SAP has made an excellent begin to the 2025 monetary 12 months. The German software program group reported income of simply over €9 billion for the first quarter, 12% greater than in the identical quarter final 12 months. Cloud income elevated by 27 p.c to nearly €5 billion. SAP achieved an adjusted working revenue of €2.45 billion, a rise of 60 p.c in comparison with the primary quarter of 2024 and considerably greater than analysts had anticipated. The underside line was a revenue of slightly below €1.8 billion, after the software program producer posted a lack of €824 million in the identical quarter of the earlier 12 months because of one-off results.

“The primary quarter exhibits as soon as once more that our formulation for achievement is working,” mentioned CEO Christian Klein. With a share of extra predictable revenues of 86 p.c, SAP’s enterprise mannequin remained resilient regardless of unsure occasions.

Unstable atmosphere

CFO Dominik Asam spoke of a “stable begin to the 12 months in an especially unstable atmosphere.” The outcomes are proof of SAP’s value self-discipline and the focused implementation of its personal technique. Nonetheless, the CFO urged warning: “Even when we’re inspired by this dynamic growth, we’re at all times keeping track of the broader atmosphere and stay vigilant for the remainder of the 12 months.”

SAP has now accomplished the restructuring program introduced in January 2024 and affecting round 10,000 jobs, it mentioned. It put the overall value of this system at €3.2 billion, of which €2.8 billion was already booked within the 2024 monetary 12 months and within the first quarter of the present 12 months. Additional funds of round €400 million euros are anticipated in the middle of 2025. SAP mentioned it now employs 108,187, in comparison with 108,133 a 12 months in the past.

The corporate confirmed its forecasts for the present monetary 12 months, “even when the present atmosphere is characterised by excessive dynamics and uncertainty and additional growth is subsequently troublesome to evaluate.” It expects cloud income of €21.6 billion to €21.9 billion in 2025, in comparison with €17.1 billion final 12 months. It expects the currency-adjusted working consequence to be between €10.3 billion and €10.6 billion, in comparison with €8.15 billion in 2024.

The US remains to be SAP’s largest market

Nonetheless, the erratic monetary coverage of latest US President Donald Trump, which is weakening the greenback particularly, can be more likely to have penalties for SAP. In view of the trade fee fluctuations, SAP expects progress in cloud income to be two proportion factors decrease. Development in working revenue is predicted to be one proportion level decrease, it mentioned.

The US is an important single marketplace for SAP. Within the first quarter of 2025, the corporate recorded gross sales of virtually €3 billion within the US. By comparability, it reported gross sales of slightly below €1.4 billion for Germany, and over €4 billion for the EMEA area as a complete.