SAP říká, že výprodej SaaS byl přehnaný a že se „kyvadlo vrátí zpět“. Akcie firmy za poslední rok klesly asi o 20 %, od zveřejnění výsledků na konci července ale vzrostly zhruba o 40 %.
SAP has a message for software doomsayers: The pendulum will swing back By You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Jan Gilg, SAP's global president of customer success and Americas. SAP A SAP executive says the "pendulum will swing back" from the SaaSpocalypse.
Like many software companies, the German software giant has seen its stock hit hard over the past year amid competition from AI tools. This stock sell-off of software-as-a-service (SaaS) companies, known as the SaaSpocalypse, has hit companies like Salesforce, SAP, and Workday as Anthropic and OpenAI have introduced tools that could threaten their businesses.
SAP's stock has been down about 20% over the past year, though it's been on an upward trend over the past month.
When SAP reported its earnings in late July, investors responded positively to the company's cloud-led growth and advances in its business AI. Jan Gilg, SAP's global president of customer success and Americas, told Business Insider that the sell-off was "a bit of an overreaction on the entire industry."
"As usual, I feel the pendulum will swing back," Gilg said. "There will be users. There will be losers and winners. I truly believe SAP will be on the side of the winners."
To get on the winning side, Gilg says SAP has been reinventing itself with AI, investing in its data capabilities, and changing its pricing models.
"Everybody has AI on the agenda right now," Gilg said.
SAP bounces back from the SaaSpocalypseSAP's stock has jumped roughly 40% since it reported earnings in late July.
There's a reason for that, Gilg says. SAP isn't easily replaceable through a vibe-coded tool, though Gilg does expect companies to leverage AI to build software much faster. Internally, SAP has also used AI to improve its output and build its own software, and it sees AI as an opportunity to improve its tools for customers.
"It's really multifaceted. On the one side, there was the idea that customers will vibe code their software themselves rather than buying packaged software. We don't see that frankly," Gilg said. "We don't see that, especially for mission-critical purposes. It's not just about features and functions. It's about auditability, governance, and the maintenance of the software."
While Gilg says he hasn't seen customers replacing SAP software, he has seen competition over tech budgets—especially with token spending, or how companies pay for AI. SAP has a "good position" for this because customers rely on SAP data to run their business processes and can demonstrate its value, Gilg said.
"Customers are seeing token costs go through the roof already," Gilg said. "How do you measure and control that, and how do you show an outcome for that? Budgets won't necessarily increase. It will still have to come from somewhere. Therefore, the scrutiny will become much, much bigger."
SAP is competing more with PalantirLately, Gilg has been focusing on explaining to customers how they can benefit from AI and what SAP can offer. Customers have spent a lot of money on AI, though many haven't seen the business outcomes, profit, or productivity gains they're looking for.
"Customers have not yet seen the benefit of AI," Gilg said. "That is certainly something they are digging deeper into now."
To address that, SAP built its first foundational model, Tabular AI, which can help make predictions based on business data. In the future, Gilg expects people to interact with SAP products through natural language and voice.
SAP has also been investing in its ontology capabilities to allow customers to audit their systems and work with AI agents to help make decisions. Ontology is a favorite Palantir buzzword, and these capabilities put SAP in more direct competition with the AI data company.
While SAP competes with Palantir, they also partner to move data between systems. SAP says its advantage over rivals is its data from over 10,000 customers, which allows it to build more useful capabilities.
"We do see new players out there from Anthropic, OpenAI, Palantir, and so on," Gilg said. "That's going to be the battlefield of the future."
Internally, SAP uses AI across departments such as finance, human resources, and more. For example, employees can use an internal chatbot to ask questions or AI tools to write code. Sales employees can use AI to help with customer briefings or to study markets.
"We are definitely pivoting the company all in on AI," Gilg said. "We're doing this in a position of strength. Frankly, it's an evolution for us as well."
SAP is overhauling how it charges for AIGilg says AI will help SAP grow as it changes its business model. For example, it's moving from some subscription models to consumption-based models, meaning customers pay for what they use. The market has been shifting toward this pricing model, especially as high AI usage can drive up costs.
"What outcome are they driving?" Gilg said. "That's how we charge the consumption of those agents, which is very transparent to customers. Also, it's much easier to justify why they would actually pay for it. That's the current model many are following."
SAP still has a large subscription business, and many large customers use a hybrid model between subscription and consumption-based pricing.
