SAP SE shares fell roughly 4% on Wednesday after Europe’s largest software maker reported mixed second-quarter results and left its full-year guidance unchanged, despite strong growth in cloud subscriptions. Currency headwinds and uncertainty over U.S.–China trade tariffs prompted some customers to slow spending, Chief Executive Officer Christian Klein said in interviews. Total revenue for the quarter rose 9% year on year to €9.03 billion, missing some analyst forecasts, while cloud revenue increased 24% to €5.13 billion. Current cloud backlog, a measure of contracted future sales, reached €18.1 billion. IFRS operating profit climbed to €2.46 billion, lifting the margin to 27.2%, and net income nearly doubled to €1.75 billion, helped by restructuring savings. The Walldorf-based company maintained its 2025 outlook for cloud revenue of €21.6 billion to €21.9 billion and non-IFRS operating profit of €10.3 billion to €10.6 billion. However, management acknowledged lengthening approval cycles among manufacturers and U.S. public-sector customers affected by the 145% tariff on Chinese goods that took effect in April. Separately, SAP is weighing a reduction of about 1%–2% of its global workforce while adding roles focused on artificial-intelligence and data capabilities, according to people familiar with internal discussions. The move would follow last year’s broader restructuring aimed at streamlining operations and accelerating investment in emerging technologies. Analysts reacted cautiously; Piper Sandler cut its price target to €345 from €355 and TD Cowen lowered its target to €295 from €310, citing macro-economic risks and softer top-line momentum. Even after Wednesday’s decline, SAP’s American depositary receipts remain up about 24% so far this year.