"SAP disappointed investors today after reporting full-year cloud revenue at the bottom end of its guidance range, with execs saying customers in manufacturing and the public sector are taking longer to sign contracts. The European software giant now expects sales to be near the floor of its €21.6-21.9 billion ($25.2-25.5 billion) forecast. Shares were down 2 percent at the time of writing. SAP generated €9.1 billion in global revenue for its calendar Q3, up 7 percent year-on-year."
"SAP CFO Dominik Asam said the company's cloud revenue outlook for fiscal 2025 would now be "toward its lower end [of guidance] due to delayed bookings in the first half of the year, as already highlighted in July." "We have seen this dynamic of back-end loaded bookings again in Q3, especially in sectors such as industrial manufacturing and public sector," he said."
Full-year cloud revenue is now expected near the bottom of the €21.6–21.9 billion forecast due to delayed bookings and longer contract signings in manufacturing and the public sector. Global revenue for calendar Q3 reached €9.1 billion, up 7% year-on-year, while cloud revenue rose 22% to €5.29 billion, slightly below analyst projections of €5.33 billion. Operating profit increased 12% to €2.49 billion. Back-end loaded bookings were observed again in Q3, particularly in industrial manufacturing and public sector segments. ERP remained the primary growth driver, delivering 31% of Q3 growth and representing 87% of cloud revenues.
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