SAP Stock Soars 8.68% on 60% Profit Jump

Generated by AI AgentAinvest Movers Radar
Wednesday, Apr 23, 2025 4:25 am ET1min read

On April 23, 2025, SAP's stock price surged by 8.68% in pre-market trading, marking a significant rise that caught the attention of investors and analysts alike.

SAP, Europe's largest software maker, reported a 60% year-on-year profit jump in the first quarter of 2025, driven by cost savings from large-scale layoffs and strong cloud software sales. The company's adjusted earnings per share of €1.44 exceeded analyst estimates of €1.40, while revenue for the quarter reached €9.01 billion, up 12% year-over-year. This performance was largely attributed to the company's successful pivot to cloud services, which boosted margins and overall profitability.

Despite the positive earnings report, SAP's management acknowledged the increasing risks associated with currency fluctuations and global trade tensions. The company's CEO, Christian Klein, confirmed the full-year business outlook but noted the potential impact of a weaker dollar and unpredictable trade policies on its largest market, the United States. The company's resilience in the face of these challenges was praised by analysts, who described the first-quarter results as a "masterclass in resilience."

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