Shares of software giant SAP SE (NYSE:SAP) surged 5.95% in Tuesday's trading session, driven by the company's impressive fourth quarter and fiscal year 2024 results along with an upbeat outlook for 2025.

SAP reported a 25% year-over-year increase in cloud revenue to €17.14 billion for the full year 2024, fueled by strong demand for its Cloud ERP Suite which grew 34% at constant currencies. The company's total cloud backlog stood at a staggering €63.29 billion, reflecting a 43% increase (40% at constant currencies) from the previous year.

Encouraged by the robust performance, SAP raised its guidance for 2025. The company now expects cloud revenue to grow 26% to 28% at constant currencies, reaching €21.6 billion to €21.9 billion. Additionally, SAP forecasts non-IFRS operating profit to increase 26% to 30% at constant currencies, ranging from €10.3 billion to €10.6 billion.

SAP's CEO Christian Klein expressed confidence in the company's strong position in data and Business AI, stating, "This gives us additional confidence that we will accelerate revenue growth through 2027." The company also announced organizational changes, including the appointment of Sebastian Steinhaeuser to the Executive Board and the extension of Thomas Saueressig's contract, further bolstering its leadership team.