BERLIN, GERMANY – SAP, a leading software company based in Germany, reported an impressive 58% increase in first-quarter operating profit, surpassing analysts’ expectations. The company’s operating profit reached 2.5 billion euros in the first quarter, with revenue jumping 11% to 9 billion euros. This growth was driven by a 29% increase in its cloud backlog and a significant rise in earnings per share.
Shares of SAP surged by 9.3% following the positive earnings report, highlighting investor confidence in the company’s performance. The CEO of SAP, Christian Klein, expressed satisfaction with the results, emphasizing the resilience of the company’s business model in challenging times. Klein credited the success to the company’s AI-powered portfolio, which helps businesses navigate disruptions in the supply chain and drive efficiencies worldwide.
SAP also confirmed its outlook for full-year cloud revenues, expecting them to fall within the range of 21.6 billion euros to 21.9 billion euros for the year. The company had previously upgraded its full-year outlook for 2025 in January, following a strong performance in 2024. SAP completed a restructuring program in the first quarter of the year to streamline operations and enhance efficiency.
Analysts applauded SAP’s performance, labeling the first-quarter results as a “masterclass in resilience.” Deutsche Bank analysts praised the company’s strong cost discipline and ability to protect profitability in the face of economic challenges. Other analysts from JPMorgan and TD Cowen echoed similar sentiments, expressing confidence in SAP’s ability to navigate uncertain economic conditions and drive growth.
Looking ahead, SAP’s focus remains on driving growth and expanding its market presence across different industries. The company’s consistent performance and ability to outperform expectations highlight its position as a leader in the software industry. Investors and analysts alike are optimistic about SAP’s future prospects and its potential for continued success in the market.