FMP

FMP

SAP SE (NYSE:SAP) Quarterly Earnings Preview: A Look at the Future of Enterprise Software

  • Earnings per share (EPS) is estimated at $1.63, aligning with the Zacks Consensus Estimate and indicating a 38% increase from the previous year.
  • Projected revenue for the period is approximately $9.1 billion, with Zacks estimating a higher figure of $10.4 billion, reflecting a 16.47% rise from the prior year.
  • SAP's growth is significantly driven by its cloud ERP segment, which saw a 27% surge in revenues, and its investments in artificial intelligence aiming to boost productivity by 30% by the end of 2025.

SAP SE (NYSE:SAP) is a global leader in enterprise application software, providing solutions that help businesses streamline processes and drive innovation. The company is known for its robust cloud ERP offerings and has been making significant investments in artificial intelligence to enhance its product suite. SAP competes with other major players in the software industry, such as Oracle and Microsoft.

On July 22, 2025, SAP is set to release its quarterly earnings, with Wall Street analysts estimating an earnings per share (EPS) of $1.63. This figure aligns with the Zacks Consensus Estimate, which also anticipates a 38% increase from the previous year. SAP's revenue for this period is projected to be approximately $9.1 billion, although the Zacks estimate suggests a higher figure of $10.4 billion, reflecting a 16.47% rise from the prior year.

SAP's growth is largely driven by its cloud ERP segment, which saw a 27% surge in revenues during the first quarter. The Cloud ERP Suite alone contributed to 85% of total cloud sales. The "RISE with SAP" initiative is expanding with new tools like LeanIX, Signavio, and WalkMe, which are designed to enhance business transformation. These developments are expected to bolster SAP's performance in the upcoming earnings report.

The company is also making significant strides in artificial intelligence, with over 30,000 developers working to boost productivity by 30% by the end of 2025. This focus on AI is part of SAP's strategy to maintain its competitive edge and drive future growth. Over the past year, SAP's shares have rallied by 56.5%, outpacing the broader Computers - Software industry.

SAP's financial metrics provide further insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 53.50, indicating the price investors are willing to pay for each dollar of earnings. Its price-to-sales ratio stands at about 8.72, while the enterprise value to sales ratio is around 8.40. These figures reflect the value placed on SAP's sales and overall valuation. Additionally, SAP's current ratio of 1.17 suggests a reasonable level of liquidity to cover short-term liabilities.