A Peek at SAP's Future Earnings

SAP SAP will release its quarterly earnings report on Tuesday, 2025-04-22. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate SAP to report an earnings per share (EPS) of $1.42.

SAP bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Past Earnings Performance

During the last quarter, the company reported an EPS missed by $0.02, leading to a 1.11% increase in the share price on the subsequent day.

Here's a look at SAP's past performance and the resulting price change:

SAP Share Price Analysis

Shares of SAP were trading at $257.4 as of April 18. Over the last 52-week period, shares are up 33.59%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Insights on SAP

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on SAP.

Analysts have given SAP a total of 5 ratings, with the consensus rating being Outperform. The average one-year price target is $248.8, indicating a potential 3.34% downside.

Comparing Ratings with Peers

The analysis below examines the analyst ratings and average 1-year price targets of Salesforce, Palantir Technologies and Intuit, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for Salesforce, with an average 1-year price target of $351.74, suggesting a potential 36.65% upside.
• Analysts currently favor an Neutral trajectory for Palantir Technologies, with an average 1-year price target of $97.11, suggesting a potential 62.27% downside.
• Analysts currently favor an Outperform trajectory for Intuit, with an average 1-year price target of $707.0, suggesting a potential 174.67% upside.

Comprehensive Peer Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for Salesforce, Palantir Technologies and Intuit, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

SAP ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Delving into SAP's Background

Founded in Germany in 1972 by former IBM employees, SAP is the world's largest provider of enterprise application software. Known as the leader in enterprise resource planning software, SAP's portfolio also includes software for supply chain management, procurement, travel and expense management, and customer relationship management, among others. The company operates in more than 180 countries and has more than 400,000 customers, approximately 80% of which are small to medium-size enterprises.

Breaking Down SAP's Financial Performance

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Positive Revenue Trend: Examining SAP's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.73% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: SAP's net margin excels beyond industry benchmarks, reaching 17.07%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): SAP's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 3.7%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): SAP's ROA stands out, surpassing industry averages. With an impressive ROA of 2.23%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.23.

To track all earnings releases for SAP visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.