On Wednesday, SAP registered an interannual leap of 58% in the operational profits of the first trimester in constant currency, and also confirms its perspective for cloud income throughout the year.
SAP’s operational gain reached 2.5 billion euros ($ 2.9 billion) in the first quarter, compared to analysts about 2.2 billion euros, according to LSE data.
The company’s shares appeared 10.3% at 10:23 am in London on Wednesday.
The German software giant, which last month became the most valuable public company in Europe, said the income had increased 11% to 9 billion euros, with its cloud portfolio 29% year after year. Profit per share increased 79% by an annual basic to 1.44 euros.
SAP also said that he continues to wait for the cloud income throughout the year to fall into the range or 21.6 billion euros to 21.9 billion euros in constant currency this year.
SAP ‘more relevant than ever’ in the midst of the uncertainty of tariffs
In statements to “CNBC Europe” Squawk Box “on Wednesday, the SAP CEO, Christian Klein, approached the uncertainty that the new US tariffs were creating for companies around the world, including the SAP client base.
Duration A visit to the USA. Last week, Small said he spoke with clients concerned with the impact of the wide series of tariffs of the president of the United States, Donald Trump, who slapped in imports.
“What they tell me is,” his software is now more relevant than ever, “he told CNBC, and added that SAP was helping companies do business in more than 130 countries. The company’s software offers customers the media to maintain their resistant supply chains, he said, by helping them determine what suppliers could still offer competitive costs.
“That gives me a lot of confidence and the company in these times when it comes to development throughout the year and that is why we also confirm our orientation,” Klein said.
SAP updated its entire year perspective by 2025 in January, after its adjusted operational gain increased 25% to 8.15 billion euros throughout the year 2024. The company completed a restructuring program of the entire company in the first quarter of this year.
On Wednesday, Klein told CNBC that the growth in the SAP cloud unit gave the company “a lot of predictability.”
“When I talk about predictability, it’s not just a fashion word,” he said. “Look at our total income, … it consists of 86% recurrent income. That is predictability, that is resistance.”
“It is very difficult to predict what will happen after the 90 -day break in most [U.S. reciprocal] Tariffs, and of course, there are multiple scenarios, “he added.” But we are still optimistic giving what we see in the market [and] What we hear from our customs. “
Resilience
Reacting to the SAP profits update on Wednesday, analysts praised the company’s resistance in the current macroeconomic environment. In a note for customers on Wednesday, Deutsche Bank analysts labeled the results of the first SAPS quarter as “a master class in resilience.”
By observing that they expected the company to resist any recession that may affect the global economy, the analysts of the German lender promoted “the strong cost discipline and a greater management of the cost levers in case the macro desired macro that disbursed that induction of that release of that disunity of that amount that that is, that it becomes that amount that wood WOUDDIration that wouddioration that wouddioration has that amount that wears that amount that becomes that amount that wouuddioration that wouuddioration that wouuddioration that wouddioration has the same incursion that is coming that wouuddioration that wouddioration that wouuddioration that wouddioration has that Amount that becomes that amount that they vibrate that amount that becomes that amount that Wouddioration that wouddioration that wouddioration that goes to earth.
“In general, with the warnings that begin to materialize in the sphere of technology and the light that the shared resources of juice are -22% from the peak, this is a strong set of results and illustrates the resistance and defense of SAP’s profits in a memorandum.
TD Cowen analysts echoed the positive feeling, raising their target price at $ 320 from $ 315 per share.
“We continue constructive with the SAP capacity for climate through choppy macro conditions and that the model continues to see the acceleration of growth together with a wide expansion of the margin,” said Derrick Wood of the investment bank.
Pascal Spano of German Bank Metzler also suggested that the last results are indicative of the company’s capacity and management to overcome in a recession.
“The cloud income and the current accumulation of the cloud continue to see a good impulse, publishing a solid demand of all verticals despite current uncertainties,” Spano told customers in a note after the results were released.
– Ganesh Rao and Abby Ryanto de CNBC contributed to this report.
