SAP: What to Expect From Q2 Earnings

Europe’s largest company by market capitalization could be more affected by tariffs than other software companies.

Image courtesy of SAP, Kion Sapountzis

The German software company will announce its financial results for the second quarter of 2025 after the close of trading on July 22.

Key Morningstar Metrics for SAP

Cloud revenue growth and current cloud backlog growth are the most important numbers to watch.
Q1 constant-currency cloud revenue growth was 26%. 2025 guidance is 26%-28%, so Q2 should be at least 26% or better.
Q1 constant-currency cloud backlog growth was 29%. 2025 guidance is for a slight deceleration from 2024 level of 29%, so 27-29% in Q2 would be in-line but below 27% would likely be concerning to the market.
Investors are still looking for potential tariff-related impacts on demand given continued uncertainty, and many of SAP’s customers are manufacturing companies that may be shifting their supply chains.
In Q1, SAP said the pipeline continues to look very solid, so we’ll be looking for any change in tone on the pipeline outlook.
We’ll be watching for commentary on early-uptake of the recently launched SAP Business Data Cloud and partnership with Databricks as SAP asserts this will be critical to their AI offering.

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