German business software maker SAP AG (SAP) on Wednesday reported a 10 percent increase in profit for the first quarter, and reiterated its full year outlook.
"We see strong momentum for our flagship in-memory platform SAP HANA, our cloud and mobile solutions, and our core applications and analytics products," said Bill McDermott and Jim Hagemann Snabe, Co-CEOs, SAP.
On the basis of International Financial Reporting Standards, SAP's profit attributable to owners of parent increased to 444 million euros ($587 million) or 0.37 euros per share from 403 million euros or 0.34 euros per share in the year-ago quarter.
Non-IFRS profit attributable to owners of parent rose to 583 million euros from 528 million euros in the prior year.
Total IFRS revenue for the three-month period improved to 3.35 billion euros from 3.02 billion euros in the previous year.
Software and software-related service revenue increased 13 percent to 2.62 billion euros with a 14 percent growth in Support revenue. Software revenue advanced 4 percent.
Cloud subscriptions and support revenues surged to 29 million euros from 4 million euros.
Non-IFRS revenue climbed to 3.36 billion euros from 3.04 billion euros in the prior year. Software and Software-related service revenue advanced 12 percent to 2.63 billion euros.
Werner Brandt, CFO of SAP, said, "We reported our ninth consecutive quarter of double-digit growth in non-IFRS software and software-related service revenue, with a strong contribution from SuccessFactors to our cloud business."
Looking ahead to the second quarter, SAP expects software revenue to increase in a range of 15 percent to 20 percent at constant currencies, compared to 838 million euros generated last year. The company also expects non-IFRS software and software-related service revenue to increase in a range of 14 percent to 16 percent at constant currencies from last year's 2.59 billion euros.
Further, SAP reiterated its forecast for the year. The company expects full-year non-IFRS software and software-related service revenue to increase in a range of 10 percent to 12 percent at constant currencies. Also, the company expects non-IFRS operating profit to be in a range of 5.05 billion euros to 5.25 billion euros at constant currencies.
SAP is currently falling 0.47 percent at 49.06 euros on a volume of 1.52 million shares.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.