SAP: Unleashing Global Cloud Power with Alibaba Alliance & AI Push!

SAP’s Q2 2025 performance highlights both positive progress and certain challenges within the company’s financial landscape. The quarter was marked by robust cloud-related growth and operational efficiency, though macroeconomic uncertainties persist, notably in sectors like the U.S. public sector and manufacturing. On the positive side, SAP saw a 28% increase in cloud revenue, driven primarily by its Cloud ERP Suite, which remains a pivotal part of SAP’s strategy, showing consistent growth for over 14 quarters at a rate exceeding 30%. Total revenue grew by 12%, and cloud backlog also rose by 28%, despite facing currency headwinds. The operating profit saw a significant 35% increase, attributed to the company’s transformation program and enhanced productivity through Business AI adoption.