More SaaS acquisitions could be comingThis year, SAP acquired Prior Labs, Reltio, and Dremio to boost its AI and data capabilities. Across the industry, Gilg expects to see a wave of acquisitions, especially with more AI-native startups and talent coming out of these companies.
"There's going to be a camp of losers and winners," Gilg said. "We have seen valuations go down quite significantly. That's an opportunity and interest for companies like that to look at wide spaces."
Gilg says SAP will also consider this if it makes sense for its business, though it would avoid companies that can be easily replaced by AI. If it's costly and time-consuming to switch from that software, customers are less likely to replace it with an AI-built application, Gilg said.
"I do see that there will certainly be a level of consolidation from my perspective, especially with vendors focused on single products," Gilg said. "Maybe niche areas, like legal contract management. Those are spaces that probably will be disrupted quite significantly."
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Rosalie Chan You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Rosalie Chan is a senior editor for Business Insider's tech team. Previously, she covered cloud computing and enterprise tech, reporting on companies like Google Cloud, Amazon Web Services, Microsoft, Intel, Alibaba Cloud, Atlassian, GitHub, VMware, Broadcom, and more. She has written extensively on topics including cloud computing, developer companies, open source, and sexism and sexual harassment in the tech industry. She has received the San Francisco Press Club award for continuing coverage for her reporting on sexism and sexual harassment in Silicon Slopes and the Excellence in Business / Consumer / Tech Reporting award from the Asian American Journalists Association for her investigation into the coding boot camp Holberton School. Most recently, she was an editor on the Business Insider investigative package, The True Cost of Data Centers, which received a George Polk Award and an honorable mention from SABEW.Rosalie joined Business Insider after working as a software engineer and freelance journalist. She studied journalism, computer science, and technology and business law at Northwestern University. Her work has previously appeared in TIME, the Huffington Post, VICE, Pacific Standard, Inverse, Chicago magazine, the Chicago Reporter, and more. She's based in San Francisco.
SummarySAP is downgraded from strong buy to hold after a 36% rally in two months.Cloud revenue surged 24% and backlog 27%, with AI and cloud initiatives driving major deals.SAP's cloud gross margin remains robust at 74.6%, supporting overall profitability and solid free cash flow.Valuation has risen to 25.5x forward P/E, limiting upside; I await a pullback or earnings acceleration before adding. Victor Golmer/iStock Editorial via Getty Images
I bought my first stake of shares in SAP SE (SAP) roughly 2 months ago. That's when I published an article about SAP. I rated it a strong buy and that's
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SAP ve středu klesl asi o 4 % poté, co UBS snížila rating z koupit na neutrální, i když zvýšila cílovou cenu. Banka vidí jen 17 AI agentů připravených k širšímu použití.
SAP SE SAP , the enterprise-application software giant, fell roughly 4% to $210.16 Wednesday after UBS delivered a brutal reality check on its AI rollout. The bank downgraded the stock from buy to neutral even while raising its price target from €164 to €201. Investors heard the downgrade louder than the target hike.
MarketWatch reported that UBS identified only 17 AI agents ready for broad use, with fewer than 20 more working through development or deployment. The bank also expects constant-currency cloud-backlog growth to fade from 26% in June to roughly 24% by year-end. SAP's second-quarter statement still packed plenty of muscle: €22.9 billion in current cloud backlog, 24% constant-currency cloud-revenue growth and €3 billion in free cash flow.
The valuation picture adds fuel to the debate. At $210.16, SAP trades 19.72% below its $261.80 GF Value estimate, leaving a sizable gap if execution improves. But cheap-looking software can stay cheap when the growth clock starts ticking. SAP already has the customers, contracts and cash. Now it must turn AI promises into deployed products—and do it before cloud momentum slips another gear.
SAP uvedl, že Business Data Cloud a AI byly součástí více než 90 % z 50 největších obchodů ve 2. čtvrtletí. Cloudové tržby vzrostly o 24 % na 6,3 miliardy eur.
Key Takeaways SAP's Business Data Cloud and AI featured in more than 90% of its 50 largest Q2 deals.Cloud revenue rose 24% to euro 6.3 billion, while current cloud backlog increased 26%.SAP is integrating Dremio, Reltio and Prior Labs to strengthen data, governance and AI capabilities SAP SE’s (SAP - Free Report) Business Data Cloud is emerging as an important pillar of the company’s AI strategy as enterprises look to bring together business data and provide AI agents with the context required to automate processes. The solution featured prominently in the second quarter, with AI and SAP Business Data Cloud serving as key pillars in more than 90% of SAP’s 50 largest deals. This strong adoption gives management confidence about business momentum in the second half of the year. SAP’s current cloud backlog increased 26%, while cloud revenues grew 24% to €6.3 billion in the quarter.
