Investing.com -- SAP SE ADR (NYSE: SAP) reported first-quarter results that exceeded analyst expectations for profitability, driving shares up 7.2% in after-hours trading Thursday as the German enterprise software provider demonstrated strong cloud momentum.

The company posted adjusted earnings per share of €1.72 for the quarter ended March 31, while total revenue reached €9.56 billion, up 6% YoY and 12% at constant currencies. Cloud revenue climbed 19%, or 27% at constant currencies, to €5.96 billion. Adjusted operating profit of €2.87 billion surpassed the analyst consensus of €2.73 billion, with the operating margin expanding to 30.0% from 27.2% a year earlier.

SAP's current cloud backlog grew 20%, or 25% at constant currencies, to €21.9 billion, signaling continued demand for its cloud offerings. Cloud ERP Suite revenue increased 23%, or 30% at constant currencies, to €5.21 billion. The strong profitability was supported by a €135 million decline in share-based compensation expenses.

"We had a strong start to the year, with Current Cloud Backlog growing by 25% and Cloud Revenue up 27% at constant currencies," said CEO Christian Klein. "This performance is supported by our momentum in Business AI as we are already delivering real outcomes for customers today."

For fiscal 2026, SAP maintained its guidance for cloud revenue of €25.8 billion to €26.2 billion at constant currencies, representing growth of 23% to 25%. The midpoint of €26.0 billion aligns with the company's previous outlook. SAP also reiterated its forecast for adjusted operating profit of €11.9 billion to €12.3 billion at constant currencies, up 14% to 18%, with a midpoint of €12.1 billion.

The company completed the first tranche of its share repurchase program, buying back 16.3 million shares for approximately €2.6 billion under its €10 billion program running through December 2027.