Several companies have recently angered their employees. How so? They want more in-person work days. Among others, there was stress at SAP because of this. But what is the overall state of the company and its stock? We have done the check for you. With over 400,000 customers, SAP is the world’s leading provider of e-business software solutions that integrate processes within and across companies. The core of the product range is SAP S/4HANA, a comprehensive e-business platform for optimal integration of all relevant business processes over the internet, which consists of a package of software and services.

It’s the numbers that count SAP stayed on course in the third quarter. In local currencies, sales increased by 9%. In the reporting currency, SAP achieved a 3% increase due to unfavorable exchange rate effects. The operating profit increased by 11% due to a decrease in fixed costs. At the bottom line, SAP earned 1.3 billion euros, almost twice as much as the previous year, thanks to an improved financial result.

In the first 9 months, SAP achieved a profit of 4.8 billion euros, which exceeded our expectations. According to CEO C. Klein, the numbers prove that SAP has entered a new phase of growth. The growth with cloud services has accelerated significantly, which is increasingly reflected positively in profitability after high initial expenses. With a focus on innovations based on artificial intelligence, SAP sees itself very well prepared for further growth despite the economic headwinds. By 2025, revenue is expected to reach 37.5 billion euros.

More good reasons for the stock The sale of Qualtrics with annual sales of 1.4 billion euros is included in this forecast. SAP plans to have a free cash flow of 7.5 billion euros by 2025. Shareholders can also look forward to a share buyback program of 5 billion euros. In addition, we see room for growth in the dividend due to strong cash flow and a solid balance sheet.

Furthermore, the business was strengthened with the acquisition of LeanIX. LeanIX is a market leader in the field of enterprise architecture management. The software-as-a-service solutions from LeanIX enable companies to visualize the transition to their target IT architecture. The stock remains promising. The dividend is a small but nice bonus!