SAP(US:SAP) 智通财经网·2025-07-22 23:24Core 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].