SAP SE has announced that it will report its second-quarter earnings for 2025 on July 22, with the Zacks Consensus Estimate projecting earnings of $1.63 per share. This reflects a notable 38% increase from the same quarter last year. Revenue expectations for the quarter stand at approximately $10.4 billion, indicating a 16.47% year-over-year growth.
Historically, SAP has performed well, surpassing earnings estimates in each of the previous four quarters and achieving an average earnings beat of 10%. Over the past year, SAP shares have surged by 56.5%, significantly outperforming the industry average growth of 21.4% in the Computers – Software sector.
Investors are particularly focused on SAP’s cloud transformation and AI-driven growth strategies, which are anticipated to significantly impact the company’s performance in the upcoming quarter. The company’s RISE with SAP and Grow with SAP solutions are leading this transformation, contributing to a remarkable 27% increase in cloud revenues to €4.99 billion in the first quarter on a non-IFRS basis. The Cloud ERP Suite, which represented 85% of total cloud revenues, recorded a staggering growth of 34%.
SAP’s commitment to integrating artificial intelligence (AI) into its products is expected to further drive growth. With over 1,300 well-defined skills integrated into its AI co-pilot Joule, and a substantial focus on enhancing AI capabilities, SAP is poised for continued success. The introduction of flexible licensing models will facilitate smoother transitions for customers to the latest cloud-based business suite versions.
Looking ahead to 2025, SAP plans to amplify its investment in AI, dedicating over 30,000 developers to improve AI functionalities and create applications designed to boost user productivity by 30% by the end of the year. With the positive momentum in cloud offerings and AI innovations, SAP is well-positioned for future growth.
This emphasis on transformative technologies reflects a broader trend in the software industry, where companies are adopting cloud solutions and advanced AI capabilities to enhance operational efficiency and drive profitability. The growth outlook for SAP demonstrates a bright path forward in an evolving digital landscape.