SAP, Europe’s largest software company, has raised its 2025 financial outlook, citing strong growth in cloud computing revenue. The company now expects operating profit to reach between €10.3 billion and €10.6 billion, up from its previous forecast of around €10.2 billion. Cloud revenue is also projected to exceed prior estimates, reaching between €21.6 billion and €21.9 billion.
In the fourth quarter, SAP’s cloud revenue grew 27% (adjusted for currency effects) to €4.71 billion, surpassing analyst expectations. Cloud and software revenue rose 11% to €8.27 billion, while operating income, adjusted for special items, increased 24% to €2.44 billion. These results highlight SAP’s strong momentum in cloud services despite economic uncertainties.
However, SAP is undergoing a workforce restructuring as it adapts to the AI-driven market, reviewing up to 10,000 jobs out of its 100,000 employees. Meanwhile, SAP shares declined alongside other European tech stocks following investor concerns about the profitability of AI-related investments, triggered by the performance of a Chinese discount AI model.
Source: REUTERS