SAP Q4 Earnings: Revenue Beats Estimates, Cloud Backlog Grows 32%, CEO Projects Accelerated Revenue Through 2027

SAP SE SAP stock declined after the company reported its fourth-quarter financial results on Tuesday. Here are the details from the report. 

The Details: SAP reported adjusted EPS of $1.49, beating the analyst consensus estimate of $1.40. Quarterly revenue was $10.00 billion, above the analyst consensus estimate of $9.17 billion. 

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SAP reported a cloud backlog of 18.08 billion euros, up 32% and 29% at constant currencies.

Cloud revenue was up 27% as reported and under constant currencies.

Cloud ERP Suite revenue was up 35% as reported and under constant currencies.

IFRS cloud gross profit was up 29%, and non-IFRS cloud gross profit grew 30% and 29% at constant currencies.

IFRS operating profit grew by 6%, and non-IFRS operating profit grew by 24%, as reported under constant currencies.

CEO Christian Klein noted the fourth-quarter marked a strong finish to the year, with half of its cloud order entry including AI. Revenue growth has returned to double-digits. Looking ahead, SAP’s strong position in data and Business AI positioned the company to accelerate revenue growth through 2027, he added.

FY25 Outlook: SAP expects cloud revenue of 21.6 billion Euros–21.9 billion Euros at constant currencies, up by 26%-28% YoY. The company projected 33.1 billion Euros– 33.6 billion Euros in cloud and software revenue at constant currencies, up 11%-13% YoY.

SAP stock surged over 61% in the last 12 months. Investors can gain exposure to the stock through SP Funds Trust SP Funds S&P Global Technology ETF SPTE and Amplify CWP International Enhanced Dividend Income ETF IDVO.

Price Action: SAP stock is down 1.06% at $272.67 premarket at last check Tuesday.

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