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German software maker SAP’s quarterly cloud revenue leaps 25%
Global Banking and Finance Review
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(Reuters) -Europe’s largest software maker SAP reported a 25% jump in its cloud
(Reuters) -Europe’s largest software maker SAP reported a 25% jump in its cloud business and beat analysts’ estimates for total revenue for the second quarter on Monday.
The company’s total revenue rose 10% to 8.29 billion euros ($9.02 billion), edging past analysts’ consensus of 8.25 billion euros, helped by demand for its business planning software.
Cloud revenue of 4.15 billion euros was in line with the median analyst estimate from a consensus posted on the company’s website.
The German firm increased its 2025 adjusted operating profit expectation to 10.2 billion euros from 10 billion euros, reflecting anticipated efficiency gains from its transformation program.
“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,” CEO Christian Klein said in statement.
The company said quarterly operating profit fell 11% to 1.22 billion euros, due to restructuring expenses of 600 million euros.
SAP in January said it would spend 2 billion euros on a restructuring programme involving 8,000 jobs to either retrain employees with AI skills or to replace them through voluntary redundancies.
The company’s software is used to manage key operations ranging from accounting to supply chain management.
($1 = 0.9186 euros)
(Reporting by Ludwig Burger and Gursimran Kaur; Editing by Sriraj Kalluvila)
Cloud revenue refers to the income generated from services delivered over the internet, such as software and applications hosted on cloud platforms.
Operating profit is the profit a company makes from its core business operations, excluding any income derived from non-operational activities.
Adjusted operating profit is the operating profit adjusted for certain one-time expenses or income, providing a clearer view of ongoing profitability.
Business management software helps organizations manage and streamline their operations, including accounting, project management, and resource allocation.
Restructuring expenses are costs incurred when a company reorganizes its operations, often involving layoffs, facility closures, or other significant changes.
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