SAP SE (SAP) FY2025Q2 Earning Prediction

07/22 04:00:00

After Hours

SAP SE (SAP) is set to release its FY2025Q2 earnings performance on 07/22 04:00:00 in After Hours trading. Consensus forecasts predict a revenue of 9.09B and an earnings per share (EPS) of 1.63 for the FY2025Q2. With Intellectia's exclusive AI algorithms, users can predict whether the earnings will beat or miss expectations before the report drops. Leverage this powerful tool to strategize and position your trades ahead of the earnings release!

Estimate

Actual

Surprise

RevenueMISS

9.09B

9.03B

-0.68%

EPSBEAT

1.63

1.70

+4.29%

AI Summary

Attend Webcast

AI Earnings Prediction

Prediction for FY2025Q2

Earnings Date: Jul 22, 2025

SAP is predicted to Beat expectations due to strong cloud adoption and strategic partnerships enhancing revenue and margins.

Beat

Last 0 quarters:

3 beats2 misses

Scenario Analysis

The AI analyzes the probability of each scenario occurring and identifies the triggering conditions.

Scenario

Prob.

Stock Reaction

Trigger Condition

Strong Beat

20%

+8–12%

Cloud revenue growth >30%, backlog growth >35%, and margin expansion >200 bps.

Beat

45%

+3–7%

Cloud revenue growth 26–30%, backlog growth 29–34%, and margin meets guidance.

Neutral

25%

Flat

Metrics align precisely with consensus (unlikely given partnership momentum).

Miss

-4–6%

Macro headwinds delay cloud migrations, backlog growth <25%.

Strong Miss

-10–15%

Severe cloud slowdown (growth <20%) and margin contraction.

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Key Indicators Forecast

The AI provides itemized forecasts for key indicators, potentially including revenue, EPS, gross margin, and free cash flow.

Revenue

EPS

Currency:

No data

Actual

Estimate

Metric

Prediction

Justification

Revenue

Beat

Accelerating cloud adoption via partnerships and AI-driven solutions.

EPS

Beat

Margin improvements from cloud mix shift and cost-efficient implementations.

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Prediction Logic & Rational

Logic & Justification

Fact Data Analysis:

Cloud Revenue Growth & Backlog:

Expansion of strategic partnerships with Capgemini, Mistral AI, Accenture, and DXC Technology focuses on accelerating cloud adoption for mid-sized enterprises and regulated industries. These collaborations simplify cloud migration (via solutions like "RISE with SAP" and "GROW with SAP") and emphasize secure AI use cases, directly targeting SAP's core cloud growth drivers.
Analysts highlight SAP as "one of the fastest-growing cloud segments" in software (Piper Sandler), aligning with sustained demand for cloud services.

Operating Profit Margin:

Piper Sandler notes expectations for "improving margins" due to the cloud mix shift, which typically carries higher margins than legacy software. Partnerships with Accenture and DXC aim to streamline implementations, reducing operational costs.

Free Cash Flow Growth:

Cloud revenue growth (+26% YoY) and margin expansion support cash flow generation. Analysts project 15–20% annual free cash flow growth through 2030 (Piper Sandler).

Cloud Gross Margin:

High cloud gross margins (75%) are likely maintained due to scalable cloud infrastructure and pricing power in regulated/AI-driven use cases (e.g., Mistral AI collaboration).

Key Risks:

Macroeconomic uncertainty (noted by Barclays) could delay cloud migrations, but SAP’s guidance is seen as "achievable" unless conditions worsen significantly.

Prediction Logic & Rational

Tactical Strategy Recommendations

Trading Strategy

Options Play:

Bull Call Spread: Buy July $300 calls / sell $320 calls to capitalize on a moderate Beat scenario.
Hedge: Long puts at $280 as macro hedge (low probability but high-impact tail risk).

Stock: Accumulate shares pre-earnings, as partnerships and cloud momentum suggest upward revisions post-report.

Rationale: The Fact Data heavily supports cloud-driven outperformance, with partnerships and AI integration acting as near-term catalysts. A Beat is priced into options skew but not fully reflected in the stock’s relative underperformance vs. S&P 500.

