- SAP’s first-quarter non-IFRS revenue was EU9.01 billion, slightly below the estimate of EU9.08 billion.
- Cloud and software revenue reported at EU7.94 billion, just under the estimated EU7.98 billion.
- First-quarter cloud revenue was EU4.99 billion, close to the expected EU5.05 billion.
- Cloud revenue growth in constant currencies was 26%, under the 27.9% estimate.
- Non-IFRS gross profit matched the estimate at EU6.63 billion.
- Operating profit exceeded expectations at EU2.46 billion, compared to the estimate of EU2.24 billion.
- Profit after tax came in at EU1.80 billion, beating the expected EU1.37 billion.
- Non-IFRS EPS was recorded at EU1.44, above the estimated EU1.30.
- SAP reported a strong free cash flow of EU3.58 billion, surpassing the forecast of EU2.56 billion.
- The company anticipates a slight deceleration in cloud backlog growth at constant currencies in 2025.
- Analyst recommendations include 26 buys, 5 holds, and 3 sells for SAP.
SAP on Smartkarma
In the realm of investment research on Smartkarma, analyst Gregory Ramirez has shared insights on SAP SE (SAP GR) that paint a positive picture for the company. In a report titled “Entering the Lakehouse,” Ramirez discusses SAP’s partnership with Databricks to launch the SAP Business Data Cloud. This new unified SaaS solution aims to bridge the gap between structured and unstructured data, leveraging Databricks’ advanced AI and machine learning capabilities. The move is seen as a strategic step by SAP to address data silos and enhance AI-driven processes across various business functions.
Continuing on the positive sentiment, Ramirez’s report “A Lot of Efficiency Ahead” highlights SAP’s robust FY 2025 guidance, showcasing significant growth projections in cloud revenues and profit. With a strong focus on AI capabilities and operational efficiency, SAP is poised for long-term success. The company’s ‘land and expand’ strategy, combined with advancements in AI technology, positions it well for future growth and success in the competitive market landscape.
A look at SAP Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have assigned SAP SE a combination of Smart Scores to evaluate the company’s long-term outlook. SAP, a multinational software company known for its development of business software, has received varying scores across different factors. While the company scored moderately on Value and Dividend, it showed higher resilience and growth potential. The momentum score also indicates a positive outlook for SAP in the future.
SAP’s overall outlook, as indicated by the Smart Scores, paints a picture of a company with good growth prospects and resilience. With a focus on developing business software and providing training services worldwide, SAP seems poised for future success based on the analysis provided by Smartkarma. Investors may find SAP an interesting prospect for long-term investment considering its strengths in growth, resilience, and momentum in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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