SAP Posts Higher 1Q Revenue, Operating Profit

By Paul Ziobro

SAP reported higher revenue and operating profit for the first quarter and confirmed its guidance for the year.

Reporting on a non-IFRS basis, the German business-software company said total revenue rose 6% to 9.56 billion euros ($11.19 billion) from the prior-year period. Sales from SAP's core cloud business increased 19% to $5.96 billion euros.

Net income rose to 1.95 billion euros from nearly 1.8 billion euros. Operating profit--a closely watched metric for software companies--rose to 2.74 billion euros from 2.33 billion euros.

Analysts had forecast total revenue of 9.53 billion euros, cloud revenue of 5.88 billion euros and an operating profit of 2.71 billion euros, according to a non-IFRS consensus provided by the company.

SAP, like other European software companies, presents its figures as two sets of numbers. One set is based on the International Financial Reporting Standards--an international accounting method that seeks to provide a global reporting standard--though analysts and investors tend to follow SAP's non-IFRS numbers, which exclude restructuring expenses and acquisition-related charges.

For the year, SAP continues to expect non-IFRS operating profit between 11.9 billion euros and 12.3 billion euros, cloud revenue of 25.8 billion euros to 26.2 billion euros and free cash flow of roughly 10 billion euros.

Write to Paul Ziobro at [e-mail]

(END) Dow Jones Newswires

04-23-26 1703ET