Movement Alert|SAP SE Rises 6.22% in Pre-Market Trading, Q2 Cloud Revenue Up 22% Drives Sentiment Recovery

Market Focus
Jul 24

On July 24, SAP SE rose 6.22% in pre-market trading, trading at $155.25/share, with turnover of $117,000. The stock rebounded following the release of second-quarter earnings after the prior session's close.

SAP reported Q2 total revenue of 9.878 billion euros, up 9% year-over-year and slightly exceeding consensus estimates of 9.85 billion euros. Cloud business revenue grew 22% year-over-year, with current cloud backlog reaching 22.929 billion euros, up 27%. IFRS after-tax profit came in at 2.209 billion euros, up 26% year-over-year, with IFRS basic EPS of 1.89 euros, up 30%. However, non-IFRS EPS of 1.59 euros missed the analyst consensus of 1.75 euros.

Despite the earnings miss on an adjusted basis, the accelerating cloud business growth and strong backlog figures helped restore market confidence. Notably, multiple investment banks had cut target prices ahead of the report — Barclays to $255, UBS from 205 euros to 164 euros, and Wells Fargo from 250 euros to 180 euros — suggesting bearish expectations had already been largely priced in during a stretch of consecutive declines prior to the earnings release.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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