SAP Reports Strong Q4 Results Amid Cloud Backlog Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy SAP?
Source: seekingalpha
SAP SE's stock is down 15.89% in pre-market trading, hitting a 52-week low.
Despite reporting strong financial results for FY 2025, including a 19% increase in cloud revenue and a new €10 billion share repurchase program, SAP's current cloud backlog growth fell short of expectations, leading to concerns about future demand. This has overshadowed the positive aspects of their earnings report, resulting in a significant drop in stock price.
The company's strong performance in cloud services and the announcement of a buyback program indicate confidence in its long-term growth, but the missed backlog target raises questions about market conditions and future revenue stability.
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Analyst Views on SAP
Wall Street analysts forecast SAP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SAP is 297.01 USD with a low forecast of 30.28 USD and a high forecast of 401.93 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 197.410
Low
30.28
Averages
297.01
High
401.93
Current: 197.410
Low
30.28
Averages
297.01
High
401.93
About SAP
SAP SE (SAP) is a Germany-based company. The Company provides business application software. It operates through three segments: Applications, Technology and Services, which engages in the sale of software licenses, subscriptions to its cloud-based applications and related services, primarily support services and various professional services, and support services, as well as implementation services for its software products and educational services on the use of its products; the SAP Business Network segment, which includes its cloud-based collaborative business networks and services related to the SAP Business Network, including cloud applications, professional services and educational services, as well as the Company markets and sells cloud offerings developed by SAP Ariba, SAP Fieldglass and Concur; and the Customer Experience segment, which comprises on-premise and cloud-based products that execute front office functions across the entire customer experience.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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