TLDR:
SAP ADRs surged to a record high after the software company reported revenue that beat estimates and said it would undertake an artificial intelligence-driven restructuring plan. SAP expects about half a billion euros in incremental efficiency gains to come in 2025.
ADRs of SAP jumped over 7% in intraday trading after the German software company reported revenue that beat estimates and announced an artificial intelligence-driven restructuring plan. SAP will spend around 2 billion euros in 2024 to transform its operational setup and prepare for future revenue growth. The restructuring is expected to affect 8,000 employees, but the company said they will be covered by voluntary leave programs and internal re-skilling measures.
SAP reported revenue of 8.47 billion euros for Q4 2023, up from the same period the previous year, beating analyst estimates. However, operating income was down from Q4 2022, and earnings per share missed expectations.
SAP ADRs were 7.4% higher following the restructuring news and have gained over 50% in the past year.