- SAP’s third-quarter non-IFRS revenue came in at EU9.08 billion, aligning closely with the estimate of EU9.09 billion.
- Non-IFRS cloud and software revenue reached EU8.02 billion, just below the EU8.06 billion expected.
- Non-IFRS cloud revenue was EU5.29 billion, slightly below the estimate of EU5.33 billion.
- Non-IFRS cloud revenue grew by 27% in constant currencies, surpassing the anticipated growth of 24%.
- Non-IFRS gross profit stood at EU6.70 billion, close to the estimate of EU6.72 billion.
- Non-IFRS operating profit surpassed estimates, hitting EU2.57 billion against a projection of EU2.55 billion.
- Profit after tax significantly exceeded expectations, reaching EU2.05 billion compared to the estimated EU1.55 billion.
- Non-IFRS EPS was reported at EU1.59, above the estimate of EU1.49.
- Free cash flow showed strong performance at EU1.27 billion, decisively beating the estimate of EU851.7 million.
- Market analyst recommendations include 27 buys, 2 holds, and 3 sells.
SAP on Smartkarma
Analyst coverage of SAP on Smartkarma reveals some valuable insights into the company’s recent developments. Gregory Ramirez, in the report “Agentification of the Business Suite Accelerates,” highlights SAP’s unveiling of a new Business Suite integrated with AI across various functions. The introduction of the Joule AI assistant and BDC Connect demonstrates a push towards embedding AI into business processes for revenue growth. Additional applications like Supply Chain Orchestration and Engagement Cloud further enhance SAP’s AI capabilities, signaling a strategic direction towards unified AI, data, and application layers for future growth.
In another report by Gregory Ramirez titled “AI Shakes Up Talent Acquisition Suites,” the focus shifts to SAP’s acquisition of SmartRecruiters to strengthen its AI talent acquisition tools. This move not only enhances SAP’s position in the HR tech sector but also underlines the company’s commitment to addressing challenges in enterprise AI adoption. Despite the slow pace of AI adoption in enterprises, SAP’s acquisition strategy and focus on unifying data under semantic layers position it well to capitalize on the growing demand for AI-powered solutions in the market.
A look at SAP Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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
According to Smartkarma Smart Scores, SAP SE, a multinational software company known for its development of business software, including e-business and enterprise management software, has a positive long-term outlook. The company scored high in Growth and Resilience, indicating a promising future in terms of expansion and the ability to weather market challenges. With a moderate score in Momentum, SAP shows potential for sustained performance in the near future.
SAP’s Value and Dividend scores, although not as high as Growth and Resilience, still contribute to its overall favorable outlook. As SAP continues to market its products and services globally while providing training and consultancy services on organizational software usage, investors may see the company as a solid choice with potential for growth and stability in the long run.
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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