SAP’s first-quarter fiscal results came in below expectations, with adjusted earnings of €0.81 per share and revenue of €8.04 billion. These figures fell short of estimates of €1.04 and €8.03 billion, respectively. Despite a 24% year-over-year rise in cloud revenue to €3.93 billion, the overall results were dampened by the implementation of SAP’s transformation program, which involves significant investments in artificial intelligence (AI) initiatives.
The company acknowledged the weaker results but emphasized its commitment to its long-term transformation. SAP reiterated its 2024 forecast, expecting cloud revenue to reach €17.0B to 17.3B and adjusted operating profit to fall between €7.6 and €7.9 billion. Furthermore, SAP declared a dividend of €2.20 per share for fiscal year 2023, representing a 7% increase from the previous year’s dividend.
SAP’s stock price declined by 0.4% in after-hours trading following the earnings report. The results reflect the company’s ongoing transition and the challenges associated with integrating AI into its operations. Investors will be closely monitoring SAP’s progress in the coming quarters as it navigates this important strategic shift.
