The stock of SAP (SAP) is down 3% after the German enterprise software company reported mixed second-quarter financial results.
SAP announced earnings per share (EPS) of 1.50 euros ($1.76 U.S.), which beat Wall Street estimates of €1.43 a share.
However, revenue in the April through June period of €9.03 billion just missed analyst expectations of €9.09 billion. Sales were up 9% from a year earlier.
The company’s cloud business continues to be the primary growth driver, with revenue in that business unit surging to €5.13 billion, up 24% year-over-year.
Free cash flow was also strong, coming in at €2.35 billion, an 83% year-over-year increase.
SAP’s move to become a leading cloud provider continues to gain traction, with the company’s current cloud backlog reaching €18.05 billion, up 22% from the previous year.
Cloud gross profit improved to €3.85 billion with a gross margin of 75.2%, showing continued improvement from 73.3% a year ago.
SAP also reported strong growth across geographic regions.
Cloud revenue in Asia-Pacific grew by 33% year-over-year during Q2, while the Americas performed well with 16% annualized growth.
SAP’s artificial intelligence (AI) innovation strategy is also driving its business transformation, with the rollout of AI agents delivering measurable efficiency improvements.
Prior to today (July 23), SAP stock had risen 26% this year to trade at $306.29 U.S. per share in New York.
