- SAP’s 3rd quarter non-IFRS revenue was €8.47 billion, meeting the estimate of €8.45 billion.
- Non-IFRS cloud and software revenue reached €7.43 billion, surpassing the estimate of €7.36 billion.
- The non-IFRS cloud revenue was €4.35 billion, slightly below the estimate of €4.36 billion.
- Non-IFRS software licenses revenue amounted to €280 million, exceeding the estimate of €239.7 million.
- Cloud revenue in constant currencies rose by 27%, above the 25.6% estimate.
- Gross profit matched the estimates at €6.24 billion.
- Operating profit was €2.24 billion, higher than the estimated €2.06 billion.
- Profit after tax was €1.44 billion, beating the estimate of €1.23 billion.
- Non-IFRS Earnings per Share (EPS) were €1.23, above the €1.20 estimate.
- Free cash flow significantly outperformed expectations at €1.25 billion against an estimated negative €677 million.
- SAP maintains its forecast of non-IFRS cloud revenue between €17.0 billion and €17.3 billion for the year, aligning with the €17.11 billion estimate.
- The company aims to increase the percentage of women in executive roles to 25% by the end of 2027.
- Analyst recommendations include 21 buys, 7 holds, and 3 sells.
A look at SAP Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have assessed SAP SE based on various factors crucial for long-term investment decisions. The company’s overall outlook is positive, with solid scores across different categories. SAP scored moderately in the areas of value and dividend, indicating that it offers reasonable investment potential and dividend returns. Moreover, with a stronger score in growth, SAP is positioned for expansion and development in the future. The company’s high resilience score reflects its ability to withstand market challenges effectively. Additionally, SAP’s momentum score is the highest, suggesting that the company has strong positive market traction.
SAP SE, a multinational software company known for developing business software solutions, including e-business and enterprise management software, is well-positioned for future growth and success based on Smartkarma’s analysis. With a global presence and a focus on providing top-notch software and training services, SAP’s outlook remains promising. Investors seeking a company with a balanced mix of value, growth potential, resilience, and market momentum may find SAP an appealing long-term investment option.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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