Core Insights - SAP has announced an agreement to acquire SmartRecruiters, enhancing its SuccessFactors human capital management suite with SmartRecruiters' expertise in talent acquisition [1][3] - The acquisition aims to improve decision-making, reduce time-to-hire, and enhance candidate experience through user-friendly interfaces and AI-driven analytics [2][3] Company Overview - SmartRecruiters, founded in 2010, provides a Software-as-a-Service platform that supports over 4,000 organizations globally in managing their hiring workflows [4][6] - The company’s solutions are designed to automate and optimize the talent acquisition process, benefiting major clients like Amazon, Visa, and McDonald's [6] Strategic Implications - The acquisition is expected to allow customers to manage the entire candidate lifecycle within a single system, streamlining operations for recruiters and hiring managers [3][4] - Enhanced AI-enabled recruiting capabilities will provide data-driven insights into hiring processes, contributing to a more efficient recruitment strategy [3][5] Transaction Details - The transaction is anticipated to close in the fourth quarter of 2025, pending regulatory approvals, with terms not disclosed [5]

Customers can expect enhanced and AI-enabled recruiting and hiring capabilities, making applicant tracking and candidate screening more efficient. Data-driven hiring and recruitment analytics will flow directly into SAP's existing HCM tools, providing a single system of record and harmonized data for compliant, seamless operations. The SmartRecruiters portfolio will also continue to be available standalone for the foreseeable future. SmartRecruiters' Software-as-a-Service solutions and platform enable more ...

Core Insights - SAP SE reported a strong second-quarter 2025 performance with non-IFRS earnings per share of €1.50 ($1.70), a 37% increase year-over-year, although it fell short of the Zacks Consensus Estimate of $1.63 [1] - Total revenues on a non-IFRS basis reached €9.03 billion ($10.24 billion), marking a 9% year-over-year increase, but also below the Zacks Consensus Estimate of $10.37 billion [1] - The company's cloud revenue surged by 24% year-over-year, driven by robust growth in Cloud ERP Suite revenues [5][8] Financial Performance - Non-IFRS operating profit rose 32% to €2.57 billion, with a margin increase to 28.5%, attributed to improved operational efficiency and cost controls [13] - Non-IFRS gross profit increased 10% to €6.64 billion, with cloud gross profit rising 27% to €3.86 billion [12] - Free cash flow increased significantly by 83% to €2.36 billion during the quarter, indicating strong operational strength [14] Cloud Business Growth - The current cloud backlog surged 22% to €18.1 billion, a key indicator of market success [4] - Cloud revenues reached €5.13 billion, with a notable 30% growth in Cloud ERP Suite revenues [5] - The cloud and software segment accounted for 88.2% of total revenues, generating €7.97 billion, an 11% year-over-year increase [4] Strategic Initiatives - SAP's investment in AI and data platforms is yielding positive results, with the AI assistant Joule enhancing process efficiency and user productivity [2] - The "RISE with SAP" program continues to attract global organizations, indicating strong client adoption [7] - The company initiated a transformation program in January 2024, concluding in Q1 2025, aimed at enhancing operational scalability [16] Customer Engagement - Significant customer wins were reported, including partnerships with major organizations such as Accenture, BMW Group, and L'Oréal [10] - The cloud revenue growth was particularly strong in the APJ and EMEA regions, with standout performances in countries like Brazil, France, and India [11] Future Outlook - SAP reaffirmed its 2025 financial outlook, anticipating cloud revenues between €21.6-€21.9 billion, representing a year-over-year increase of 26-28% [17] - Cloud and software revenues are expected to be in the range of €33.1-€33.6 billion, with a projected increase of 11-13% year-over-year [18] - Free cash flow is estimated to reach around €8 billion, a significant rise from €4.22 billion in 2024 [19]

