The German software giant, SAP, is poised to announce its Q3 results on Wednesday, with a forecasted 3% Year on Year (YoY) growth in non-IFRS total revenue to €7.73 billion ($8.16 billion). The company also expects an 18% surge in non-IFRS cloud revenue to reach €3.53 billion and a 6% rise in non-IFRS operating profit to €2.19 billion, equating to a 28.4% margin.
These positive projections follow a period of strong growth in SAP’s core cloud business which drove higher revenue in Q2. In response to this success, the company revised its guidance in July, setting a target for non-IFRS operating profit between €8.65 billion and €8.95 billion and cloud revenue between €14 billion and €14.2 billion.
The robust growth of SAP’s cloud business is backed by a strong pipeline and the firm’s strategic focus on Artificial Intelligence (AI). This focus was underscored by the recent appointment of Walter Sun as Global Head of AI, a move aimed at securing a larger market share.
SAP is likely to reiterate its outlook for the fast-growing market during the announcement of its Q3 results. The company’s performance will be closely watched by investors and industry analysts alike, as it provides critical insights into the health of the global software market and the ongoing digital transformation trends.
