SAP Stock Plunges 3.69% on Disappointing Q2 Earnings

On July 23, 2025, SAP's stock price dropped by 3.69% in pre-market trading, reflecting investor concerns over the company's recent financial performance.

SAP reported its second-quarter financial results, which fell short of analysts' expectations. The company's non-IFRS revenue for the quarter was 9.03 billion euros, missing the analyst consensus of 9.07 billion euros. Similarly, non-IFRS cloud revenue was 5.13 billion euros, below the expected 5.17 billion euros. The combined non-IFRS cloud and software revenue was 7.97 billion euros, slightly below the forecast of 7.99 billion euros.

SAP also provided guidance for the full year, projecting non-IFRS cloud revenue to be between 21.6 billion and 21.9 billion euros, and non-IFRS operating profit to range from 10.3 billion to 10.6 billion euros. These projections, while within a reasonable range, may not have fully addressed investor concerns about the company's growth trajectory and profitability.

The market's reaction to SAP's earnings report suggests that investors are closely monitoring the company's ability to meet its financial targets and maintain its competitive edge in the rapidly evolving technology landscape. The drop in stock price indicates that there may be some skepticism regarding SAP's future performance, particularly in light of the recent underperformance in key revenue categories.