23.04.2025

SAP Stock Benefits from Strong Quarterly Numbers: Analysis and Implications

Overview of Quarterly Results

The SAP stock showed a significantly positive reaction after the release of impressive quarterly numbers on April 22, 2025, rising noticeably in after-hours trading. This reflects investor confidence in the company’s revitalized performance.

Key Figures and Price Development

  • In the first quarter of 2025, SAP achieved earnings per share (EPS) of €1.52, recovering from a loss of €0.71 per share in the same period last year. Analysts had previously expected an EPS of €1.32, thus SAP exceeded forecasts.
  • Revenue increased to €9.013 billion compared to €8.04 billion last year, nearly in line with expectations of €9.06 billion.
  • The adjusted operating profit rose an impressive 58% to €2.46 billion.
  • Cloud revenues grew by 26% to nearly €5 billion but fell slightly short of expectations.

Share Price Development in After-Hours Trading

  • After the announcement of the figures, the SAP ADR traded on the NYSE temporarily rose by about 6.48% to around $268.75.
  • In Germany, the stock also increased by about 5% to approximately €230 in after-hours trading at Lang & Schwarz.
  • Despite this rise, the stock is still down by over eight percent since the start of the year and has lost about a fifth of its value since its record high in February.

Significance for Private Investors

The strong quarterly results signal a robust recovery of the company despite a challenging macroeconomic environment. The significant increase in profits and steady revenue growth, especially in the area of cloud services, could boost private investors’ confidence and serve as a positive impetus for the stock price.

SAP has also confirmed its annual targets, expecting cloud revenues between €21.6 to €21.9 billion and an operating profit of approximately €10.3 to €10.6 billion. These projections provide investors with guidance for medium- to long-term development.

Conclusion

The quarterly results led to an immediate positive reaction in stock prices and may motivate private investors to take advantage of attractive entry points or reaffirm existing positions. Despite the recent price decline, SAP remains resilient and focused on growth in the long term.