Group 1: Texas Instruments - Texas Instruments reported quarterly earnings of $1.41 per share, exceeding the analyst consensus estimate of $1.33 per share [1] - The company reported quarterly sales of $4.448 billion, surpassing the analyst consensus estimate of $4.329 billion [1] - Shares of Texas Instruments fell sharply by 12% to $189.15 in pre-market trading following the earnings report [2] Group 2: Other Companies - Telix Pharmaceuticals Limited shares fell 7.9% to $15.00 in pre-market trading after issuing an update on its commercial and operational performance [4] - Enphase Energy, Inc. shares decreased by 7.5% to $39.32 despite posting upbeat second-quarter earnings, as the company anticipates third-quarter revenue of $330 million to $370 million, below estimates of $363.25 million [4] - ON Semiconductor Corporation shares fell 6.3% to $58.50 in pre-market trading after a previous gain of 3% on Tuesday [4] - Microchip Technology Incorporated shares dipped 6.2% to $70.60 in pre-market trading [4] - Analog Devices, Inc. shares fell 5% to $223.78 in pre-market trading [4] - NXP Semiconductors N.V. shares declined 4.8% to $216.82 following the release of quarterly results [4] - Canadian National Railway Company shares fell 4.6% to $95.71 after downbeat quarterly results [4] - SAP SE shares decreased by 4.3% to $292.92 following second-quarter results [4]

SAP reported second-quarter profits that topped analysts’ estimates, though cloud revenue came in lower than expected as growth slowed. https://t.co/iJqWbpFPp1 ...

.BBKA A person holds a smartphone displaying the logo of SAP, a German multinational software corporation known for its enterprise resource planning solutions. Cheng Xin | Getty Images News | Getty Images In this article SAP in March became Europe's biggest listed company, overtaking French luxury group LVMH and Ozempic- maker Novo Nordisk in market capitalization, after pivoting the business firstly toward cloud computing and then toward opportunities in artificial intelligence. SAP now brings in the major ...

SAP SE Chief Executive Officer Christian Klein discusses the company's performance as cloud and software revenue increased 11% to €7.97 billion ($9.4 billion) in the period ended June 30. He also discusses tariff uncertainty and demand for artificial intelligence. Klein speaks on Bloomberg Television. 00:00 - SAP CEO Christian Klein on earnings 01:13 - Tariff, trade uncertainty 03:51 - Weaker USD impact on SAP, business, pipeline 05:20 - AI demand, deals, business AI surge in 2026 -------- More on Bloomberg ...

Core Viewpoint - SAP SE reported strong financial results with significant growth in operating profit and free cash flow, despite facing challenges from currency fluctuations and slightly lower-than-expected cloud and software revenue growth [1][2]. Financial Performance - Operating profit (non-IFRS) increased to €2.568 billion, and free cash flow improved significantly to €2.357 billion, representing an 83% year-over-year growth [1]. - Basic earnings per share (IFRS) grew by 91% to €1.45, while diluted earnings per share increased by 92% to €1.44 [1]. Revenue Insights - Cloud and software revenue grew by 11% year-over-year to €7.97 billion (approximately $9.4 billion), slightly below analyst expectations of €7.99 billion [1]. - On a constant currency basis, cloud revenue increased by 24% to €5.13 billion, still falling short of market expectations [2]. Market Position and Challenges - SAP's stock price has risen by 40% over the past year, surpassing ASML to become the highest-valued company in Europe [2]. - The company generates over 30% of its sales from the U.S. market, making it vulnerable to the impacts of a weaker dollar [2]. Future Outlook - The backlog of cloud business orders increased to €18.1 billion, but fell short of the €18.5 billion forecasted by analysts [2]. - Management warned of a potential slowdown in the growth of cloud business backlog in 2025 [2]. - CFO emphasized the need to monitor geopolitical conditions and public sector demand trends closely [1].

