Sven Merkt

Sven Merkt of Barclays asked if recent geopolitical events have led to increased client interest in SAP's own infrastructure offering and if there are any plans to revitalize this business.

Answer

CEO Christian Klein stated they have not seen a significant shift from existing customers due to geopolitics. Instead, he highlighted SAP's focus on building out its sovereign cloud capabilities, such as the NS2 offering in the U.S., to meet specific public sector and regulated industry needs, noting that the highest level of sovereignty is not always required.

Sven Merkt of Barclays asked for color on the trend in software support revenue and whether its decline would accelerate, and also questioned the conservative appearance of the implied Q4 operating profit guidance.

Answer

CFO Dominik Asam explained that the support revenue decline is a gradual trend and will mathematically accelerate as more of the maintenance base converts to cloud. He attributed the Q4 operating profit outlook to prudence on software license revenue, back-loaded bonus programs, the dilutive impact of WalkMe, and a delayed hiring ramp, confirming that the 2025 profit ambition remains firmly on track.

Sven Merkt asked for commentary on the growth of transaction-related cloud revenues in Q2 and the outlook for the second half of the year, including any relevant comparisons.

Answer

CEO Christian Klein reported a -2% growth for transactional cloud revenue in Q2 and expects a similar or slightly better trend in H2, noting its dependence on economic activity. CFO Dominik Asam added that the impact is diminishing as transactional revenue becomes a smaller part of the overall mix. He also highlighted that the strong 33% Cloud ERP Suite growth already absorbs this headwind.