Stifel believes that SAP once again posted strong Q1 results, despite an uncertain macroeconomic environment. Following this announcement, the analyst confirmed a "buy" recommendation on the stock, leaving his target price unchanged at €300.

The growth momentum of theremained strong at +26% year-on-year (Q4 2024 / Q1 2024: +27% / +25%), with a strong performance from the Cloud ERP suite, up 33% (Q4 2024 / Q1 2024: +35% / +32%), the broker says.

In its report today Stifel highlights that the adjusted operating margin for Q1 was 27.2%, up over 800bp y-o-y and nearly 300bp ahead of the consensus estimate of 24.3%, thanks to solid revenue performance and lower expenses following last year's restructuring program.

"The Cloud gross margin continued to improve to 75.0% (up 250 basis points from the prior year). Q1 FCF was €3,583m, a significant increase from EBITDA of €2,560m, Stifel adds.

SAP confirmed its full-year guidance, including non-IFRS operating profit of €10.3bn to €10.6bn at constant currency.


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