SAP (SAP) Reports Strong Q1 2025 Financial Performance

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2 days ago
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Summary Highlights:

  • SAP's cloud backlog grew by 28% in Q1 2025, reaching €18.20 billion.
  • Analysts forecast a 23.95% upside in SAP's stock price over the next year.
  • Current GF Value suggests a potential downside of 30.31% from the current price.

SAP SE (SAP, Financial) has demonstrated impressive growth in its cloud services, reporting a significant 28% increase in its current cloud backlog, amounting to €18.20 billion for the first quarter of 2025. During the same period, SAP's cloud revenue surged by 27%, reaching €4.99 billion. Furthermore, the company's total revenue rose by 12% to €9.01 billion, and non-IFRS operating profit saw a remarkable 60% increase to €2.46 billion, highlighting the company's robust performance despite market volatility.

Wall Street Analysts Forecast

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According to projections from 10 analysts, the average one-year price target for SAP SE (SAP, Financial) is estimated at $312.86. This includes a high estimate of $365.83 and a low estimate of $285.99. These figures suggest a potential upside of 23.95% from the current market price of $252.40. For a more comprehensive analysis, visit the SAP SE (SAP) Forecast page.

The average brokerage recommendation for SAP SE, based on evaluations from 30 firms, stands at 2.1, which corresponds to an "Outperform" status. This is on a scale where a rating of 1 represents a Strong Buy, and 5 signifies a Sell.

As per GuruFocus estimates, the anticipated GF Value for SAP SE (SAP, Financial) over the next year is $175.91. This indicates a potential downside of 30.31% from the current stock price of $252.40. The GF Value is GuruFocus' assessment of the stock's fair trading value, calculated using historical trading multiples, past growth metrics, and future performance forecasts. For more details, refer to the SAP SE (SAP) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.