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SAP now down 4.5% after hours
Conference call will kick off at 5 PM EDT and more questions will be answered then. The stock is down 4.5% so far after-hours .
Management notes
- Christian Klein (CEO): “We have delivered yet another quarter of outstanding results. AI innovations such as Joule becoming available “everywhere and for everything” and SAP Business Data Cloud as a powerful accelerator of AI make our portfolio ever stronger. Enterprise operations are about to enter a new era, and SAP is best positioned to benefit from that evolution.”
- Dominik Asam (CFO): “We achieved a very good Q2, with accelerating total revenue growth, strong profitability and free cash flow. Our performance was supported by continued customer demand and disciplined cost control. As we move into the second half, we remain cautiously optimistic, keeping a close eye on geopolitical developments and public sector trends.”
Guidance
Full-Year 2025 Guidance vs. Pre-Earnings ExpectationsThe company maintained its FY 2025 outlook unchanged. Here’s how it aligns with the provided pre-earnings forecasts:
- Revenue: Pre-earnings forecast €37.61 billion. Outlook specifies cloud revenue €21.6–21.9 billion (up 26–28% at cc) and cloud+software revenue €33.1–33.6 billion (up 11–13% at cc). Total revenue isn’t explicitly guided but implies alignment with ~€37–38 billion based on H1 actuals (€18.04 billion) and growth trends.
- EPS: Pre-earnings forecast €7.10 (implying +49.3% growth). No direct EPS guidance, but non-IFRS operating profit guided to €10.3–10.6 billion (up 26–30% at cc), supporting strong earnings expansion.
- Other: Free cash flow ~€8.0 billion (up from €4.22 billion in 2024). Current cloud backlog €18.1 billion (up 22%, +28% at cc), signaling durable growth.
Earnings are in and SAP down 3.5%
Earnings are in the SAP is down 3.5% after hours. Updates coming.
Revenue Comparison (Q2 2025)
|
Metric
|
Estimate
|
Actual (Non-IFRS)
|
Variance
|
% Change YoY (Actual)
|
|---|---|---|---|---|
|
Total Revenue
|
€9.01 billion
|
€9.027 billion
|
+€0.017 billion (beat)
|
+9% (+12% at constant currencies)
|
|
Cloud Revenue
|
Not specified
|
€5.13 billion
|
N/A
|
+24% (+28% at constant currencies)
|
|
Cloud ERP Suite Revenue
|
Not specified
|
€4.422 billion
|
N/A
|
+30% (+34% at constant currencies)
|
- Notes: Total revenue slightly beat estimates, driven by strong cloud growth. The share of more predictable revenue rose to 86% (up 2pp YoY).
EPS Comparison (Q2 2025)
|
Metric
|
Estimate (Normalized)
|
Actual (Non-IFRS Basic)
|
Variance
|
% Change YoY (Actual)
|
|---|---|---|---|---|
|
EPS
|
€1.67
|
€1.50
|
-€0.17 (miss)
|
+37%
|
- Notes: EPS missed estimates, though it showed strong YoY growth. IFRS basic EPS was €1.45 (+91% YoY), boosted by lower restructuring expenses. The miss may reflect factors like currency impacts or higher taxes (non-IFRS effective tax rate: 30.8%).
Earnings out shortly
SAP will close the day down .38% and earnings will be released in the next 15 minutes. Stay on this page for updates on quarterly performance.
How SAP stock performed after past earnings
SAP has delivered positive surprises in 3 of the past 4 quarters, with strong post-earnings moves when beats exceeded 10%.
| Quarter | EPS Surprise | 1-Day Move | 7-Day Move | 14-Day Move |
|---|---|---|---|---|
| Q1 2025 | +15.01% | +3.6% | +5.8% | +7.9% |
| Q4 2024 | -1.63% | -1.2% | -2.1% | -1.4% |
| Q3 2024 | +1.41% | +0.8% | +2.7% | +4.1% |
| Q2 2024 | +11.32% | +4.2% | +6.3% | +8.4% |
Wall Street is watching closely to see if SAP (NYSE: SAP) continues to deliver on its promise of durable growth and operating leverage. The German software giant is set to report Q2 2025 earnings after the bell today, and expectations are high following a blowout Q1 that saw 15% EPS growth and double-digit cloud expansion.
What to Expect When SAP Reports Q2 2025 Results
Here’s what Wall Street is forecasting for the June quarter:
- Revenue: $9.01 billion
- EPS (Normalized): $1.67
And for the full year:
- FY 2025 Revenue: €37.61 billion
- FY 2025 EPS: $7.10
That implies revenue growth of 10.0% and earnings growth of 49.3%, outpacing most global software peers thanks to SAP’s rapid cloud transition and restructuring tailwinds
Key Areas to Watch When SAP Reports Tonight
Here are the key themes investors will be watching:
1. RISE with SAP Migration Velocity
CEO Christian Klein emphasized accelerating cloud migrations via RISE, noting record S/4HANA cloud backlog and a +28% y/y cloud revenue increase. Investors will want evidence that large enterprises continue to move core workloads onto SAP’s cloud stack.
2. GenAI Integration & Monetization Strategy
SAP launched its Joule AI assistant last fall, and GenAI adoption was mentioned in 20+ customer examples last quarter. Investors will look for clarity on monetization, attach rates, and productivity gains driven by embedded AI.
3. Operating Margin Expansion
Q1 delivered a 15% increase in EPS on 9% revenue growth as cloud mix lifted margins. Expect scrutiny on SAP’s ability to continue leveraging efficiency gains from restructuring and mix shift.
4. Demand Commentary for Q3 and FY25
Management guided to improving pipeline conversion and robust backlog in Q1. Any change in tone around deal velocity or macro softness could move the stock.
5. U.S. Cloud Adoption
North America has been a growth engine. Watch for updates on public sector wins and uptake among Fortune 500 firms adopting RISE and Business Technology Platform.
The post Live Coverage: Will SAP Stock Soar After Reporting Q2 Earnings? appeared first on 24/7 Wall St..
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Author: Joel South
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