SAP
Note: This is a daily stock update and the information stands true as of 24/04/26, 09:00 CET
Company Update:
Cloud Revenue: €5.96bn (+27% cc), driven by the Cloud ERP Suite (+30%).
Cloud Revenue: €5.96bn (+27% cc), driven by the Cloud ERP Suite (+30%).
Current Cloud Backlog : €21.9bn, up 25%, providing increased visibility for the fiscal year (1% beat to consensus)
Profitability: Operating profit (IFRS) rose 17% to €2.74bn (representing a 28.7% margin) c 12% beat in non IFRS
Free cash flow reached €3.25bn, including the final settlement of the Teradata litigation (€408m).
FY Guidance confirmed notably targeting free cash flow of around €10bn and cloud revenue between €25.8bn and €26.2bn
Expert Opinion:
The beat in Q1 will probably be a relief. However, the unchanged guidance and the current environment mean the consensus is unlikely to upgrade its numbers. Despite the MASSIVE drop in share price c-50% since Feb 25), the valuation isn't especially chap (PE26 /27/28 of 20x, 17.3x and 15.3x respectively).
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The beat in Q1 will probably be a relief. However, the unchanged guidance and the current environment mean the consensus is unlikely to upgrade its numbers. Despite the MASSIVE drop in share price c-50% since Feb 25), the valuation isn't especially chap (PE26 /27/28 of 20x, 17.3x and 15.3x respectively).
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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