SAP SE reported a strong performance for the fourth quarter of 2024, surpassing its financial outlook for the year. The company achieved a cloud backlog of €63.3 billion, marking a 43% increase, and total revenue rose by 25%. In Q4, SAP's revenue reached €9.38 billion, exceeding analyst estimates of €9.14 billion, while cloud revenue was €4.71 billion, above the expected €4.68 billion. Adjusted EBIT for the quarter stood at €2.44 billion, surpassing the forecast of €2.25 billion. SAP also raised its outlook for 2025, projecting non-IFRS operating profit to be between €10.3 billion and €10.6 billion, and cloud revenue to range from €21.6 billion to €21.9 billion. The company's growth was driven by a 27% year-over-year increase in cloud revenue, fueled by demand for AI-powered solutions, with approximately 50% of Q4 cloud order entries including AI use cases. SAP anticipates further growth in its cloud business for 2025, with plans to invest over €40 billion in R&D and cloud operations in Europe. The company also announced the appointment of new executives and aims to simplify its strategy moving forward.