Jan 28 (Reuters) - SAP, Europe's largest

software maker, said on Tuesday it was more optimistic about its

financial results this year due to accelerating growth in

revenue from cloud computing.

The group said it expects operating profit in 2025, on a

constant currency basis, to be between 10.3 billion euros and

10.6 billion euros ($10.75 billion - $11.06 billion).

SAP previously said its 2025 "ambition" was for operating

profit of about 10.2 billion euros, total revenue of more than

37.5 billion euros and more than 21.5 billion euros in cloud

revenue.

The company said it now expects cloud revenues to be

slightly higher in a range of 21.6 billion euros to 21.9 billion

euros for the year.

Fourth-quarter cloud revenue grew 27%, adjusted for currency

effects, to 4.71 billion euros, beating an analyst consensus of

4.67 billion euros posted on the company's website.

The cloud and software revenue in the quarter grew 11%

adjusted for currency effects, to 8.27 billion euros, beating an

analyst consensus of 8 billion euros.

Quarterly operating income, adjusted for special items,

gained 24% to 2.44 billion euros in the fourth quarter, above an

analyst consensus of 2.25 billion euros.

The software maker has previously said up to 10,000 jobs out

of its 100,000 total headcount were under review as it prepares

for the era of AI, projecting restructuring costs of around 3

billion euros.

On Monday, SAP shares dropped alongside other European

technology stocks after the popularity of a Chinese discount

artificial-intelligence model wobbled investors' faith in the

profitability of AI and related investments.

($1 = 0.9585 euros)

(Reporting by Ludwig Burger and Harshita Meenaktshi; Editing by

Savio D'Souza and Mrigank Dhaniwala)