23 April 2025
If you are covering SAP’s latest results, please see the following comment from Ben Barringer, global technology analyst at Quilter Cheviot:
“SAP has delivered a solid set of results, offering another port in the storm for investors after a decent showing from Netflix recently. Shares are up 9% on the back of strong numbers, with a particularly robust 29% growth in its cloud backlog. It beat expectations on both profits and free cash flow and reiterated full-year guidance for revenue growth of 11–13% and operating profit of 26–30%. There is a sense it might have even raised its guidance if the political and economic backdrop wasn’t so unpredictable.
“With no signs of a slowdown in April, it’s clear that clients remain committed to their cloud journeys, despite geopolitical uncertainty and tariff tensions. In fact, SAP’s core strength in logistics could even benefit from a more complicated trade environment. The key risk lies in implementation as these are complex, large-scale transitions but the company is sitting on a reservoir of 30,000 existing clients to convert. The next big catalyst will be SAP’s Sapphire conference in May, which should provide further insight into how it plans to keep the momentum going.”
