SAP, Europe’s largest software maker, has reported a 25 percent increase in its cloud business for the second quarter.
On Monday, the company announced that total revenue rose by 10 percent to 8.29 billion euros ($9.02 billion), exceeding the consensus forecast of 8.25 billion euros, driven by strong demand for its business planning software.
SAP’s cloud revenue reached 4.15 billion euros, aligning with the median analyst estimate from a consensus posted on the company’s website.
The German software firm has raised its 2025 adjusted operating profit forecast to 10.2 billion euros from the previous 10 billion euros, citing expected efficiency gains from its ongoing transformation program.
SAP CEO Christian Klein expressed confidence in the company’s future, stating, “We continue to invest into our transformation to be the leader in Business AI. Given our progress and strong pipeline, we are confident to achieve accelerating topline growth through 2027.”
Despite these gains, SAP reported an 11 percent decline in quarterly operating profit to 1.22 billion euros, attributed to restructuring expenses amounting to 600 million euros. In January, SAP announced a 2 billion euro restructuring program, which involves either retraining 8,000 employees with AI skills or replacing them through voluntary redundancies.
