pp.

The resulting cloud revenue grew from €17.14 billion (at actual currencies) in 2024 to €21.66 billion (at constant currencies) in 2025, in line with our revised guidance range toward the lower end of €21.6 billion to €21.9 billion. That represents an increase of 26% at constant currencies. Cloud and software revenue grew 12% at constant currencies to €33.44 billion (2024: €29.83 billion at actual currencies) and thus ended in line with our outlook range for 2025 of €33.1 billion to €33.6 billion. Total revenue on a constant currency basis grew 11% in 2025 to €37.80 billion (2024: €34.18 billion at actual currencies), thus marking a slight acceleration in the growth rate. For more information about revenue, see the Revenue section.

Non-IFRS operating profit in 2025 was €10.66 billion on a constant currency basis (2024: €8.15 billion at actual currencies), reflecting a strong increase of 31% at constant currencies. IFRS and non-IFRS operating profit and margin benefitted from a strong cloud revenue growth and from the results of the Company-wide restructuring program which was announced in January 2024 and concluded in early 2025. Non-IFRS operating profit came in above our revised guidance range toward the upper end of €10.3 billion to €10.6 billion at constant currencies. For more information about IFRS operating profit, see the Operating Profit and Operating Margin section

For the full year, free cash flow increased 95% to €8.24 billion (2024: €4.22 billion). The improvement compared to the prior year was mainly attributable to higher profitability and to lower payments for restructuring and share-based compensation. For more information about free cash flow, see the Analysis of Consolidated Statements of Cash Flow section.

The IFRS effective tax rate was 28.7% (2024: 33.9%) and the non-IFRS effective tax rate was 30.5% (2024: 32.3%). The IFRS effective tax rate is lower than the non-IFRS tax rate due to tax benefits from tax-exempt income.

		Integrated Report 2025
		To Our Stakeholders	Combined Management Report	Consolidated Financial Statements IFRS	Additional Information

Non-Financial Performance

In 2025, our Customer NPS decreased three points year over year to 9 (2024: 12), which is below our target range of 12 to 16. The Business Health Culture Index increased 1pp to 81% (2024: 80%), at the midpoint of the target range of 80% to 82%. The Employee Engagement Index for the full year 2025 increased 2pp year over year to 76% (2024: 74%), at the midpoint of the target range of 74% to 78%. Total carbon emissions decreased to 6.3 megatonnes (Mt) in 2025 (2024: 6.9 Mt), in line with our guidance for a steady decrease.

Executive Board’s Assessment

Despite a greater-than-expected deceleration of the cloud backlog growth rate to 25% at constant currencies, total cloud backlog performed strongly, increasing 30% at constant currencies to €77 billion, partially due to large transformational deals with high cloud revenue ramps in outer years. At the same time, we see SAP Business AI gaining momentum, with more than two-thirds of our cloud order entry containing SAP Business AI in the fourth quarter of 2025 and therefore increasing more than 20pp compared to the third quarter of 2025. This performance demonstrates the underlying momentum of our business, as well as our potential for the future.

Our ability to drive top line growth while exceeding our profitability and free cash flow expectations reflects the consistent execution against the outlook we provided at the beginning of the year. While the macroeconomic challenges persisted, we took deliberate steps to reinforce our foundation and align the business for durable, sustainable performance.

Overall, the course of business in the reporting year was favorable.

Operating Results (IFRS)¹⁴

This section on operating results (IFRS) discusses results only in terms of IFRS measures, so the IFRS numbers are not expressly identified as such.

We break our operations down into three regions: the Europe, Middle East, and Africa (EMEA) region, the Americas region, and the Asia Pacific Japan (APJ) region. We allocate revenue amounts to each region based on where the customer is located. For more information about revenue by geographic region, see the Notes to the Consolidated Financial Statements, Note (A.1).

Revenue

Total Revenue¹