By Angela Palumbo
Analysts expect SAP to report double-digit earnings growth and strong revenue gains for its second-quarter tonight, as the German software company remains focused on artificial intelligence and transitioning clients to the cloud.
SAP is scheduled to report financial results after the stock market closes on Tuesday. Analysts surveyed by FactSet expect the enterprise software giant will report earnings of EUR1.42 a share, which is a 29% increase from the EUR1.10 a share reported in the same period last year.
Revenue for the quarter is expected to be EUR9.02 billion, an 8.8% increase from last year's EUR8.29 billion.
American depositary receipts of SAP have jumped 25% this year, outperforming the S&P 500's 7.5% gain. Investors have confidence in the company's ability to grow revenue as it uses its AI and cloud offerings to businesses to improve efficiency and productivity in a time of economic uncertainty.
There is concern that President Donald Trump's tariffs will cause enterprises to cut back on IT spending as costs rise. That would hurt software companies like SAP. Investors will want to know if there's any signs of a spending pull back, especially as SAP kicks off software earnings season.
Alphabet and ServiceNow second-quarter earnings are on deck for July 23, while Microsoft is scheduled to report fourth-quarter financials on July 30.
Write to Angela Palumbo at angela.palumbo@dowjones.com
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July 22, 2025 02:00 ET (06:00 GMT)
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