SAP announced a substantial surge in cloud bookings, up 30%, driven by robust demand for its artificial intelligence features. The German software giant's current cloud backlog reached a record €77 billion. This performance exceeded expectations, positioning the company for accelerating revenue growth through 2027. Business AI is now a main driver for growth.

This growth in cloud bookings is a key indicator of SAP's strategic shift toward cloud-based services. The company's cloud revenue for 2025 rose to €21.02 billion. Investors will be watching closely as SAP continues to transition its customer base. The expansion of predictable revenue, from subscriptions and support contracts, is also a positive sign.

SAP's focus on AI integration within its offerings is clearly resonating with customers. The company's share of predictable revenue expanded. SAP also authorized a new share repurchase program of up to €10 billion. For 2026, SAP projects continued growth in cloud revenue, and non-IFRS operating profit.

Looking ahead, SAP anticipates continued strong performance, with projections for significant growth in cloud revenue and operating profit in 2026. The company's expansion into AI-driven solutions is a key factor. Investors should monitor how the company navigates the ongoing Teradata litigation, which could impact future earnings.