SAP, the German software mammoth, exceeded analysts' projections with an adjusted earning per share increase of $1.76, up from $1.30 in the same period last year. This data comes from estimates compiled by Visible Alpha. Although total revenue was approximately in line with expectations at $10.61 billion, SAP's cloud revenue underperformed. It grew 24% to reach $6.04 billion; a deceleration from the over 25% growth observed last year and marginally below estimates.
Despite the slower cloud revenue growth, SAP held its full-year cloud revenue forecast steady at between $25.43 billion and $25.79 billion, contrary to Wall Street analysts' prediction of $25 billion.
Commenting on the results, CEO Christian Klein highlighted the widespread adoption of SAP's AI Assistant, Joule, which is now available everywhere and serves a multitude of functions. Klein said, "Business operations are on the brink of entering a new era, SAP is best positioned to gain from this transformation."
SAP stock took a minor hit in after-hours trading, falling nearly 2%. However, the stock was up nearly 25% for 2025 as of Tuesday's close.