Published by Global Banking & Finance Review®
Posted on July 23, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on GoogleSAP shares fell 3.9% as the company maintained its 2023 outlook despite reporting strong quarterly sales and earnings. The unchanged forecast disappointed some investors.
By Hakan Ersen and Rachel More
BERLIN (Reuters) -Shares in SAP fell on Wednesday after the German software maker reported higher quarterly sales and earnings but held off on increasing full-year targets, which some investors had expected.
SAP shares were down by 3.9% at 0730 GMT, after the company late on Tuesday reported higher sales, profitability and free cash flow in the second quarter, but maintained its outlook, citing "elevated levels of uncertainty and reduced visibility".
"As we move into the second half, we remain cautiously optimistic, keeping a close eye on geopolitical developments and public sector trends," finance chief Dominik Asam said in the quarterly report.
SAP still forecasts full-year operating profit in the range of 10.3 billion to 10.6 billion euros ($12.44 billion), compared to 8.15 billion a year ago.
Deutsche Bank analysts said the reiterated targets left a margin for error as uncertainty surrounding Washington's tariffs slows decision-making among U.S. customers.
For the second quarter, SAP reported an 83% year-on-year jump in its free cash flow, used to determine dividends to investors, to 2.36 billion euros, exceeding market expectations by about a billion.
Operating profit rose by around a third to 2.57 billion euros, boosted by the company's 2024 restructuring programme, which it concluded in the first quarter.
SAP announced the 2-billion-euro pivot towards artificial intelligence last year, either retraining employees or replacing them through voluntary redundancies.
But some traders said results were still driven by SAP's old licences business.
"The future cloud biz lagged expectations, giving the report a sour tone. Also, the outlook was just confirmed sending a somewhat cautious note," one local trader said.
(Editing by Thomas Seythal and Tomasz Janowski)
SAP reported an 83% year-on-year jump in its free cash flow to 2.36 billion euros, exceeding market expectations by about a billion.
Shares in SAP fell by 3.9% as the company maintained its full-year targets, which some investors viewed as cautious amid geopolitical uncertainties.
SAP forecasts a full-year operating profit in the range of 10.3 billion to 10.6 billion euros, compared to 8.15 billion a year ago.
SAP's finance chief cited elevated geopolitical developments and public sector trends as factors influencing their cautious outlook for the second half.
Operating profit rose by around a third to 2.57 billion euros, boosted by the company's 2024 restructuring program, which was concluded in the first quarter.
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