SAP, the German software giant, is set to report its third quarter 2024 earnings on October 21. The company’s performance and outlook will be closely watched by investors, as it could provide significant insights into the broader tech sector’s trajectory, especially in a period marked by economic uncertainty. The Zacks Consensus Estimate for SAP’s third-quarter earnings has been revised 0.8% downward over the past 60 days and is pegged at $1.31 per share, suggesting a 17.1% decline from the year-ago actual.
The consensus estimate for revenues is currently pegged at $9.26 billion, indicating a 9.9% uptick from the year-ago actual. SAP’s performance is expected to have benefited from a steady momentum in its cloud business, with the rapid adoption of the “Rise with SAP” and “Grow with SAP” solutions being major drivers. The increasing adoption of these solutions, along with the opportunities presented by Business AI, are likely to have aided SAP’s top-line performance.
However, the company’s performance may be affected by continued softness in the software license and support business segment, coupled with global macroeconomic weakness and geopolitical instability. Additionally, increasing research and development costs and competition in the cloud space are concerns.
Sap earnings reflect shifting tech trends
On Sept. 12, 2024, SAP acquired Israel-based WalkMe Ltd. for $1.5 billion.
WalkMe specializes in digital adoption platforms that enhance and speed up digital transformation strategies by promoting user adoption of digital assets. SAP CEO Christian Klein and CFO Dominik Asam will host a virtual analyst conference to present Q3 financial figures, as well as an outlook on the current financial year. Media representatives may listen in on the conference at 11:00 p.m. CEST/ 5:00 p.m. ET.
Investors and analysts will be keenly observing these developments, considering their potential impact on global financial markets. SAP’s upcoming quarterly results are expected to be influenced by its strategic focus on cloud solutions and innovations in AI. While facing challenges in the software license and support segments, the company’s recent acquisitions and partnerships may provide a robust foundation for future growth.