SAP Business Data Cloud forms the data foundation of the context and reason pillar of SAP’s new Business AI platform. It provides agents with broad access to enterprise data. SAP is strengthening this foundation through Dremio, whose Apache Iceberg-native technology allows mission-critical SAP and non-SAP data to be analyzed together in real time without first moving or copying the information.
SAP is also building a single semantic data layer that combines data products around customer, supplier, material and other master-data objects. Reltio will govern these models end to end to support high data quality, while the semantic models connect with SAP’s ontology layer and knowledge graph across lines of business and industries. Prior Labs adds tabular AI capabilities designed to help agents generate accurate predictions. The strategy could also create monetization opportunities as SAP expands agentic AI. SAP intends to keep Prior Labs’ technology open source but monetize its capabilities through value-priced agents rather than selling the model separately.
Management believes these agents can use SAP and non-SAP data to deliver predictions without requiring customers to curate data or manage data pipelines.
Meanwhile, SAP’s broader cloud transformation should support adoption. Its new RISE with SAP and GROW with SAP offering was well received in the second quarter, with strong uptake of the AI ERP migration toolchain. Customers are achieving faster time to value and up to 30% lower ERP migration costs. Stronger data integration, governance, AI capabilities and cloud migration momentum position Business Data Cloud as a key component of SAP’s push toward the autonomous enterprise.
Taking a Look at SAP’s CompetitorsSalesforce, Inc. (CRM - Free Report) is extending its CRM franchise by embedding Agentforce across Customer 360 and deepening the data layer through Informatica, which is supporting subscription growth and backlog. Usage indicators, including rising tokens processed and agentic work delivered, suggest customers are moving beyond early pilots. The company expects revenue growth to pick up in the second half of fiscal 2027 as Sales, Service, Slack, Agentforce and Data 360 adoption broadens. Salesforce is returning amounts of capital through an accelerated share repurchase while still generating cash flow to fund product investment.
Oracle Corporation’s (ORCL - Free Report) cloud infrastructure business demonstrates accelerating revenue growth, supported by strategic partnerships and competitive pricing that attract enterprise workload migrations. AI-optimized database capabilities provide technological differentiation, while record fiscal 2026 operating cash flow of $32 billion enables sustained infrastructure investments. The integrated solutions strategy strengthens customer retention and drives cross-selling opportunities. For first-quarter fiscal 2027, total revenues are expected to grow from 27% to 29% in both constant currency and USD. Total Cloud revenues are expected to grow 57-63% in constant currency and 58-64% in USD. For fiscal 2027, the company confirmed prior revenue guidance of $90 billion.
SAP’s Price Performance, Valuation & EstimatesShares of SAP have gained 11.7% in the past six months, underperforming the Zacks Computer and Technology sector’s appreciation of 18.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, SAP stock is currently trading at a trailing 12-month Price/Earnings ratio of 28.53X, which is higher than the Zacks Computer - Software industry average of 26.83X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for SAP’s 2026 earnings is pegged at $8.13, which suggests 16.81% growth over the figure reported in 2025.
SAP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SAP plánuje do konce třetího čtvrtletí téměř 50 AI asistentů a do konce roku přes 400 agentů Autonomous Suite. AI nástroje pro migraci ERP mohou snížit náklady až o 30 %.
Key Takeaways SAP plans nearly 50 AI assistants by Q3-end and over 400 Autonomous Suite agents for workflows by year-end.SAP expects usage- and value-based models to drive cloud growth by 2030 as seat revenue steadies.AI migration tools can cut costs by up to 30%, but acquisitions dilute 2026 profit by over 100M euros. SAP SE (SAP - Free Report) is leaning into agentic AI as enterprise software shifts from record-keeping systems toward autonomous workflows. Its strategy ties AI assistants, trusted business data and cloud ERP migration tools into one operating model.
The opportunity is long dated. By 2030, management expects cloud growth to rely more on consumption, usage and value-based pricing than traditional seat expansion.
