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SAP shares drop as macro uncertainty hits client confidence

German software giant SAP posted stronger-than-expected profits for its second quarter, but cloud revenues came in shy of analysts' estimates amid fears that global trade uncertainty was causing clients to delay spend.

  • Sap AG
  • 23 July 2025 10:36:14
SAP SE

Source: Sharecast

In an earnings call with analysts, the company said that public-sector clients in the US and manufacturing firms exposed to higher tariffs were showing caution in regards to cloud investments.

Total revenues were up 9% year-on-year at €9.03bn, under the €9.09bn expected by the market, with a 24% jump in cloud revenues to €5.13bn not enough to meet the €5.18bn pencilled in by analysts.

However, operating profits more than doubled to €2.46bn from €1.22bn the year before, ahead of the €2.43bn consensus forecast.

SAP reiterated its guidance for 2025, forecasting 26-28% constant-currency growth in cloud revenues to €21.6bn-21.9bn and operating profit growth of 26-30% to €10.3bn-10.6bn.

“As we move into the second half, we remain cautiously optimistic, keeping a close eye on geopolitical developments and public sector trends,” said chief financial officer Dominik Asam.

The stock was down 3.1% at €251.50 by 1103 CEST.

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