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SAP Earnings Preview
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SAP Earnings Preview
Jun 4, 2025 7:22 AM

SAP will release its quarterly earnings report on Tuesday, 2025-04-22. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate SAP to report an earnings per share (EPS) of $1.44.

SAP bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Performance in Previous Earnings

Last quarter the company missed EPS by $0.02, which was followed by a 1.11% increase in the share price the next day.

Here's a look at SAP's past performance and the resulting price change:

Quarter Q1 2025 Q4 2024 Q3 2024 Q2 2024
EPS Estimate 1.44 1.51 1.33 1.19
EPS Actual 1.51 1.49 1.35 1.18
Price Change % 8.0% 1.0% 1.0% 7.000000000000001%

Stock Performance

Shares of SAP were trading at $306.39 as of June 03. Over the last 52-week period, shares are up 59.1%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on SAP

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on SAP.

Analysts have provided SAP with 4 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $322.0, suggesting a potential 5.09% upside.

Analyzing Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Palantir Technologies, Salesforce and Intuit, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

Analysts currently favor an Neutral trajectory for Palantir Technologies, with an average 1-year price target of $101.42, suggesting a potential 66.9% downside.

Analysts currently favor an Outperform trajectory for Salesforce, with an average 1-year price target of $324.38, suggesting a potential 5.87% upside.

Analysts currently favor an Outperform trajectory for Intuit, with an average 1-year price target of $788.48, suggesting a potential 157.35% upside.

Summary of Peers Analysis

Within the peer analysis summary, vital metrics for Palantir Technologies, Salesforce and Intuit are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Company Consensus Revenue Growth Gross Profit Return on Equity
SAP Outperform 12.09% $6.61B 3.91%
Palantir Technologies Neutral 39.34% $710.88M 4.11%
Salesforce Outperform 7.62% $7.56B 2.53%
Intuit Outperform 15.10% $6.56B 14.81%

Key Takeaway:

SAP ranks at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Get to Know SAP Better

Founded in Germany in 1972 by former IBM employees, SAP is the world's largest provider of enterprise application software. Known as the leader in enterprise resource planning software, SAP's portfolio also includes software for supply chain management, procurement, travel and expense management, and customer relationship management, among others. The company operates in more than 180 countries and has more than 400,000 customers, approximately 80% of which are small to medium-size enterprises.

A Deep Dive into SAP's Financials

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: SAP's remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 12.09%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: SAP's net margin is impressive, surpassing industry averages. With a net margin of 19.75%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 3.91%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): SAP's ROA stands out, surpassing industry averages. With an impressive ROA of 2.38%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: SAP's debt-to-equity ratio is below the industry average at 0.22, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for SAP visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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