SAP announced on Monday that it has raised its 2025 operating profit ambition following the successful implementation of its artificial intelligence (AI)-focused restructuring program. SAP CEO Christian Klein stated during the quarterly earnings call that the company's transformation program was being executed with discipline and an increase in the program's scope. As a result, SAP expects a bottom-line upgrade of approximately €200 million ($217 million) for its Ambition 2025. The new forecast for 2025 non-International Financial Reporting Standards (IFRS) operating profit is €10. 2 billion ($11. 1 billion), up from the previous forecast of €10 billion ($10. 9 billion), according to the earnings release. The restructuring program, announced in January, aims to enhance SAP's focus on Business AI and strategic growth areas while optimizing operational efficiency. Initially, 8, 000 employees were expected to be retrained or voluntarily leave the company. However, the restructuring is now projected to impact between 9, 000 and 10, 000 employees as SAP aligns its skillsets and resources for future requirements.

The company anticipates that its headcount at the end of 2024 will be similar to that at the end of 2023 as it reinvests in key growth areas. SAP expects to complete the restructuring program in early 2025. In addition, the company made advancements in AI during the second quarter, including introducing AI features to its supply chain solutions, expanding its partnership with IBM to include generative AI capabilities, and extending its collaboration with Amazon Web Services (AWS) to offer cloud enterprise resource planning (ERP) experiences and generative AI solutions. Klein also highlighted positive feedback regarding SAP's products, attributing it to the company's Business AI offerings. He emphasized that SAP is perceived as a major AI player due to its ability to embed the technology into customers' operating systems. The company's AI strategy played a vital role in all deals closed during the quarter. Furthermore, SAP reported a 25% YoY growth in cloud revenue during the quarter, surpassing its total revenue growth of 10%. "Despite the volatile software industry environment, our growth momentum remained strong in Q2, " stated Klein. "More customers are transitioning to the cloud, and SAP's portfolio is increasingly attractive thanks to its Business AI capabilities. "