SAP: Fundamentals Have Improved And I Reiterate My Buy Rating

  • SAP's strong fundamentals, including early margin expansion and robust cloud growth, reinforce my buy rating despite the stock price decline. 1Q25 results show 11% y/y revenue growth, 58% y/y adjusted EBIT growth, and a 36% y/y increase in free cash flow. Cloud ERP Suite's 33% y/y growth and significant new customer wins highlight SAP's successful strategy and strong future growth visibility.