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SAP's 2Q24 results show strong revenue growth of 10% on a constant currency basis, driven by solid cloud revenue growth and AI adoption. Margins are improving with EBIT margin increasing from 19.1% to 23.4%. Target price for SAP is EUR309 based on FY26 estimates, with expectations of low-teens growth fueled by cloud revenue momentum and AI adoption.

SAP's Q2 2024 performance benefits from continued strength in its cloud business coupled with AI-driven strategic transformation initiatives.

The German giant bucked a trend of downbeat reports from the sector as it raised profit guidance.

Shares in SAP rose as much as 7% to reach an all-time high on Tuesday after Europe's largest software maker reported better-than-expected quarterly operating income, buoyed by revenue growth and intensified cost-cutting.

Seven months after launching an artificial intelligence (AI)-focused restructuring program, SAP said Monday (July 22) that it has raised its 2025 operating profit ambition to reflect the efficiency gains it expects to see from that program.

SAP SE (NYSE:SAP ) Q2 2024 Earnings Conference Call July 22, 2024 5:00 PM ET Company Participants Alexandra Steiger - Global Head of Investor Relations Christian Klein - Chief Executive Officer Dominik Asam - Chief Financial Officer Conference Call Participants Mark Moerdler - Sanford C. Bernstein & Co. LLC Adam Wood - Morgan Stanley Michael Briest - UBS Limited Mohammed Moawalla - Goldman Sachs Jackson Ader - KeyBanc Capital Markets Toby Ogg - JPMorgan Charles Brennan - Jefferies Frederic Boulan - Bank of America Sven Merkt - Barclays Capital Balajee Tirupati - Citi Investment Research Ben Castillo-Bernaus - Exane BNP Paribas Johannes Schaller - Deutsche Bank Operator Ladies and gentlemen, thank you for standing by.

Europe's largest software maker SAP reported a 25% jump in second-quarter cloud revenue to 4.15 billion euros ($4.52 billion) on Monday, helped by demand for its business planning software.

Current cloud backlog of €14.8 billion, up 28%, both at nominal and constant currencies Cloud revenue up 25%, underpinned by 33% Cloud ERP Suite revenue growth, all at nominal and constant currencies Total revenue up 10%, both at nominal and constant currencies IFRS cloud gross profit up 29%, non-IFRS cloud gross profit up 28% and up 29% at constant currencies IFRS operating profit down 11% due to restructuring expenses of €0.6 billion. Non-IFRS operating profit up 33% and up 35% at constant currencies 2024 financial outlook reiterated.

SAP's second-quarter performance is expected to have been cushioned by steady momentum in cloud business amid prevailing global macroeconomic challenges.

Amsterdam - HERE Technologies, the leading location data and technology platform, today announced the integration of HERE Matrix Routing with SAP's AI-enabled Field Service Management solution to power predictive routing functionalities. As a result, enterprises utilizing SAP Field Service Management can benefit from enhanced efficiency, a reduction in costs, a more sustainable way of working, and an improved customer experience in their management of job assignments for service workers. Unlocking new levels of efficiency, cost savings and sustainability while enhancing the customer experience SAP Field Service Management optimizes and streamlines field service operations. The solution provides businesses with the tools to manage their field service workforce efficiently, ensuring that technicians are effectively and swiftly deployed to perform maintenance, repairs, installations, and other service-related tasks. The integration of the HERE Matrix Routing API brings more advanced, hig