SAP boosts profit to 3.545 billion, driven by cloud business

SAP, the German business software company, boosted its first-half profits thanks to the growth of its cloud business and reaffirmed its annual guidance after expressing "cautious optimism" for the second half due to economic uncertainty caused by tariffs and geopolitical tensions.

SAP, which has emerged in recent months as Europe's largest company by market capitalization, posted net profit of €3.545 billion in the first half of 2025, well above the €94 million it posted the previous year, when its results were impacted by restructuring costs after announcing 8,000 job cuts, more than 7% of its total workforce.

The company recorded €2.873 billion in restructuring costs in the first half of 2024, compared to just €18 million in the same period this year.

On the revenue side, SAP posted revenue of 18.04 billion through June, up 10.5%. The cloud products and services business, which is benefiting from the strength of the artificial intelligence market, grew 25% to 10.124 billion.

Between April and June, the business software giant earned €1.749 billion, 91% more than in 2024, after increasing revenue by 9% to €9.027 billion.

The cloud business was SAP's main driver between April and June, with sales increasing by 24% to $5.13 billion.

"We have delivered another quarter of exceptional results," said SAP CEO Christian Klein.

Despite the strong performance during the period, the German company's chief financial officer, Dominik Asam, has provided a veneer of realism to expectations for the remainder of 2025, noting that SAP remains "cautiously optimistic" in light of the geopolitical situation and the trade war.

The software group, which maintains its annual guidance, expects adjusted operating profit of between €10.3 billion and €10.6 billion.

Additionally, it forecasts cloud revenue of between $21.6 billion and $21.9 billion, up 26% to 28% at constant exchange rates, and free cash flow of around $8 billion.

SAP fell 4.1% on the stock market today, although it has appreciated more than 26% in value in the last year, with a market capitalization of around 305 billion euros.