SAP Expected to Report Slowdown in Cloud Business Growth
Dow Jones
Yesterday
0915 GMT - SAP should report a moderation in cloud business growth when the German business-software group posts third-quarter results on Oct. 21, UBS analysts write in a research note. SAP's current cloud backlog--a closely watched measure of sales the group expects over the coming year based on existing contracts--grew 26% on year at constant currencies in the second quarter. Analysts say a slowdown to 24% or 25% in growth is highly likely in the third quarter. They say checks indicate that provisioning times for new SAP software functionalities at some large tech clients were lengthening as they invested more in AI infrastructure. SAP shares trade 0.7% higher at 188.88 euros.
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