SAP SE (SAP) to Raise Annual Dividend

Core Viewpoint - SAP SE is recognized as a promising investment opportunity, particularly highlighted by its proposed dividend increase and strong revenue growth in its cloud segment [1][2]. Group 1: Dividend Proposal - The Supervisory Board and Executive Board of SAP SE proposed a €0.15 increase in the annual dividend for fiscal year 2025, raising it to €2.50 per share, which is a 6.4% year-over-year increase [1]. - Upon shareholder approval, the total dividend payout will be €2.919 billion, an increase from €2.743 billion in fiscal 2024 [2]. - The payout ratio will decrease to 40.7% from 52.0% in fiscal 2024, aligning with the company's policy to distribute at least 40% of non-IFRS profit after tax [2]. Group 2: Fiscal Q4 2025 Results - SAP SE reported a quarterly revenue growth of 18.46% year-over-year, reaching $11.59 billion, although it fell short of expectations by $66.21 million [3]. - The earnings per share (EPS) of $1.93 exceeded consensus estimates by $0.21 [3]. - The quarterly performance was significantly driven by a 23% year-over-year growth in Cloud revenue and a 28% growth in Cloud ERP Suite revenue [4]. Group 3: Cloud Revenue Performance - Cloud revenue reached €21.023 billion, while Cloud ERP Suite revenue totaled €18.119 billion [4]. - The current Cloud backlog increased to €21.052 billion, reflecting a 16% year-over-year growth [4]. Group 4: Company Overview - SAP SE specializes in developing enterprise application software, primarily focusing on ERP systems that centralize data management and streamline business processes such as finance, supply chain, and HR [5].