Allstream Insiders
SAP Raises 2024 Guidance After Strong Q3 Performance
SAP has raised its full-year guidance for 2024, following a solid third-quarter performance driven by robust growth in cloud revenue. The company now expects adjusted operating profit to land between €7.8 billion and €8.0 billion, an increase from its previous outlook of €7.6 billion to €7.9 billion.
This upward revision comes alongside heightened expectations for cloud and software revenue, now forecasted to hit between €29.5 billion and €29.8 billion—a 10% to 11% increase year-over-year, surpassing the prior range of €29.0 billion to €29.5 billion.
The company’s ADR (NYSE: SAP) jumped over 3% in after-hours trading, reflecting investor optimism after SAP reported adjusted earnings of €1.23 per share on revenue of €8.47 billion for Q3, beating estimates of €1.06 per share. Cloud revenue alone soared by 25% to reach €4.35 billion, highlighting the strong demand for SAP’s cloud solutions.
SAP’s Bright Cloud Outlook
As the company continues to innovate in cloud technology, these figures underline its growing influence in the software and cloud space. SAP’s ability to exceed expectations in a competitive market emphasizes its strong positioning for long-term growth.
Looking Ahead
With cloud and software revenue driving the upward trajectory, SAP is well-positioned for continued success in 2024. Keep an eye on this tech giant as it capitalizes on the growing demand for cloud services.
