On April 1, 2025, SAP SE shares saw a notable rise following positive quarterly results reported by its U.S. competitor, Progress Software. The increase in SAP's stock was fueled by Progress Software’s impressive performance, which reported a staggering 29 percent increase in sales, reaching 238 million dollars for the first quarter of 2025, surpassing analyst predictions of 235.6 million dollars. Additionally, Progress Software's earnings per share reached 1.31 dollars, significantly higher than the expected 1.06 dollars. Despite a decline in net profit from 22.6 million dollars in the previous year to 10.9 million dollars, the company raised its annual profit forecast, signaling a robust market environment that could benefit SAP as well.
SAP, a major player in the enterprise software sector, focuses on resource management, planning, supply chains, and customer relationships. In contrast, Progress Software specializes in application development, database technologies, and middleware solutions, including their OpenEdge platform, which integrates applications and systems. Both companies are heavily investing in artificial intelligence, aiming to maintain their competitive edge in the evolving tech landscape.
However, the optimism surrounding SAP's stock was tempered by a recent correction of twelve percent over the preceding weeks. Investors are now looking forward to SAP's upcoming financial results, set to be released on April 22, 2025, hoping they will provide new momentum for the stock.
Despite the positive news from Progress Software, SAP shares faced challenges on April 3, 2025, as they were among the day's losers, dropping 2.9 percent to 242.00 euros during the XETRA trading session. The stock had previously reached a 52-week high of 283.50 euros on February 19, 2025, but has since seen a decline. The decline was particularly evident as the stock fell from an opening value of 245.85 euros, hitting a day low of 241.70 euros.
Market analysts noted that the recent downward trend in SAP’s stock could be a concern. The company’s stock price is currently 12.91 percent below its 52-week high and is also significantly above its 52-week low of 161.77 euros. In the context of the DAX index, which was down 1.38 percent overall, SAP's performance has placed it in the middle third of the index.
In a broader market context, concerns over U.S. trade policies have contributed to the volatility in European markets, as highlighted by recent reactions to new tariff announcements from U.S. President Donald Trump. The uncertainty surrounding these policies has led to a cautious approach among investors across Europe, impacting stocks like SAP.
Despite the recent fluctuations, SAP's market capitalization remains robust, currently valued at 304 billion euros, making it the most valuable stock corporation in Europe, surpassing the Danish pharmaceutical giant Novo Nordisk. This significant milestone reflects SAP's strong position in the market, although the stock's recent performance has raised questions about its immediate future.
Investors are closely monitoring the stock’s movements, particularly the critical support levels. The stock had a brief recovery to nearly 260 euros before retreating again, indicating potential instability. Analysts are keeping an eye on the 50-day moving average (SMA50), which is seen as a key indicator for short-term trends. If SAP shares fall below the recent low of 235 euros, it may trigger further declines, potentially leading to corrections towards the 200-day moving average (SMA200) currently positioned at 223.60 euros.
Despite these challenges, over 70 percent of analysts covering SAP recommend buying the stock, with an average price target of 281.80 euros, suggesting an upside potential of nearly 14 percent. A bullish price trigger could occur if the stock surpasses recent highs of 259.70 euros and the SMA50 at 261.68 euros, which could lead to further gains.
In the fiscal year ending December 2022, SAP reported impressive figures, with sales totaling 30.90 billion euros and a profit of 7.10 billion euros. For 2024, shareholders enjoyed a dividend of 2.35 euros per share, with projections for a slight increase to 2.38 euros in the upcoming year. Analysts predict that SAP will report earnings per share of 6.27 euros in 2025, reflecting continued confidence in the company’s long-term growth potential.
As SAP prepares to release its first-quarter results later this month, the market will be watching closely to see if the company can leverage the positive sentiment generated by Progress Software’s performance and stabilize its own stock amid the current market volatility. The upcoming financial disclosures will be crucial in determining the future trajectory of SAP's stock and its ability to regain momentum in the competitive landscape of enterprise software.
