SAP Stock Soars 8.84% on Strong Q1 Earnings

On April 23, 2025, SAP's stock price surged by 8.84% in pre-market trading, marking a significant rise that has caught the attention of investors and analysts alike.

SAP, Europe's largest software maker, reported a strong first-quarter performance, with non-IFRS revenue reaching 90.1 billion euros, slightly below analyst expectations of 90.8 billion euros. The company's non-IFRS cloud revenue stood at 49.9 billion euros, also falling short of the anticipated 50.5 billion euros. Despite these minor misses, SAP maintained its full-year non-IFRS operating profit forecast between 103 billion and 106 billion euros, and its non-IFRS cloud revenue forecast between 216 billion and 219 billion euros.

The company's robust earnings were largely driven by significant cost-cutting measures implemented last year, which resulted in a 60% increase in adjusted EBITDA to 24.6 billion euros. This performance exceeded analyst expectations and led to a substantial rise in the company's profit margin to 27.1%. SAP's customer sales also showed positive momentum, with cloud software driving a 12% increase in overall revenue.

SAP's CEO, Christian Klein, reaffirmed the company's full-year guidance, adjusted for currency fluctuations. However, he noted increased currency risks and economic uncertainties, particularly due to volatile trade policies and global trade tensions. These factors could potentially impact SAP's business, especially given the company's significant presence in the U.S. market.