Despite global economic uncertainties, SAP anticipates continued expansion in its cloud business through 2025. The software giant reported strong performance in its second quarter, particularly in cloud sales and contractually committed revenue. This includes growth in its flagship ERP Suite and the newly launched Business Data Cloud, introduced in February. SAP’s financial results for the second quarter reflect resilience amid trade uncertainties and extended sales cycles in key sectors such as the U.S. public sector and industrial manufacturing. The company has reaffirmed its outlook for 2025, projecting cloud revenue growth of 26 to 28 percent, reaching between €21.6 billion and €21.9 billion (approximately $25.38 billion to $25.73 billion). SAP CEO Christian Klein expressed confidence in the company’s pipeline, noting that while sales cycles have lengthened, deals are still being secured. CFO Dominique Assam acknowledged the broader economic challenges, particularly in geopolitical developments and trade policy uncertainty, which have contributed to slower deal closures in certain sectors. However, Klein emphasized that SAP is well-positioned for the remainder of 2025 and beyond. The company reported a 28 percent increase in its “current cloud backlog”—the revenue expected to be recognized over the next 12 months—in constant currencies, reaching €18.5 billion (approximately $21.71 billion). Cloud revenue for the quarter rose by 28 percent in constant currencies to €5.13 billion (approximately $6.02 billion), driven primarily by sales of the SAP Cloud ERP Suite, which grew by 34 percent year over year in constant currencies. Klein highlighted the strong demand for the Business Data Cloud, a product developed in partnership with Databricks, noting that the pipeline for this offering is growing rapidly. SAP’s overall revenue for the second quarter reached €9.03 billion (approximately $10.60 billion), representing a 12 percent increase year over year in constant currencies. Profit for the period was €1.75 billion (approximately $2.05 billion), a 91 percent increase compared to the previous year in constant currencies.
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SAP Sees Continued Cloud Growth Through 2025 Despite Economic Uncertainties
SAP Sees Continued Cloud Sales Growth Through 2025 Despite Economic Uncertainties n nFor its recently ended second quarter, the software giant reported growth in its “current cloud backlog” revenue, including sales of its flagship ERP Suite of applications and the Business Data Cloud that launched in February. n nSoftware giant SAP reported strong revenue and cloud sales growth in its recently concluded second quarter despite global trade uncertainty and “elongated sales cycles” in the U.S. public and industrial manufacturing sectors. n nDespite the economic headwinds SAP maintained its previously given outlook for the entirety of 2025 including a forecast of 26 to 28 percent cloud revenue growth to €21.6 billion to €21.9 billion (U.S.$25.38 billion to U.S.$25.73 billion) for the year. n n“Uncertainty in global markets from earlier this year remains, but SAP has an excellent pipeline for [the second half of 2025] in almost all markets and regions,” SAP CEO Christian Klein said during an earnings call Tuesday afternoon. n n[Related: SAP Sets Databricks Alliance, Launches Business Data Cloud] n nKlein said that when closing sales deals, SAP is “seeing extended approval workflows on the customer side, for example, in the U.S. public sector and among manufacturers affected by tariffs.” But the CEO said that “SAP is very well prepared for the second half of 2025 and for the coming year.” n nKlein’s statements were echoed by CFO Dominique Assam on the call, who said SAP executives remain “mindful of the broader [economic] environment, including in geopolitical developments, notably the ongoing uncertainty about trade policy that has contributed to elongated sales cycles in certain sectors such as [the] U.S. public sector and industrial manufacturing.” n nKlein emphasized that while it’s taking longer to close some sales deals, ultimately SAP wins those deals. n n“No deal with an elongated sales cycle is lost,” he said. “The pipeline is there and we are not losing these deals. We just need to be more diligent in managing the closing plans and be even closer to the customers [from which] we are getting these deals.” n nSAP reported that in the second quarter the “current cloud backlog,” the contractually committed cloud revenue expected to be recognized over the next 12 months, grew 28 percent in constant currencies to €18.5 billion (U.S.$21.71 billion). Cloud revenue in Q2 also increased 28 percent in constant currencies to €5.13 billion (U.S.$6.02 billion), driven by €4.42 billion (U.S.$5.19 billion) in sales of the SAP Cloud ERP Suite (up 34 percent year over year in constant currencies). n nKlein said that many of the sales deals that closed in the second quarter, ended June 30, included SAP’s recently launched Business Data Cloud that incorporates the Databricks Data Intelligence Platform through a strategic alliance between the two companies. n n“The pipeline for Business Data Cloud is skyrocketing,” Klein said. n nFor the second quarter overall SAP reported revenue of €9.03 billion (U.S.$10.60 billion), up 12 percent year over year in constant currencies. Profit for the quarter was €1.75 billion (U.S.$2.05 billion), up 91 percent year over in constant currencies.