By Mauro Orru

SAP is scheduled to report results for the first quarter on Tuesday. Here is what you need to know:

REVENUE FORECAST: The German business-software group should post total revenue of 9.10 billion euros ($10.37 billion), according to a non-IFRS consensus provided by the company. The forecast represents 13% growth on year.

Analysts expect cloud and software revenue to have climbed 15% to 7.99 billion euros, with cloud revenue up 29% to 5.06 billion euros, according to the same consensus.

SAP analysts and investors tend to follow non-IFRS numbers, which exclude restructuring expenses as well as acquisition-related charges and aren't based on International Financial Reporting Standards.

OPERATING PROFIT FORECAST: The company behind the Concur travel and expense-management platform is expected to report a 45% increase in operating profit to 2.22 billion, generating a 24.5% operating margin.

SAP shares are up more than 35% over the past 12 months. Last month, SAP claimed the top spot as Europe's largest company by market value, dethroning Danish pharmaceutical giant Novo Nordisk.

WHAT TO WATCH:

--Macroeconomic and geopolitical uncertainty stemming from U.S. President Trump's unpredictable tariff policies is top of mind for investors and it is no different for SAP, Citi analysts wrote in a note to clients. SAP isn't immune to the uncertainty, but it is relatively insulated and its earnings are expected to show resilience, they said.

The analysts estimate both revenue and operating margin will be broadly in line with consensus, potentially with minimal impact from elevated uncertainty toward the end of quarter.

--SAP in January lifted its operating profit and sales guidance for the year as it expects strong growth at its core cloud business to accelerate, aided by artificial intelligence.

The company is forecasting non-IFRS operating profit between 10.3 billion and 10.6 billion euros, cloud revenue ranging from 21.6 billion to 21.9 billion euros and free cash flow of roughly 8 billion euros.

Citi analysts expect SAP management to reiterate the 2025 outlook, likely with a watchful tone as current uncertainty could make it harder for the company to hit or exceed the top end of guidance.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

April 17, 2025 05:55 ET (09:55 GMT)

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