SAP SAP +0.31% reported strong first-quarter results on Friday, but shares in the German software giant are falling after sales in its key cloud division fell short of expectations and the group adjusted its outlook downwards.

SAP reported earnings of €1.27 ($1.39) per share on revenue of €7.44bn for the first three months of 2023. Analysts polled by FactSet had expected earnings of €1.10 on revenue of €7.30bn.