Knows on Wednesday published A jump of 58% year -on -year for the operational benefit of the first quarter in constant currency, which also confirms their perspective for cloud income for a whole year.
SAP’s operating profit reached € 2.5 billion ($ 2.9 billion) in the first quarter, compared to analysts expectations of about € 2.2 billion, according to LSEG data.
Shares of the company tentatively closed 10.6% higher Wednesday.
The German software giant, who Last month he beat Novo Nordisk to become the most valuable public company in Europe, said that revenue had increased by 11% to 9 billion euros, with its cloud delay 29% year-on-year. The profit per action increased by 79% per annum to 1.44 euros.
He also said that he continues to wait for the cloud income for a whole year to fall between 21.6 billion euros to 21.9 billion euros in constant currency this year.
Sap « more relevant than ever » in the middle of the rates
Speaking on Wednesday at CNBC Squawk Box Europe, SAP CEO, Christian Klein, addressed the uncertainty that new North -American rates created for companies around the world, including SAP’s customer base.
During a visit to the United States last week, Klein said he spoke to clients concerned about the impact of the wide duties of the President of the United States, Donald Trump, who became known to the imports.
« What they tell me is: « Your software is now more relevant than ever, » he said to CNBC, adding that he helped companies to do business in more than 130 countries. The firm’s software provides customers to keep their resistant supply chains, he said, helping them to determine which of their suppliers could still provide competitive costs.
« This gives me a lot of confidence and the company at the moment when it is developing throughout the year and that is why we also confirmed our orientation, » said Klein.
Sap updated Its perspectives throughout the year of 2025 in January, after the adjusted operational benefit increased by 25% to 8.15 billion euros during the year 2024. The company completed a restructuring program to the entire company in the first quarter of this year.
On Wednesday, Klein told CNBC that the growth of the SAP cloud unit gave the company « a lot of prediction ».
« When I talk about predictability, it’s not only a buzzer word, » he said. « Look at our total income, which consists of 86% of recurring revenue. This is predicted, that is, resilience. »
« It is very difficult to predict what will happen after the 90 -day break In most of the rates (North -Reciplocked Americans) and, of course, there are several stages, he « added ». But we are still optimistic considering what we see in the market (and) what our customers feel. «
Resilience
In reacting to the update of SAP results on Wednesday, analysts praised the company’s resistance in the current macroeconomic environment. In a note for the customers on Wednesday, Deutsche Bank analysts labeled the results of the first quarter of SAP as « Masterclass in Resilience ».
Noting that they hoped that the company will launch any fall that could affect the world economy, the German provider’s analysts presented « the strong discipline of costs and the management of additional cost levers in the event of a macro deterioration that would allow it to protect the profitability.
« In general, with the warnings that begin to materialize in the technological field and the view of the actions of SAP are -22% of the peak, this is a strong set of results and illustrates the resilience and defense of SAP’s results trajectory, » said Analyst Jpmorgan Toby Ogg.
TD Cowen analysts echoed the positive feeling, increasing their price goal to $ 320 from $ 315 per action.
« We remain constructive in the SAP capacity to meteorize the macro chopped conditions and that the model continues to see the acceleration of growth with a wide expansion of the margin, » said Derrick Wood from the Investment Bank.
Pascal Spano, the German Bank, Metzler, also suggested that the latest results are indicative of the company’s ability and the management of overcoming in a fall.
« Cloud revenue and the current cloud decline continue to be a good boost, posting a solid demand for all verticals despite current uncertainties, » Spano told customers in a note after the results were published.
– Ganeh Rao of CNBC and Abby Ryanto contributed to this report.
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