Strong Revenue Growth
SAP achieved impressive revenue growth in the first quarter of 2025. Revenue rose by 12% to €9.01 billion, indicating the company’s sustained growth despite global economic uncertainties. Earnings per share also increased by nearly 80% on a non-IFRS basis, resulting in a value of €1.44. This significantly exceeded analysts’ expectations.
Cloud Business as the Main Driver
The cloud business proved to be the main growth driver. Cloud revenues increased by 27% to nearly €5 billion, with a remarkable rise of 34% in the Cloud ERP sector. These growth figures highlight the increasing demand for cloud solutions, which have become a vital part of SAP’s business model. The gross margin in the cloud business now stands at 75%, further enhancing profitability.
Operating Cash Flow and Stability
SAP’s operating cash flow rose by 31% to €3.78 billion, underscoring the strong financial position of the company. The cloud backlog grew by 29% to €18.2 billion, securing future growth.
Outlook and Investor Reaction
While SAP remains cautiously optimistic for the full year, investors reacted positively to the quarterly numbers, leading to a rise in SAP’s stock. The company’s strong performance in the first quarter has bolstered investor confidence, resulting in a significant jump in the stock price.
In summary, SAP’s performance in the first quarter of 2025 shows that the company is pursuing its strategic goals and solidifying its position as a leading company in the DAX.