Q1 25 EPS
$1.44
BEAT +17.07%
Est. $1.23
Q1 25 Revenue
$9.01B
vs S&P Since Q1 25
-68.4%
TRAILING MARKET
SAP -37.5% vs S&P +30.9%
Market Reaction
Did SAP Beat Earnings? Q1 2025 Results
SAP posted a decisive beat in Q1 2025, with earnings per share of $1.44 clearing the $1.23 consensus estimate by 17.07% as the German enterprise software giant demonstrated that its cloud transformation is delivering both scale and profitability simu… Read more SAP posted a decisive beat in Q1 2025, with earnings per share of $1.44 clearing the $1.23 consensus estimate by 17.07% as the German enterprise software giant demonstrated that its cloud transformation is delivering both scale and profitability simultaneously. Revenue climbed 12.1% year-over-year to $9.01 billion, anchored by a 27% surge in cloud revenue to $4.99 billion and a 34% jump in Cloud ERP Suite revenue to $4.25 billion. The quarter's most compelling story was the dramatic profit recovery: non-IFRS operating profit leapt 60% to $2.46 billion, with margins expanding 8.2 percentage points to 27.2%, as SAP's completed transformation program, which carried $2.24 billion in restructuring charges a year ago, gave way to meaningful cost efficiencies. Free cash flow rose 36% to $3.58 billion, underscoring the financial health of the model. Looking ahead, SAP reaffirmed its full-year 2025 guidance for cloud revenue of $21.60 billion to $21.90 billion at constant currencies, and non-IFRS operating profit of $10.30 billion to $10.60 billion, projecting growth of 26% to 30% despite elevated macroeconomic uncertainty.
Key Takeaways
- • Cloud ERP Suite revenue growth of 34% driven by strong RISE with SAP adoption
- • Operational efficiencies from 2024 transformation program drove 8.2pp non-IFRS operating margin expansion
- • Share of more predictable revenue increased to 86%
- • Current cloud backlog grew 28% to €18.2 billion, indicating strong future demand
- • Cloud gross margin improved 2.5pp (non-IFRS) to 75.0%
- • Particularly strong cloud revenue performance in APJ (up 39%) and EMEA (up 30%)
SAP YoY Financials
Q1 2025 vs Q1 2024, source: SEC Filings
SAP Revenue by Segment
With YoY comparisons, source: SEC Filings
SAP Revenue by Geography
With YoY comparisons, source: SEC Filings
“Q1 once again underlines that our success formula is working. Current cloud backlog expanded 29% at constant currencies and total revenue saw a double-digit increase. With a share of more predictable revenue of 86%, SAP's business model remains resilient in uncertain times. Our AI-powered portfolio enables companies to navigate supply chain disruptions in over 130 countries and to unlock efficiencies with agility and speed.”
— Christian Klein, Q1 2025 Earnings Press Release
SAP Earnings Trends
SAP vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
SAP EPS Trend
Earnings per share: estimate vs actual
SAP Revenue Trend
Quarterly revenue: estimate vs actual
SAP Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 | — | $1.72 | — | $9.56B | — |
| Q1 26 | — | — | — | — | — |
| Q3 25 MISS | $1.64 | $1.59 | -3.05% | $9.08B | — |
| Q2 25 MISS | $1.69 | $1.50 | -11.24% | $9.03B | — |
| Q1 25 BEAT | $1.23 | $1.44 | +17.07% | $9.01B | — |
| Q4 24 MISS FY | $1.49 | $1.40 | -6.04% | $9.38B | — |
| FY Full Year | — | $4.53 | — | $34.18B | — |