Shares of SAP SE (SAP) surged 7.90% in pre-market trading on Wednesday, April 23, 2025, following the release of the company's impressive first-quarter earnings report after Tuesday's market close.

The German software giant reported non-IFRS earnings of €1.44 ($1.65) per share for Q1 2025, significantly beating the analyst consensus estimate of €1.30. This represents a remarkable 77.8% increase from €0.81 per share in the same period last year. Revenue for the quarter rose to €9.01 billion, up 12% year-over-year from €8.04 billion, slightly missing the analyst forecast of €9.078 billion but still showcasing strong growth.

SAP's stellar performance was primarily driven by robust growth in its cloud business. The company reported a 27% year-over-year increase in cloud revenue, reaching €4.99 billion. The current cloud backlog, a key indicator of future cloud revenue, grew by 28% to €18.2 billion. Additionally, SAP's strategic Cloud ERP Suite saw an impressive 34% growth, further solidifying the company's position in the enterprise software market.

Christian Klein, CEO of SAP, commented on the results, stating, "Q1 once again underlines that our success formula is working. Current cloud backlog expanded 29% at constant currencies and total revenue saw a double-digit increase." The company also reaffirmed its full-year 2025 outlook, projecting cloud revenue growth of 26% to 28% at constant currencies, which has further boosted investor confidence.

The strong quarterly performance, coupled with SAP's optimistic outlook, has clearly resonated with investors, driving the significant pre-market stock price surge. As the company continues to focus on cloud growth and operational efficiency, it appears well-positioned to maintain its competitive edge in the enterprise software landscape.