SAP Stock Climbs as Earnings Shine. Why That’s Good News for IBM and Oracle.
SAP's strong earnings report is a positive sign for the entire enterprise software industry.
Shares of SAP SE (SAP) climbed 6% in premarket trading on Tuesday after the German software company reported better-than-expected fourth-quarter earnings.
The company's revenue rose 11% to €29.64 billion ($33.5 billion) in the quarter, driven by strong demand for its cloud-based software products.
SAP's growth is good news for other enterprise software companies, such as IBM (IBM) and Oracle (ORCL).
This is because SAP is a major player in the enterprise software market, and its success is a sign that the overall market is growing.
In addition, SAP's focus on cloud-based software is a positive sign for IBM and Oracle, as both companies are also investing heavily in this area.
SAP's strong earnings report is a reminder that the enterprise software market is still growing, despite the challenges posed by the COVID-19 pandemic.
The pandemic has caused many businesses to freeze their IT spending, but SAP's results show that there is still strong demand for enterprise software products.
This is good news for IBM and Oracle, as both companies are major players in the enterprise software market.
Here are some of the key takeaways from SAP's earnings report:
- Revenue rose 11% to €29.64 billion ($33.5 billion) in the quarter.
- Cloud revenue rose 27% to €7.88 billion ($8.9 billion) in the quarter.
- SAP raised its full-year guidance for 2023.
SAP's strong earnings report is a positive sign for the entire enterprise software industry.
The company's success is a sign that the overall market is growing, and its focus on cloud-based software is a positive sign for IBM and Oracle, as both companies are also investing heavily in this area.
