Shares of enterprise software products and solutions provider SAP (NYSE:SAP) are ticking upward today after the company announced first-quarter numbers.
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Revenue rose 9.9% year-over-year to €7.44 billion, outperforming expectations by €50 million. EPS at $1.39 too came in ahead of expectations by $0.19. During the quarter, Cloud revenue surged by 24% with S/4HANA cloud revenue rising by 77%. Further, the Current cloud backlog rose by 25% to €11.15 billion.
Looking ahead, for the full-year 2023, SAP expects Cloud and Software revenue to land between €26.9 billion and €27.4 billion. Additionally, the company expects to generate €4.9 billion in free cash flow for the period.
Overall, the Street has a $142.83 consensus price target on SAP, pointing to a 12.6% potential upside in the stock. That’s on top of a 19.4% gain in the share price over the past year.
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