SAP SE (NYSE:SAP) raised its fiscal 2025 outlook on Tuesday, projecting a substantial boost in operating profit, fueled by accelerating cloud revenue and its strengthened foothold in business AI and data capabilities.

The enterprise software giant now anticipates operating profit to range between €10.3 billion and €10.6 billion ($10.75 billion–$11.06 billion), marking a 26%–30% increase at constant currencies compared to 2024. This is an upgrade from its previous guidance of €10.2 billion in operating profit, alongside total revenue of over €37.5 billion and cloud revenue surpassing €21.5 billion.

Cloud revenue, a cornerstone of SAP's growth strategy, is forecasted to climb 26%–28%, reaching between €21.6 billion and €21.9 billion in 2025. This growth is underpinned by sustained demand for the company’s flagship Cloud ERP Suite and its RISE with SAP offering, which facilitates the shift to cloud-based enterprise solutions for businesses worldwide.

In the fourth quarter, SAP’s cloud revenue rose 27% to €4.71 billion, with the cloud gross margin improving by 1.3 percentage points to 73.5%. Overall quarterly revenue grew 11% year-over-year to €9.38 billion, and non-IFRS operating profit advanced 24% to €2.44 billion.