SAP, the largest software producer in Europe, revealed a 25% growth in its cloud business and above analysts’ estimates for overall revenue for the second quarter.
The biggest software manufacturer in Europe, SAP (SAPG.DE) surpassed analysts’ projections for overall revenue for the second quarter on Monday, and announced a 25% increase in its cloud business. Thanks in part to demand for its business planning software, the company’s overall revenue increased by 10% to 8.29 billion euros ($9.02 billion), barely beating the 8.25 billion euros analysts had predicted. The company’s website stated that the cloud revenue of 4.15 billion euros was in line with the median analyst estimate from a consensus.
With expected efficiency benefits from its transformation initiative, the German company raised its 2025 adjusted operating profit projection to 10.2 billion euros from 10 billion euros. “We are keeping up our investments in order to lead the way in business with artificial intelligence. We are confident that we will accelerate topline growth through 2027, given our momentum and robust pipeline,” CEO Christian Klein stated in a statement.
The corporation reported that 600 million euros in restructuring costs caused its quarterly operating profit to drop 11% to 1.22 billion euros. SAP announced in January that it would restructure 8,000 jobs, retraining staff in AI skills or replacing them through voluntary layoffs, at a cost of two billion euros. Key business functions, including supply chain management and accounting, are managed by the company’s software.
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