German software maker SAP beats first-quarter profit estimates on cloud demand

Read a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST

April 23 : Europe's largest software maker SAP on Thursday reported a 17 per cent increase in first-quarter profit, beating estimates, due to strong growth in its cloud business.

U.S.-listed shares of SAP were up 5.4 per cent after the results.

The company also maintained its full-year outlook for overall revenue growth, including cloud growth at 23 per cent to 25 per cent, but noted this depends on the de-escalation of the Middle East conflict.

"We have remained focused on managing our cost base and maintaining profitability as we navigate an increasingly complex and uncertain macroeconomic and geopolitical environment," Chief Financial Officer Dominik Asam said.

CNA Games

Guess Word
Crack the word, one row at a time

Buzzword
Create words using the given letters

Mini Sudoku
Tiny puzzle, mighty brain teaser

Mini Crossword
Small grid, big challenge

Word Search
Spot as many words as you can
Show More
Show Less

Total revenue in the three months ended March 31 increased 6 per cent to 9.56 billion euros ($11.17 billion), slightly above estimates of 9.53 billion euros in a company-compiled consensus.

Cloud revenue surged 19 per cent to 5.96 billion euros, above the median analysts' estimate of 5.88 billion euros.

Non-IFRS operating profits, which strip out one-off items, climbed to 2.87 billion euros from 2.46 billion euros in the quarter, ahead of expectations for 2.71 billion euros.

SAP expects total revenue growth at constant currencies in 2026 to remain at similar levels as in 2025 and to accelerate in 2027, compared to its previous outlook of growth accelerating through 2027.

($1 = 0.8559 euros)

Newsletter

Week in Review

Subscribe to our Chief Editor’s Week in Review

Our chief editor shares analysis and picks of the week's biggest news every Saturday.

Sign up for our newsletters

Get our pick of top stories and thought-provoking articles in your inbox

Subscribe here

Get the CNA app

Stay updated with notifications for breaking news and our best stories

Download here

Get WhatsApp alerts

Join our channel for the top reads for the day on your preferred chat app

Join here