SAP Scales Agentic AI Across Enterprise WorkflowsSAP plans to release nearly 50 AI assistants by the end of the third quarter. It also expects to support more than 400 Autonomous Suite agents by year-end, giving customers a broader automation layer inside core business processes.
The company is embedding AI across finance, procurement, supply chain, human resources and customer operations. The goal is not a standalone chatbot layer, but AI that works within applications that already hold business context, transaction history and governance controls.
SAP Shifts Toward Usage-Based Cloud RevenueManagement expects SAP’s cloud revenue mix to shift meaningfully by 2030. Consumption-based and non-seat-based models are expected to drive most incremental cloud growth as AI and data adoption increase.
That would mark a different growth model from conventional software seats. Seat-based revenue is expected to stabilize, while value- and usage-driven pricing becomes a larger contributor as customers use more AI, data and automation inside SAP’s cloud suite.
SAP Data Deals Strengthen the AI PlatformSAP’s recent data moves support that strategy. Dremio adds data lakehouse capabilities that enable real-time analytics across SAP and non-SAP data without requiring data movement or conversion.
Reltio and Prior Labs address different layers of the same problem. Reltio strengthens master-data governance and semantic data models, while Prior Labs adds tabular AI capabilities for structured business data. Together, these assets help SAP ground AI agents in cleaner, more connected enterprise data.
SAP ERP Tools Could Lower Migration FrictionERP migration remains one of the biggest barriers to cloud adoption. SAP says its AI-powered ERP migration toolchain is helping customers accelerate deployments, shorten time to value and reduce migration costs by up to 30%.
The company also plans to introduce three additional ERP migration assistants with 10 underlying agents later this quarter. If these tools work as intended, they could make RISE with SAP and GROW with SAP easier to adopt for customers moving legacy workloads into the cloud.
SAP Trends Carry Margin and Macro RisksAI scale is not free. SAP has to keep investing in product development, acquisitions and platform capacity while competing with large providers such as Oracle Corporation (ORCL - Free Report) , whose Fusion Cloud Applications also embed AI agents across enterprise workflows.
Near-term dilution is another concern. SAP lowered its 2026 non-IFRS operating profit outlook to €11.8-€12.2 billion, reflecting more than €100 million of expected impact from Dremio and Prior Labs. Operating expenses for 2027 are projected to rise at 80-90% of revenue growth.
Enterprise AI adoption also carries timing risk. Long sales cycles, complex license transactions, cybersecurity exposure, geopolitical tension and customer budget shifts could weigh on demand. Salesforce, Inc. (CRM - Free Report) , through Agentforce, adds another major competitive reference point in enterprise agentic software.
SAP Signals Show Momentum Still Needs RepairSAP’s agentic AI and cloud ERP strategy gives it a credible path to broader enterprise automation, but the stock’s near-term setup is less supportive. Product momentum must still translate into firmer earnings revisions and better market timing.
SAP currently carries a Zacks Rank #4 (Sell). Its Growth Score of C recognizes underlying expansion potential, but its Value Score of D, Momentum Score of F and VGM Score of D point to weaker valuation, timing and blended style characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The rank and Style Scores suggest investors should separate the long-term AI platform story from the stock’s current earnings-momentum profile. SAP’s trends through 2030 remain worth tracking, but execution risk and timing still matter.
Key Takeaways SAP shares fell 29.6% year to date as lower 2026 profit guidance complicated the valuation reset.SAP's 22.9B euros cloud backlog rose 27%, supported by RISE and GROW cloud ERP migrations.Integration costs, estimate cuts and modest price-target upside argue for investor patience. SAP SE (SAP - Free Report) faces a harder investor debate after a steep share-price reset and a reduced profit outlook for 2026. The selloff has lowered the valuation, but weaker earnings momentum keeps the buy case from being straightforward.
The longer-term story still rests on cloud ERP migration, AI adoption and cash generation. The near-term question is whether those strengths can outweigh guidance pressure, integration costs and negative estimate revisions.
SAP Valuation Reflects a Sharp ResetSAP shares have fallen 29.6% year to date and 40.5% over the trailing 12 months. That decline has pulled expectations down sharply and shifted the debate from growth scarcity to whether the reset is deep enough.
The stock trades at 18.68 times forward earnings. That multiple needs to be judged against the software sub-industry, the broader technology sector and the S&P 500 benchmarks, since SAP still carries a premium tied to its cloud transition and enterprise software position.