Financial Data and Key Metrics Changes - In Q2, cloud revenue rose by 28%, marking an increase of two percentage points compared to Q1 [7][28] - Total revenue growth accelerated to 12% [8][34] - Current cloud backlog grew by 28% in Q2, reaching €18.1 billion [28][34] - Operating profit surged by 35%, reflecting improvements in the cost base due to the transformation program [9][33] - Non-IFRS operating profit increased to €2.6 billion [34] Business Line Data and Key Metrics Changes - The Cloud ERP suite continued to drive growth, achieving 34% growth in Q2, representing 86% of total cloud revenue [29][34] - Software licenses revenue decreased by 13% in Q2, aligning with the company's strategy to transition to cloud-based models [31][34] Market Data and Key Metrics Changes - Cloud revenue performance was particularly strong in the APJ and EMEA regions, with notable performances in Brazil, Chile, France, India, Italy, South Korea, and Spain [32][34] - The Americas showed solid performance, although specific figures were not disclosed [32] Company Strategy and Development Direction - The company is focusing on product innovation and increasing productivity through business AI [6][25] - SAP aims to strengthen its portfolio with data and AI innovations while maintaining cost discipline [26][35] - The partnership with Alibaba is expected to enhance market potential in China, targeting both existing and new customers [10][61] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing uncertainty in global markets but expressed confidence in the company's pipeline for the second half of the year [6][30] - The company is preparing for less favorable outcomes by focusing on elements within its control to protect its bottom line and free cash flow [31][35] - Management remains optimistic about sustaining momentum and closing the year strongly despite macroeconomic volatility [35] Other Important Information - The company released its first 14 AI agents in the first half of the year, with plans to increase this number to 40 by year-end [19][20] - The non-IFRS cloud gross margin expanded by 1.8 percentage points to 75.2% [33] Q&A Session Summary Question: Insights on operating margin and EBIT growth for the second half - Management highlighted that the strong performance in operating profit was partly due to a €331 million improvement in stock-based compensation, which is expected to have easier comparisons in the first half [42][44] Question: Long-term sustainability of margin improvements - Management expressed confidence in maintaining operating leverage ratios of 80-90% for the coming years, despite some continuous adjustments in workforce [54][56] Question: Details on the Alibaba partnership and its impact - The partnership aims to enhance SAP's presence in China, focusing on both large enterprises and the upper mid-market [61][62] Question: Impact of transformation credits on cash flow - Transformation credits are amortized over the term of the deal, and while they may create initial cash conversion challenges, they are neutral over the life of the transaction [68][70] Question: Demand impact on CCB and cloud revenue - Management noted that while there is a slight deceleration expected, the pipeline coverage remains strong, and customers are responding positively to business cases [80][100]

Financial Data and Key Metrics Changes - In Q2 2025, cloud revenue rose by 28%, an increase of two percentage points compared to Q1 2025 [8][27] - Total revenue growth accelerated to 12%, reaching €9 billion [9][33] - Operating profit surged by 35%, reflecting improvements in the cost base due to transformation programs [9][32] - Current cloud backlog grew by 28% to €18.1 billion [27][33] - Non-IFRS cloud gross margin expanded by 1.8 percentage points to 75.2% [32] Business Line Data and Key Metrics Changes - The Cloud ERP suite continued to drive growth, achieving 34% growth in Q2, representing 86% of total cloud revenue [27][32] - Software licenses revenue decreased by 13% in Q2, aligning with the company's strategy to transition customers to cloud solutions [30] Market Data and Key Metrics Changes - Cloud revenue performance was particularly strong in the APJ and EMEA regions, with notable performances in Brazil, Chile, France, India, Italy, South Korea, and Spain [31] - The US public sector and manufacturing sectors experienced elongated sales cycles due to geopolitical uncertainties [28][30] Company Strategy and Development Direction - The company is focusing on product innovation and increasing productivity through business AI [7][25] - SAP aims to strengthen its portfolio with data and AI innovations while maintaining cost discipline [25][34] - The partnership with Alibaba is expected to enhance market penetration in China, targeting both large enterprises and the upper mid-market [10][60] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing uncertainty in global markets but expressed confidence in the company's pipeline for the second half of the year [7][34] - The company is preparing for potential less favorable outcomes by focusing on elements within its control to protect its bottom line [30] - Management remains optimistic about sustaining momentum and closing the year strongly despite macroeconomic volatility [34] Other Important Information - The company has released over 100 pre-built SAP managed data products, with plans to double that by year-end [21] - The internal adoption of business AI is expected to further enhance productivity and operational efficiency [22][24] Q&A Session Summary Question: Insights on operating margin and EBIT growth for the second half of the year - Management highlighted that the strong performance in the first half was significantly influenced by a €331 million improvement in stock-based compensation, which is expected to normalize in the second half [41][42] Question: Long-term sustainability of margin improvements - Management expressed confidence in maintaining operating leverage ratios between 80% to 90% for the coming years, despite potential fluctuations in expenses [52][53] Question: Details on the Alibaba partnership and its impact - The partnership aims to leverage Alibaba's presence in China to enhance SAP's cloud offerings, targeting both multinational companies and local tech firms [60][63] Question: Impact of macroeconomic factors on demand - Management noted that elongated deal cycles are primarily due to stricter cost controls in certain industries, but emphasized that the pipeline remains strong [97][100] Question: Cash flow and transformation credits - Management explained that transformation credits are amortized over the term of deals and do not significantly impact cash conversion in the long term [66][67]