SAP reported a stellar performance in Q1, with operating profit jumping 58% year-on-year in constant currency. The company achieved an operating profit of 2.5 billion euros ($2.9 billion), exceeding analysts’ expectations. Revenue grew by 11%, reaching 9 billion euros, driven largely by its cloud services.<\/p>\n\n\n\n
Shares of SAP rose 10.6% on Wednesday following the strong results, with the company\u2019s cloud backlog growing 29% year-on-year. Earnings per share surged 79%, reaching 1.44 euros.<\/p>\n\n\n\n
In a conversation with CNBC\u2019s \u201cSquawk Box Europe,\u201d SAP CEO Christian Klein addressed the challenges businesses are facing due to new U.S. tariffs. Klein highlighted that SAP\u2019s software is more essential than ever as companies navigate global supply chain disruptions caused by trade tensions.<\/p>\n\n\n\n
\u201cOur software is now more relevant than ever,\u201d Klein explained, noting that SAP\u2019s solutions help companies maintain resilient supply chains and manage costs amidst geopolitical uncertainty. SAP operates in over 130 countries, providing critical tools to businesses dealing with tariff impacts.<\/p>\n\n\n\n
Despite the uncertainty surrounding trade policies, SAP has reaffirmed its full-year forecast, with cloud revenue expected to be between 21.6 and 21.9 billion euros in constant currency. The company\u2019s robust growth in cloud services, which accounts for 86% of total revenue, offers strong predictability for future earnings.<\/p>\n\n\n\n
Klein remained confident in SAP\u2019s outlook, emphasizing the company\u2019s resilient business model. \u201cWe have strong recurring revenue, which makes us confident in our ability to meet our goals for the year,\u201d Klein said.<\/p>\n\n\n\n
Following SAP\u2019s impressive Q1 results, analysts expressed confidence in the company\u2019s ability to navigate economic headwinds. Deutsche Bank analysts called the results a \u201cmasterclass in resilience,\u201d noting SAP\u2019s ability to manage costs and maintain profitability during global uncertainty.<\/p>\n\n\n\n
\u201cSAP\u2019s strong cost discipline and flexibility allow it to weather potential downturns,\u201d said JPMorgan analyst Toby Ogg. Ogg highlighted that SAP\u2019s consistent growth and defensive earnings position it well against macroeconomic challenges.<\/p>\n\n\n\n
TD Cowen analysts also raised their price target for SAP, citing the company\u2019s solid growth and margin expansion prospects.<\/p>\n\n\n\n
SAP\u2019s cloud business remains the backbone of its growth, with strong demand for its cloud solutions across various industries. Klein highlighted that the cloud backlog continues to show good momentum, driven by demand for digital solutions in the face of global uncertainty.<\/p>\n\n\n\n
\u201cThe momentum in cloud revenue and the growth in our cloud backlog give us confidence in SAP\u2019s long-term prospects,\u201d Klein said, emphasizing the company\u2019s focus on delivering reliable, recurring revenue.<\/p>\n\n\n\n
As the global economy faces heightened trade tensions, SAP\u2019s cloud-based solutions position the company well to continue delivering growth and value to its customers.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
SAP reported a stellar performance in Q1, with operating profit jumping 58% year-on-year in constant currency. The company achieved an operating profit of 2.5 billion euros ($2.9 billion), exceeding analysts’ expectations. Revenue grew by 11%, reaching 9 billion euros, driven largely by its cloud services. Shares of SAP rose 10.6% on Wednesday following the strong […]<\/p>\n","protected":false},"author":10772,"featured_media":10004,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[1415,1414,706,1416,1412,1407,1310,1419,1417,1413,1173,1418,1410,1408,583,1409,1420,1411,1078],"class_list":{"0":"post-10003","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-christian-klein","10":"tag-cloud-growth","11":"tag-cloud-revenue","12":"tag-deutsche-bank","13":"tag-earnings","14":"tag-global-economy","15":"tag-jpmorgan","16":"tag-market-resilience","17":"tag-operating-profit","18":"tag-president-trump","19":"tag-q1-results","20":"tag-recurring-revenue","21":"tag-sap","22":"tag-supply-chain","23":"tag-tariff-uncertainty","24":"tag-td-cowen","25":"tag-technology-sector","26":"tag-u-s-tariffs"},"_links":{"self":[{"href":"https:\/\/globalgazette.us\/index.php?rest_route=\/wp\/v2\/posts\/10003","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/globalgazette.us\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/globalgazette.us\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/globalgazette.us\/index.php?rest_route=\/wp\/v2\/users\/10772"}],"replies":[{"embeddable":true,"href":"https:\/\/globalgazette.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10003"}],"version-history":[{"count":1,"href":"https:\/\/globalgazette.us\/index.php?rest_route=\/wp\/v2\/posts\/10003\/revisions"}],"predecessor-version":[{"id":10005,"href":"https:\/\/globalgazette.us\/index.php?rest_route=\/wp\/v2\/posts\/10003\/revisions\/10005"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/globalgazette.us\/index.php?rest_route=\/wp\/v2\/media\/10004"}],"wp:attachment":[{"href":"https:\/\/globalgazette.us\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10003"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/globalgazette.us\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10003"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/globalgazette.us\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10003"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}