SAP Backlog Supports Future RevenueSAP’s current cloud backlog stood at €22.9 billion, up 27% year over year. That backlog gives investors a clearer view into contracted future cloud revenues than traditional license-heavy software models typically provide.
Cloud ERP Suite adoption remains important to that visibility. RISE with SAP and GROW with SAP continue to support customer migration to cloud ERP, helping SAP convert legacy enterprise relationships into recurring cloud demand.
Oracle Corporation (ORCL - Free Report) remains a relevant comparison because its Fusion applications also target cloud ERP, finance, supply chain and human capital management customers. Oracle’s embedded AI push underscores how competitive the market for enterprise workflow automation has become.
SAP Profit Guidance Limits the UpsideThe main offset is the lowered 2026 non-IFRS operating profit guidance from €11.9–€12.3 billion to €11.8–€12.2 billion. That reduction narrows the room for positive earnings surprises at a time when investors are already questioning the speed of cloud-led margin expansion.
Image Source: Zacks Investment Research
Dremio and Prior Labs are expected to lower annual profit by more than €100 million because of integration costs and ongoing investment. The deals may deepen SAP’s data and AI capabilities, but the near-term effect is dilution rather than margin relief.
SAP Presents a Mixed Risk-Reward CaseSAP’s $184 price target compares with a reported share price of $171.01. The implied upside is modest, which limits the argument for chasing the stock even after the sharp pullback.
Free cash flow and buybacks still provide support. SAP reaffirmed its ability to fund innovation and shareholder returns, but declining legacy revenue and revenue acceleration that is now expected in 2027 leave the stock dependent on execution.
Microsoft Corporation (MSFT - Free Report) is another key enterprise software reference point because Dynamics 365, Power Platform and Copilot offerings compete for business application and workflow automation budgets. Its presence raises the bar for SAP’s AI monetization and customer retention.
SAP Scores Argue for Investor PatienceThe bottom line is that SAP’s lower valuation is not enough by itself to make the stock a clear buy. The cloud backlog, AI opportunity and cash flow profile support the long-term case, but the profit cut and modest price-target upside argue for selectivity.
SAP currently carries a Zacks Rank #4 (Sell). Recent downward revisions to earnings estimates reinforce a weak one-to-three-month outlook, which matters because the Zacks Rank is built around the earnings revision trend. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Style Scores add to that caution. SAP has a Value Score of D, Growth Score of C, Momentum Score of F and VGM Score of D. Those grades suggest the stock still lacks a favorable blend of valuation, growth quality and price momentum despite the substantial reset.
SAP uvedl, že Business Data Cloud dosáhl v prvním roce asi 2 mld. EUR hodnoty kontraktů a AI byla ve více než 90 % jeho 50 největších obchodů ve 2. čtvrtletí. Firma zároveň potvrdila volný peněžní tok kolem 10 mld. EUR v roce 2026.
Key Takeaways SAP's cloud ERP and AI strategy targets autonomous workflows across core business functions.SAP Business Data Cloud reached about 2B euros in contract value, with AI in over 90% of top deals.SAP expects about 10B euros in 2026 free cash flow, while legacy declines and integration costs weigh. SAP SE (SAP - Free Report) is tying cloud ERP migration to embedded AI, enterprise data and workflow automation. The strategy is meant to move customers from legacy systems into a cleaner cloud model that can support more autonomous business processes.
The investor debate is straightforward. Cloud and AI demand are improving SAP’s growth profile, but software license and services revenues are still declining as the business model shifts.
SAP Builds Around the Autonomous EnterpriseSAP’s AI strategy centers on the Autonomous Suite and Business AI Platform. The company is embedding AI across finance, procurement, supply chain, human resources and customer operations, using enterprise applications as the operating layer.
Joule Studio forms the build layer for creating and extending AI agents. SAP Business Data Cloud supplies business context, while the run-and-govern layer helps customers deploy, manage and govern agents at scale.
SAP Business Data Cloud Gains Early TractionSAP Business Data Cloud generated approximately €2 billion in total contract value within its first year. That early adoption supports the case that customers want AI tied to governed enterprise data, not disconnected models.
More than 90% of SAP’s 50 largest second-quarter deals included AI and SAP Business Data Cloud. That mix gives management confidence in second-half demand as Business AI reaches more customers.
SAP Cash Flow Funds Innovation and BuybacksSAP reaffirmed its expectation for approximately €10 billion in 2026 free cash flow. That cash generation gives the company room to invest in product innovation, acquisitions and business development while navigating the cloud transition.