Tactical Strategy Recommendations

Earnings Surprise Analysis

The chart displays the extent of earnings surprises and corresponding stock price movements for each earnings event.

Revenue

EPS

SAP Transcript

SAP SE (SAP) Presents at UBS Global Technology and AI Conference 2025 Transcript

Neutral12-2

SAP SE (SAP) Presents at Morgan Stanley 25th European Technology, Media & Telecom Conference Transcript

Neutral11-14

SAP SE (SAP) Q3 2025 Earnings Call Transcript

Positive10-22

The earnings call highlights strong cloud revenue growth, AI adoption, and a robust pipeline for H2 2025. Management expressed confidence in Q4 performance, with a focus on execution and cost optimization. Despite some market uncertainties, SAP's strategic partnerships and focus on data quality enhance its competitive position. The Q&A section revealed confidence in revenue acceleration, with strong free cash flow guidance. Overall, these factors contribute to a positive outlook for SAP's stock price in the short term.

SAP SE (SAP) SE Presents At Goldman Sachs Communacopia + Technology Conference 2025 Transcript

Neutral9-9

SAP Slides

SAP Q3 2025 slides: Cloud revenue surges 27% while total revenue misses expectations

2025-10-22

SAP Report

Frequently Asked Questions

What is the SAP SE FY2025Q2 Earnings Release Date and Time?

SAP SE (SAP) is scheduled to release its FY2025Q2 earnings report onJul 22, 2025, After Hours(approximately 4:00 PM ET). This timing allows investors to react during after-hours trading, with a conference call typically following shortly after.

What Are the Consensus Forecasts for SAP SE FY2025Q2 Revenue and EPS?

Analysts' consensus predicts 9.09B in revenue and an EPS of 1.63 for SAP SE's FY2025Q2.

What Does Intellectia's AI Predict for SAP SE FY2025Q2 Earnings?

Intellectia's exclusive AI algorithms forecast a Beat forSAP SE's FY2025Q2 earnings, with a prediction date of Jul 22, 2025. SAP SE SAP is predicted to Beat expectations due to strong cloud adoption and strategic partnerships enhancing revenue and margins.

How Can I Use This Earnings Prediction to Trade SAP Stock?

Leverage Intellectia's AI forecast to position trades ahead of theJul 22, 2025 release—consider calls for a beat scenario or protective puts for misses. Focus on pre-market volatility, and use the scenario probabilities to build strategies around revenue and guidance updates.

How Accurate Is Intellectia's AI for Earnings Predictions Like SAP SE FY2025Q2?

Intellectia's predictions are backed by rigorous backtesting, showing a high hit rate for Beat and Miss calls compared to traditional analysis. While no forecast is 100% certain, we provide probability-based scenarios (e.g., 50% chance of a *Beat*) and detailed rationales to help you make informed decisions. Combine our insights with your strategy for the best results—it's like having a co-pilot for earnings season! Empowering users to strategize trades before reports drop.

How does AI Earnings Prediction generate its forecasts?

AI Earnings Prediction uses advanced Large Language Models (LLMs) to analyze a wealth of data, including past earnings transcripts, real-time market sentiment, analyst insights, and company news from the last three months. It focuses on key indicators like revenue, EPS, and margins to predict whether a company will *Beat*, *Miss*, or remain Neutral relative to market expectations. Think of it as a super-smart analyst crunching numbers and news 24/7 to give you a trading edge!

When are the predictions available, and how often are they updated?

Predictions are generated two days before a company’s earnings release (e.g., 5:00 PM ET on Feb 13 for a Feb 15 report) to capture the latest market and company data. They’re updated in real-time if significant news breaks, ensuring you get fresh insights.

Can I use AI Earnings Prediction for all types of stocks?

Currently, AI Earnings Prediction focuses on companies with market caps above $40 billion, covering major players like SPG, AAPL, MSFT, and NVDA for the 2024-2025 earnings seasons. We prioritize high-impact stocks with robust data to ensure reliable forecasts. Stay tuned as we expand coverage to more companies based on user demand!