Wall Street is watching closely to see if SAP (NYSE: SAP) continues to deliver on its promise of durable growth and operating leverage. The German software giant is set to report Q2 2025 earnings after the bell today, and expectations are high following a blowout Q1 that saw 15% EPS growth and double-digit cloud expansion.
What to Expect When SAP Reports Q2 2025 Results
Here’s what Wall Street is forecasting for the June quarter:
Revenue: $9.01 billion
EPS (Normalized): $1.67
And for the full year:
FY 2025 Revenue: €37.61 billion
FY 2025 EPS: $7.10
That implies revenue growth of 10.0% and earnings growth of 49.3%, outpacing most global software peers thanks to SAP’s rapid cloud transition and restructuring tailwinds
Key Areas to Watch When SAP Reports Tonight
Here are the key themes investors will be watching:
1. RISE with SAP Migration Velocity
CEO Christian Klein emphasized accelerating cloud migrations via RISE, noting record S/4HANA cloud backlog and a +28% y/y cloud revenue increase. Investors will want evidence that large enterprises continue to move core workloads onto SAP’s cloud stack.
2. GenAI Integration & Monetization Strategy
SAP launched its Joule AI assistant last fall, and GenAI adoption was mentioned in 20+ customer examples last quarter. Investors will look for clarity on monetization, attach rates, and productivity gains driven by embedded AI.
3. Operating Margin Expansion
Q1 delivered a 15% increase in EPS on 9% revenue growth as cloud mix lifted margins. Expect scrutiny on SAP’s ability to continue leveraging efficiency gains from restructuring and mix shift.
4. Demand Commentary for Q3 and FY25
Management guided to improving pipeline conversion and robust backlog in Q1. Any change in tone around deal velocity or macro softness could move the stock.
5. U.S. Cloud Adoption
North America has been a growth engine. Watch for updates on public sector wins and uptake among Fortune 500 firms adopting RISE and Business Technology Platform.
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