23 July 2025
If you are covering SAP’s latest results, please find below a comment from Ben Barringer, head of technology research at Quilter Cheviot:
“All in all, SAP’s results are a bit plain vanilla as the company continues to underscore its credentials as an established AI leader. Revenues beat expectations with the transition to cloud services continuing to drive things forward. That business was up 28%, a slight acceleration on the previous quarter and given the backlog that remains this should remain a good pipeline for growth.
“SAP has also done a very good job at integrating AI into its own business processes. It says it is now solving IT requests 20% quicker, while coders are 30% more efficient. These sorts of numbers all point to a productivity boost at a really important time given the state of the economic environment. It also highlights to customers that SAP is eating its own cooking, using this internal progress to create products that will actually provide productivity gains in the logistics chain for companies.
“The only slight disappointment with these results is that there was no raise to the guidance, especially given the beating of expectations this quarter. The company has a history of conservatism, but given it is looking to appeal more and more to a US investor base, this approach may need to loosen over time. Clearly there is still some tariff uncertainty overhanging, but SAP has shown it has the products and the engagement from customers to come through this and remain one of the leaders in AI integration for customers.”