Image Source: Zacks Investment Research
Capital returns remain part of the story. SAP announced a €10 billion share repurchase program running through the end of 2027, and as of June 30, had repurchased more than 16.28 million shares for approximately €2.6 billion.
SAP Faces Migration and Execution RisksThe shift away from legacy software still has costs. Second-quarter software license revenues declined 32% year over year to €0.13 billion; services revenues fell 3% to €1 billion and cloud backlog growth is expected to moderate as the business scales.
Acquisition-related dilution also tempers the outlook. SAP expects Dremio and Prior Labs to reduce 2026 operating profit by more than €100 million, while competition remains intense from providers such as Oracle Corporation (ORCL - Free Report) , which also embeds AI agents into cloud applications.
Regulated enterprise deals can take longer to negotiate, deploy and ramp. Salesforce, Inc. (CRM - Free Report) , through Agentforce, adds another competitive reference point in enterprise AI, particularly where customers evaluate agent platforms tied to workflow automation.
Geopolitical uncertainty, cybersecurity exposure, pricing pressure and changing customer budgets remain risks. SAP also noted that its outlook assumes a near-term de-escalation of tensions in the Middle East.
SAP Signals Point to a Cautious Near-Term ViewSAP’s long-term growth case rests on a clear shift toward cloud ERP, trusted data and AI-enabled workflows. The near-term stock setup is less supportive because estimated momentum and share-price timing remain weak.
SAP currently carries a Zacks Rank #4 (Sell), which points to an unfavorable one-to-three-month earnings outlook. Its Value Score of D, Growth Score of C, Momentum Score of F and VGM Score of D reinforce a selective stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The scores do not erase SAP’s cloud and AI progress. They do suggest investors should separate long-term platform potential from weaker current valuation, momentum and estimate-revision signals.
SAP v pondělí posiluje o 6,92 % po slabším čtvrtletním výsledku, protože investoři sázejí na růst cloudu a backlogu. Cloud backlog stoupl na 22,9 miliardy EUR, o 27 % (26 % při konstantních měnách), a tržby z cloudu o 22 % (24 % při konstantních měnách).
SAP SE (NYSE:SAP) shares are trading higher Monday afternoon as investors looked past last week’s second-quarter earnings miss.
Meanwhile, Barclays kept its Overweight rating while trimming its price target from $255 to $242. Here’s what investors need to know.
SAP shares are powering higher. What’s behind SAP gains? What Is Driving SAP’s Cloud Momentum?SAP’s second-quarter print missed estimates, with EPS of $1.85 versus a $2.01 consensus and revenue of $11.48 billion versus $11.49 billion, but investors are leaning into cloud momentum and backlog growth.
The company reported a current cloud backlog of €22.9 billion ($26,053,559,000), up 27% (26% at constant currencies), alongside cloud revenue growth of 22% (24% at constant currencies).
SAP also pointed to Cloud ERP Suite revenue growth of 25% (27% at constant currencies) and updated its 2026 non-IFRS operating profit outlook to reflect dilution from the Dremio and Prior Labs acquisitions. CEO Christian Klein framed the quarter around an "Autonomous Enterprise" strategy, citing momentum in the Autonomous Suite and Business AI Platform.
SAP’s cloud narrative is getting extra oxygen from management’s AI product cadence, including plans to release nearly 50 AI assistants and more than 400 Autonomous Suite agents by year-end. That roadmap helps explain why traders are willing to look past a one-quarter EPS miss and lean into backlog-driven visibility.
Critical Price Levels To Watch For SAPMonday’s surge pushes SAP to $172.33, putting it about 8.6% above its 20-day SMA ($157.93) and about 3.5% above its 50-day SMA ($165.71), while it’s only about 0.3% above the 100-day SMA ($171.03). The bigger-picture issue is still overhead: the stock remains about 16.2% below the 200-day SMA ($204.80), so longer-term trend followers may still treat rallies as "repair work" until price can reclaim that zone.
Momentum is improving: MACD is above its signal line and the histogram is positive, which typically means downside pressure is easing versus the prior downswing. In plain English, MACD being above the signal line suggests buyers are gaining traction even if the longer-term trend hasn’t fully flipped.
Key Resistance: $196.50 — Nearby ceiling that also sits below the 200-day averages, where rebounds can stall before the long-term trend turns Key Support: $152.50 — Recent floor area not far above the $144.97 52-week low zone, where buyers previously showed up SAP Stock Price Movement on MondaySAP Stock Price Activity: SAP shares were up 6.92% at $171.07 at the time of publication on Monday, according to Benzinga Pro data.
