SAP SE, Europe’s largest software company specializing in enterprise application software, reported €4.71 billion (around US$4.9 billion) in fourth-quarter cloud revenue, a 27% increase from the previous year, slightly surpassing analyst expectations.

The company credited its AI-enhanced cloud offerings for driving growth as businesses transition from on-site servers to cloud infrastructure.

SAP raised its 2025 cloud revenue forecast to €21.6–€21.9 billion (around US$23.76–$24.09 billion) and noted a 29% increase in its cloud backlog, reaching €18.1 billion (around US$19.91 billion).

CEO Christian Klein emphasized AI’s role in the company’s strategy, with half of its cloud orders now incorporating AI features.

SAP shares rose 61% last year, cementing its position as Europe’s most valuable tech company, ahead of Dutch semiconductor giant ASML Holding NV.