April 23 (Reuters) – Europe’s largest software maker SAP on Thursday reported a 17% increase in first-quarter profit, beating estimates, due to strong growth in its cloud business.
U.S.-listed shares of SAP were up 5.4% after the results.
The company also maintained its full-year outlook for overall revenue growth, including cloud growth at 23% to 25%, but noted this depends on the de-escalation of the Middle East conflict.
“We have remained focused on managing our cost base and maintaining profitability as we navigate an increasingly complex and uncertain macroeconomic and geopolitical environment,” Chief Financial Officer Dominik Asam said.
Total revenue in the three months ended March 31 increased 6% to 9.56 billion euros ($11.17 billion), slightly above estimates of 9.53 billion euros in a company-compiled consensus.
Cloud revenue surged 19% to 5.96 billion euros, above the median analysts’ estimate of 5.88 billion euros.
Non-IFRS operating profits, which strip out one-off items, climbed to 2.87 billion euros from 2.46 billion euros in the quarter, ahead of expectations for 2.71 billion euros.
SAP expects total revenue growth at constant currencies in 2026 to remain at similar levels as in 2025 and to accelerate in 2027, compared to its previous outlook of growth accelerating through 2027.
($1 = 0.8559 euros)
(Reporting by Natalia Bueno Rebolledo and Mrinmay Dey in Mexico City; Editing by Maju Samuel, Pooja Desai and Vijay Kishore)
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