2023-05-16 12:59:53 ET
SAP ( NYSE: SAP ) shares rose nearly 2% on Tuesday after the European software maker announced that it was boosting its revenue outlook for 2025 and unveiled a new share buyback program.
In a statement, SAP ( SAP ) said it now expects 2025 revenue to be at least €37.5B, including €21.5B from cloud-related revenue. The company also expects non-cloud related gross profit to be approximately €16.3B, while non-IFRS operating profit is forecast to be roughly €11.5B.
SAP ( SAP ) also said it expects "more predictable revenue" to be around 86% of total sales, while free cash flow is forecast to be approximately €7.5B.
"Today's Ambition 2025 update demonstrates SAP's momentum in this new phase of our transformation," said Christian Klein, CEO, in the statement.
"Our strong, resilient cloud growth drives accelerating total revenue and operating profit growth."
In addition, SAP ( SAP ) unveiled a new €5B, or $5.4B share repurchase program, that is slated to start in the second half of the year and be fully executed by the end of 2025.
Last month, SAP ( SAP ) reported mixed first-quarter results and Klein said the company would embrace ChatGPT in some of its products.
More on SAP and its outlook
- SAP: Expecting Double Digits EBIT Growth From FY24 Onwards
- SAP rises 6% after Q1 results, gets set to embrace ChatGPT
- SAP agrees to sell 423M shares of Qualtrics for $7.7B
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SAP gains after it boosts 2025 revenue outlook, unveils $5.4B share buyback