By John Meyer, consultant in financial affairs – Eurasia Business News, January 28, 2025. Article No 1405.

Christian Klein, CEO said :

“Q4 was a strong finish to the year, with half of our cloud order entry including AI. Looking at the full year, we exceeded our cloud goals, accelerating cloud revenue and current cloud backlog growth against a much larger base. Total cloud backlog now stands at €63 billion, up 40%. Revenue growth has returned to double-digits. Looking ahead, our strong position in data and Business AI gives us additional confidence that we will accelerate revenue growth through 2027.”

SAP meets or exceeds all financial outlook parameters for FY2024, released today.

The company records a current cloud backlog of €18.1 billion, up 32% and up 29% at constant currencies

Total cloud backlog reaches €63.3 billion, up 43% and up 40% at constant currencies

  • Cloud revenue up 25% and up 26% at constant currencies in FY2024
  • Cloud ERP Suite revenue up 33% and up 34% at constant currencies in FY2024
  • Total revenue up 10% and up 10% at constant currencies in FY2024
  • IFRS operating profit down 20%, non-IFRS operating profit up 25% and up 26% at constant currencies in FY2024
  • 2025 outlook anticipates accelerating cloud revenue growth

SAP has raised its 2025 financial outlook, driven by strong growth in its cloud business. The company now projects non-IFRS operating profit between €10.3 billion and €10.6 billion, reflecting a 26-30% increase from 2024. 

Cloud revenue is expected to grow 26-28%, reaching €21.6-21.9 billion, supported by a 43% increase in total cloud backlog to €63.3 billion. 

This growth aligns with SAP’s ongoing transformation program and focus on AI-driven solutions, including its “RISE with SAP” and “GROW with SAP” initiatives.

SAP plans to achieve its ambitious 2025 targets through a multi-faceted strategy:

Transformation Program: SAP is restructuring operations, cutting 8,000 jobs in 2024 while reinvesting in strategic areas like AI and cloud solutions. This aims to enhance scalability and efficiency.

Cloud Growth: SAP expects cloud revenue to exceed €21.5 billion, driven by S/4HANA migrations and recurring revenue streams.

AI and Sustainability: The company is integrating AI to optimize operations and focusing on sustainable “green ERP” solutions to meet market demands.

Operational Synergies: SAP aims for €0.5 billion in incremental efficiency gains by streamlining resources.

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© Copyright 2025 – Eurasia Business News. Article no. 1408.