SAP (NYSE:SAP) Announces Quarterly Earnings Results, Beats Expectations By $0.07 EPS
by Scott Moore · The Cerbat GemSAP (NYSE:SAP – Get Free Report) announced its quarterly earnings data on Thursday. The software maker reported $1.99 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.92 by $0.07, FiscalAI reports. The firm had revenue of $11.19 billion for the quarter, compared to the consensus estimate of $11.21 billion. SAP had a net margin of 19.92% and a return on equity of 16.54%. The business’s revenue for the quarter was up 6.0% on a year-over-year basis. During the same period in the prior year, the company posted $1.52 earnings per share.
Here are the key takeaways from SAP’s conference call:
- SAP reported a strong Q1 — current cloud backlog rose 25% to €21.9bn, cloud revenue grew 27% (close to €6bn), total revenue was €9.6bn (+12%), and operating margin reached 30% (operating profit €2.9bn, +24%).
- Management positioned Business AI as the core strategic priority, announcing planned portfolio changes at Sapphire to embed SAP’s ERP domain knowledge into AI agents and signaling a gradual shift toward more consumption‑based cloud revenue rather than a disruptive transition.
- Executives cautioned that the ongoing Middle East conflict — and especially a prolonged closure of the Strait of Hormuz — could materially disrupt supply chains and customer spending, creating downside risk to 2026 bookings and cloud growth despite management maintaining guidance assuming near‑term de‑escalation.
- SAP cited concrete AI and productivity wins that support monetization and margin upside — customer examples (e.g., Daimler Trucks €70m impact) and faster ERP migrations with partners, plus internal gains (developers +30%, 20% of support tickets resolved autonomously) and a target of ~€2bn one‑way efficiencies by end‑2028.
SAP Price Performance
NYSE:SAP traded up $10.24 on Friday, hitting $173.49. The company had a trading volume of 4,136,902 shares, compared to its average volume of 3,227,249. SAP has a 52 week low of $160.66 and a 52 week high of $313.28. The company has a current ratio of 1.16, a quick ratio of 1.16 and a debt-to-equity ratio of 0.13. The stock has a market capitalization of $213.13 billion, a price-to-earnings ratio of 24.60, a PEG ratio of 1.95 and a beta of 1.24. The firm has a 50 day moving average of $184.09 and a two-hundred day moving average of $223.38.
SAP Increases Dividend
The business also recently disclosed an annual dividend, which will be paid on Friday, May 15th. Investors of record on Tuesday, May 5th will be paid a $2.9291 dividend. This represents a yield of 175.0%. The ex-dividend date of this dividend is Tuesday, May 5th. This is a positive change from SAP’s previous annual dividend of $2.54. SAP’s payout ratio is currently 26.10%.
Wall Street Analysts Forecast Growth
A number of analysts have recently weighed in on SAP shares. Barclays cut their price target on shares of SAP from $283.00 to $256.00 and set an “overweight” rating for the company in a report on Monday. TD Cowen restated a “buy” rating on shares of SAP in a research report on Thursday, April 16th. Piper Sandler cut SAP from an “overweight” rating to a “neutral” rating in a research note on Tuesday, April 14th. Citigroup downgraded SAP from a “buy” rating to a “hold” rating in a report on Friday, January 30th. Finally, Citizens Jmp cut SAP from an “outperform” rating to a “market perform” rating in a report on Friday, January 30th. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $287.75.
View Our Latest Research Report on SAP
Institutional Inflows and Outflows
A number of large investors have recently modified their holdings of the company. Riggs Asset Managment Co. Inc. grew its position in SAP by 83.8% during the 2nd quarter. Riggs Asset Managment Co. Inc. now owns 147 shares of the software maker’s stock worth $45,000 after acquiring an additional 67 shares during the last quarter. JPL Wealth Management LLC bought a new stake in shares of SAP during the third quarter worth about $49,000. Greenline Wealth Management LLC bought a new stake in shares of SAP during the fourth quarter worth about $50,000. Transamerica Financial Advisors LLC increased its stake in shares of SAP by 101.6% in the fourth quarter. Transamerica Financial Advisors LLC now owns 250 shares of the software maker’s stock valued at $61,000 after buying an additional 126 shares during the period. Finally, Colonial Trust Co SC raised its holdings in SAP by 194.2% in the 4th quarter. Colonial Trust Co SC now owns 253 shares of the software maker’s stock valued at $62,000 after buying an additional 167 shares during the last quarter.
Key Headlines Impacting SAP
Here are the key news stories impacting SAP this week:
- Positive Sentiment: Q1 beat on profit and solid revenue: SAP reported $1.99 EPS vs. $1.92 est. and revenue roughly in line with expectations, with operating profit up ~17% — the numbers beat consensus and underpin the rally. MarketBeat Q1 coverage
- Positive Sentiment: Cloud growth is driving confidence: Current cloud backlog rose to €21.9B (+20%, +25% cc) and cloud revenue grew strongly (reported +19%, +27% cc), showing recurring revenue momentum that reduces cyclical risk. PR Newswire Quarterly Statement
- Positive Sentiment: Management message eases AI fears: CEO comments in media interviews stressed SAP’s AI-readiness and differentiated positioning, helping investors view SAP as a beneficiary — not a casualty — of AI disruption. CNBC CEO interview
- Neutral Sentiment: Market commentary and rebound: Major outlets (WSJ, Barron’s, Bloomberg) frame the move as a rebound for SAP and the cloud segment after a weak software session, adding broader market context but not new fundamental data. WSJ coverage
- Neutral Sentiment: Earnings materials and call available: Investors can review the earnings slide deck and call transcript for details on guidance, segment trends and margins (useful for modelling but not new market-moving headlines). Slide deck
- Negative Sentiment: Some analyst target trims: BMO lowered its price target from $210 to $200 but kept an “outperform” rating, which signals cautious optimism but reduces upside expectations. Benzinga note
- Negative Sentiment: Analysts trimmed targets ahead of the print: Several brokers trimmed price targets before earnings, a reminder that consensus expectations and estimates remain in flux despite the beat. InsiderMonkey on target trims
About SAP
SAP SE is a global enterprise software company headquartered in Walldorf, Germany. Founded in 1972 by five former IBM engineers, the company’s name is an acronym for Systeme, Anwendungen und Produkte in der Datenverarbeitung (Systems, Applications & Products in Data Processing). SAP develops and sells software and services that help organizations manage business processes across finance, human resources, procurement, manufacturing, supply chain and customer relationships.
SAP’s product portfolio spans on‑premises and cloud offerings, anchored by its enterprise resource planning (ERP) solutions such as SAP S/4HANA and the SAP HANA in‑memory database and platform.