SAP Stock Soars 2.75% on Cloud Revenue Surge

SAP's stock price surged to its highest level since February 2025 today, with an intraday gain of 2.75%.

SAP's strategic shift to a subscription, cloud-based business model has been a significant driver of its growth in 2025. This transition has allowed the company to outperform many of its software peers, positioning itself as a leader in the cloud services sector.

SAP's financial performance in the first quarter of 2025 was particularly strong. The company reported €9.01 billion in revenue, marking a 12% year-over-year increase. Cloud revenue saw an impressive 27% growth, comprising over 40% of total revenue. This robust financial performance was further highlighted by a 60% year-over-year surge in operating profit, demonstrating SAP's ability to generate substantial earnings from its cloud-based offerings.

SAP's cloud business has been a standout performer, with a 27% increase in revenue in the first quarter of 2025. This growth surpassed that of competitive giants, solidifying SAP's position as a leader in the cloud ERP Suite market, which saw a 34% growth in revenue.

Despite its successes, SAP faced a significant security challenge with the identification of a critical vulnerability in SAP NetWeaver Visual Composer, designated as CVE-2025-31324. This vulnerability posed substantial security risks, leading to confirmed compromises in multiple organizations. SAP responded promptly by releasing an emergency patch on April 24, 2025, to address the issue and mitigate potential risks.