-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
SAP reported Q1 non-IFRS EPS of EUR1.72, up 20% and beating consensus by EUR0.06, while revenue of EUR9.56B grew 6% (12% constant currency), exceeding expectations by EUR10M. Cloud revenue of EUR5.96B accelerated to 27% constant currency growth, with Cloud ERP Suite delivering EUR5.21B (+30% constant currency). However, management expects Q2 deceleration due to quarter-specific effects. SAP's cloud momentum signals strong demand with current cloud backlog of EUR21.9B (+25% constant currency). Operating margin expanded to 30.0% from 27.2% in Q1 2025, supported by disciplined cost management. FCF of EUR3.25B was impacted by a EUR408M Teradata settlement but underlying cash generation remains robust. We view the EUR10B share buyback program positively, with EUR2.6B completed in the first tranche. Management reaffirmed 2026 cloud revenue targets of EUR25.8B-EUR26.2B and operating profit of EUR11.9B-EUR12.3B, but adopted a more conservative total revenue growth outlook citing macroeconomic uncertainty.