For its recently ended second quarter, the software giant reported growth in its “current cloud backlog” revenue, including sales of its flagship ERP Suite of applications and the Business Data Cloud that launched in February.
Software giant SAP reported strong revenue and cloud sales growth in its recently concluded second quarter despite global trade uncertainty and “elongated sales cycles” in the U.S. public and industrial manufacturing sectors.
Despite the economic headwinds SAP maintained its previously given outlook for the entirety of 2025 including a forecast of 26 to 28 percent cloud revenue growth to €21.6 billion to €21.9 billion (U.S.$25.38 billion to U.S.$25.73 billion) for the year.
“Uncertainty in global markets from earlier this year remains, but SAP has an excellent pipeline for [the second half of 2025] in almost all markets and regions,” SAP CEO Christian Klein said during an earnings call Tuesday afternoon.
[Related: SAP Sets Databricks Alliance, Launches Business Data Cloud]
Klein said that when closing sales deals, SAP is “seeing extended approval workflows on the customer side, for example, in the U.S. public sector and among manufacturers affected by tariffs.” But the CEO said that “SAP is very well prepared for the second half of 2025 and for the coming year.”
Klein’s statements were echoed by CFO Dominique Assam on the call, who said SAP executives remain “mindful of the broader [economic] environment, including in geopolitical developments, notably the ongoing uncertainty about trade policy that has contributed to elongated sales cycles in certain sectors such as [the] U.S. public sector and industrial manufacturing.”
Klein emphasized that while it’s taking longer to close some sales deals, ultimately SAP wins those deals.
“No deal with an elongated sales cycle is lost,” he said. “The pipeline is there and we are not losing these deals. We just need to be more diligent in managing the closing plans and be even closer to the customers [from which] we are getting these deals.”
SAP reported that in the second quarter the “current cloud backlog,” the contractually committed cloud revenue expected to be recognized over the next 12 months, grew 28 percent in constant currencies to €18.5 billion (U.S.$21.71 billion). Cloud revenue in Q2 also increased 28 percent in constant currencies to €5.13 billion (U.S.$6.02 billion), driven by €4.42 billion (U.S.$5.19 billion) in sales of the SAP Cloud ERP Suite (up 34 percent year over year in constant currencies).
Klein said that many of the sales deals that closed in the second quarter, ended June 30, included SAP’s recently launched Business Data Cloud that incorporates the Databricks Data Intelligence Platform through a strategic alliance between the two companies.
“The pipeline for Business Data Cloud is skyrocketing,” Klein said.
For the second quarter overall SAP reported revenue of €9.03 billion (U.S.$10.60 billion), up 12 percent year over year in constant currencies. Profit for the quarter was €1.75 billion (U.S.$2.05 billion), up 91 percent year over in constant currencies.
