Walldorf, Germany – SAP, the German software giant, reported a 58% year-on-year increase in first-quarter operating profit, surpassing analysts’ expectations. The company’s operating profit reached 2.5 billion euros, with shares rising by 9.3% in London on Wednesday. Revenue also saw a significant jump of 11% to 9 billion euros, with cloud backlog up 29% year-on-year. Earnings per share increased by 79% to 1.44 euros annually.

CEO Christian Klein expressed satisfaction with the results, stating that the company’s success formula is effective, emphasizing the resilience of SAP’s business model in uncertain times. The CEO credited the AI-powered portfolio for enabling companies to navigate disruptions in the supply chain across more than 130 countries efficiently.

SAP remains optimistic about its full-year cloud revenue forecast, expecting it to fall within the range of 21.6 billion to 21.9 billion euros in constant currency. The company previously upgraded its full-year outlook for 2025 following a successful restructuring program in the first quarter.

Analysts praised SAP’s performance, commending the company’s resilience in the current economic environment. Deutsche Bank analysts referred to SAP’s first-quarter results as “a masterclass in resilience,” highlighting the firm’s capacity to withstand any potential downturn. Other analysts echoed similar sentiments, emphasizing SAP’s ability to weather through macroeconomic challenges and continue to see growth.

Investment banks like JPMorgan and TD Cowen raised their price targets for SAP, expressing confidence in the company’s ability to navigate uncertain conditions and drive growth alongside margin expansion. German bank Metzler also lauded the latest results, noting the solid demand across all verticals despite prevailing uncertainties.

The positive reception to SAP’s earnings update showcases the company’s strong standing in the market and its ability to outperform expectations in challenging times. As the company continues on its growth trajectory, analysts and investors remain optimistic about SAP’s future prospects in the software industry.