SAP Reports Surprising Q1 Profit Amid AI Boom

PARIS, France – German software maker SAP announced on Tuesday that it achieved an adjusted operating profit of 2.5 billion euros ($2.86 billion) for the first quarter of this year, surpassing analysts’ expectations.

Analysts had predicted a quarterly operating profit of approximately 2.22 billion euros after the company recorded a profit of 1.53 billion euros in the same quarter a year earlier, according to a consensus provided by SAP.

In January, SAP forecast its operating profit for 2025 to be between 10.3 billion euros and 10.6 billion euros on a constant currency basis. It also stated that it anticipates cloud revenues will range between 21.6 billion euros and 21.9 billion euros for the entire year.

As Europe’s largest software maker, SAP supplies essential systems for finance, sales, supply chains, and various corporate functions. The current boom in artificial intelligence (AI) is propelling demand for SAP’s cloud-based solutions, and this momentum has energized investor confidence, with shares nearly doubling in value over the past two years.

However, SAP is preparing for the AI era with caution. The company previously indicated that up to 10,000 jobs from its 100,000 total workforce are under review and has projected restructuring costs of around 3 billion euros.

With AI transforming the business landscape, SAP’s proactive approaches may position it well for future growth.