Software giant SAP’s shares surge 9.3% after first-quarter profit beat

SAP on Wednesday posted a 58% year-on-year jump in first-quarter operating profit in constant currency, also confirming its outlook for full-year cloud revenues.

SAP's operating profit hit 2.5 billion euros ($2.9 billion) in the first quarter, compared with analysts expectations near 2.2 billion euros, according to LSEG data.

Shares of the company popped 9.3% by 8:59 a.m. in London on Wednesday.

The German software giant, which last month overtook Novo Nordisk to become Europe's most valuable public company, said revenue had jumped 11% to 9 billion euros, with its cloud backlog up 29% year-on-year. Earnings per share jumped 79% on an annual basis to 1.44 euros.

SAP CEO Christian Klein said in a statement that the results showed "our success formula is working."

"SAP's business model remains resilient in uncertain times," he said. "Our AI-powered portfolio enables companies to navigate supply chain disruptions in over 130 countries and to unlock efficiencies with agility and speed."

This breaking news story is being updated.