(Reuters) -German software maker SAP on Tuesday reported an adjusted operating profit of 2.5 billion euros ($2.86 billion) for the first quarter of the year that came in above analysts’ estimates.
Analysts had expected 2.22 billion euros in quarterly operating profit adjusted for special items after a result of 1.53 billion euros a year earlier, according to a company-provided consensus.
In January, the group forecast operating profit in 2025, on a constant currency basis, to be between 10.3 billion euros and 10.6 billion euros.
SAP is Europe’s largest software maker, providing systems used by companies for finance, sales, supply chain and other functions.
A boom in artificial intelligence (AI) is spurring demand for SAP’s cloud-based offering and optimism around further growth has led to the group’s shares roughly doubling in value over the past two years.
SAP continues to expects cloud revenues in a range of 21.6 billion euros to 21.9 billion euros for the year, it said in a statement.
The group has previously said up to 10,000 jobs out of its 100,000 total headcount were under review as it prepares for the era of AI, projecting restructuring costs of around 3 billion euros.
($1 = 0.8757 euros)
(Reporting by Rishabh Jaiswal, Writing by Rachel More; Editing by Ludwig Burger and Shailesh Kuber)
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