What is SAP's (NYSE:SAP) latest dividend proposal?

SAP has proposed a 6.4% increase in its annual dividend for fiscal 2025, raising it to €2.50 per share from €2.35 in the previous year. If approved, this would result in a total distribution of approximately €2.92 billion to shareholders.

Why is SAP increasing its dividend?

SAP’s management proposed the dividend increase as a sign of confidence in the company’s growth, particularly its pivot to the cloud. The increase follows a year marked by record backlogs and significant investments in generative AI, highlighting the company’s positive outlook.

What is the payout ratio for SAP's dividend?

SAP’s payout ratio for the proposed €2.50 per share dividend stands at 40.7% of non-IFRS profit, aligning with the company’s policy of returning at least 40% of adjusted earnings to investors.

How much will SAP distribute to shareholders if the dividend is approved?

If the proposed dividend is approved at SAP’s annual general meeting, the company will distribute approximately €2.92 billion to its shareholders.

What is SAP's total cloud backlog and how does it relate to the dividend increase?

SAP's cloud backlog surged by 30% to a record €77 billion, driven by strong demand for its "Rise with SAP" and "Grow with SAP" programs. This growth in the cloud business is a key factor behind the company’s confidence, reflected in the proposed dividend increase.

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SAP sweetens shareholder returns with dividend hike

Written by Isaac FrancisPublished Feb 19, 2026, 12:00 AMLast Updated Jul 6, 2026, 10:45 AM

Walldorf-based SAP (NYSE:SAP) today proposed a 6.4 percent increase to its annual dividend, signaling management’s confidence in the company’s pivot to the cloud after a fiscal year defined by record backlogs and a massive bet on generative AI.

The software giant’s executive and supervisory boards recommended a payout of €2.50 per share for fiscal 2025, up from €2.35 in the prior year.

If approved at the annual general meeting, SAP will distribute approximately €2.92 billion to shareholders.

The payout ratio stands at 40.7 percent of non-IFRS profit, consistent with the firm’s policy of returning at least 40 percent of adjusted earnings to investors.

The dividend hike comes on the heels of a transformative year for SAP.

In its late-January earnings release, the company reported that its total cloud backlog surged 30 percent to a record €77 billion, driven by the rapid adoption of its "Rise with SAP" and "Grow with SAP" programs.

While a slight shift in deal timing in the fourth quarter caused some short-term share price volatility, the firm exceeded its full-year 2025 free cash flow targets, reaching €8.2 billion.

SAP sweetens shareholder returns with dividend hike

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