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SAP raises 2025 outlook, launches €5 billion share buyback

SAP raises 2025 outlook, launches €5 billion share buyback

FILE PHOTO: The logo of German software group SAP is pictured at the headquarters of SAP (Schweiz) AG in Regensdorf, Switzerland January 22, 2021. REUTERS/Arnd Wiegmann

17 May 2023 12:05AM (Updated: 17 May 2023 03:57AM)

BERLIN: SAP on Tuesday (May 16) raised its 2025 total revenue outlook for continuing operations by around 4 billion euros (US$4.40 billion) and announced a share buyback of up to €5 billion, boosted by strong demand for its cloud business.

For 2025, the company now expects revenue of more than €37.5 billion with cloud revenue of more than €21.5 billion. It now sees non-IFRS operating profit of around €11.5 billion.

"Our strong, resilient cloud growth drives accelerating total revenue and operating profit growth," Chief Executive Christian Klein said in a statement.

The business software maker also launched a share repurchase program of up to €5 billion scheduled to start in the second half of 2023, citing strong business momentum and anticipated divestiture of the Qualtrics business, expected in the second half of the year.

Last month, SAP reported first-quarter revenue above analysts' expectations, backed by 24 per cent growth in its cloud business revenue.

Source: Reuters

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