SAP Reports 13% Revenue Growth Driven by Cloud AI
SAP reported total revenue of €10.27 billion and announced the acquisition of TechWolf to expand its artificial intelligence capabilities.
SAP reported a 13% increase in total revenue to €10.27 billion, fueled by a 26% rise in cloud revenue to €6.668 billion. The company's current cloud backlog grew 28% to reach €24.144 billion, prompting the software corporation to raise its annual expectations for cloud and software revenue toward the upper ends of its previous ranges.
Non-IFRS operating profit rose 18% to €3.030 billion. The company maintained its full-year non-IFRS operating profit outlook between €11.8 billion and €12.2 billion. Chief Executive Christian Klein attributed the acceleration in cloud migration to artificial intelligence.
To expand its AI capabilities, the company agreed to acquire TechWolf, a Belgian workforce technology firm, on October 6. The deal is expected to close in the fourth quarter pending regulatory approval.