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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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DAX na začátku týdne přidal 1,04 % a táhly ho hlavně SAP (+7,9 %) po spuštění další části odkupu akcií až za 2,6 mld. EUR. Hochtief po výsledcích za druhé čtvrtletí oslabil o 3,0 %.
Německé akcie, měřené indexem DAX, na začátku týdne vzrostly o více než 1 %. Nejvíce posílily akcie SAP (+7,9 %), Scout24 (+4,8 %) a Zalando (+4,1 %). Společnost SAP zahájila další část programu zpětného odkupu akcií v objemu až 2,6 mld. EUR. Odkup potrvá do 27. ledna 2027 a je součástí programu v celkové hodnotě až 10 mld. EUR, který má skončit na konci roku 2027. Naopak nejvíce oslabily akcie Infineon Technologies (-4,5 %), Hochtief (-3,0 %) a RWE (-2,6 %). Společnost Hochtief zveřejnila výsledky za druhý kvartál. Tržby společnosti meziročně vzrostly o 14 % na 10,74 mld. EUR a překonaly očekávání 10,6 mld. EUR. Provozní zisk před zdaněním dosáhl 400,5 mil. EUR při očekávání 385 mil. EUR a provozní čistý zisk činil 257,6 mil. EUR při analytickém odhadu 245,3 mil. EUR.
Celoevropský index STOXX Europe 600 aktuálně posiluje o 0,07 %. Z jednotlivých sektorů rostou komunikační služby (+2,28 %), cyklické spotřební zboží (+1,57 %) a zdravotní péče (+1,36 %). Naopak největší ztráty zaznamenávají informační technologie (-4,33 %), energie (-1,98 %) a utility (-1,05 %).
Index DAX +1,04 % na 25361,03 b. Nejsilnější akcie Změna Nejslabší akcie Změna SAP (SAP) +7,9 % Infineon Technologies (IFX) -4,5 % Scout24 SE (G24) +4,8 % HOCHTIEF AG (HOT) -3,0 % Zalando (ZAL) +4,1 % RWE (RWE) -2,6 % Adidas (ADS) +3,5 % E.ON (EOAN) -2,5 % Deutsche Telekom (DTE) +2,6 % Siemens Energy (ENR) -2,0 % Zdroj: Bloomberg
SAP po výsledcích hospodaření za 2Q 2026 přidává 6,5 %, když tržby z cloudových služeb překonaly očekávání. Firma ale snížila celoroční výhled provozního zisku kvůli dopadu akvizic.
Německé akcie měřené indexem DAX se v úvodu páteční seance obchodují v zelených číslech.
Akcie Volkswagenu klesají o 1,4 %. Automobilka nově očekává pokles celoročních tržeb až o 3 %, případně jejich stagnaci, zatímco dříve počítala se stagnací až růstem o 3 %. Výsledky za druhé čtvrtletí zaostaly na úrovni provozního zisku i marže, když provozní zisk dosáhl 3,47 mld. EUR oproti očekávaným 4,07 mld. EUR. Hlavním důvodem zhoršeného výhledu je slabší vývoj v Číně, přičemž Volkswagen zároveň upozornil na rostoucí konkurenční tlak čínských výrobců. Analytici Bernstein hodnotí pozitivně potvrzení celoročního výhledu provozní marže v rozmezí 4 až 5,5 %, zatímco Morgan Stanley poukazuje na lepší než očekávaný volný peněžní tok automobilové divize. Finanční ředitel Arno Antlitz uvedl, že Volkswagen musí výrazně zjednodušit nabídku vozů, omezit počet používaných technických platforem, zefektivnit investiční portfolio a zjednodušit řízení i rozhodování ve skupině.
Softwarová společnost SAP včera po uzavření trhu reportovala výsledky za 2Q 2026. Výnosy z cloudových služeb předčily očekávání a analytici celkově hodnotí report jako solidní. Očekávání nenaplnila společnost výší provozního zisku, na jehož úrovni snížilo SAP také roční výhled kvůli negativnímu vlivu uskutečněných akvizic. Akcie SAP přidávají 6,5 %.
Index DAX +0,5 % na 24886,92 b. Nejsilnější akcie Změna Nejslabší akcie Změna SAP (SAP) +6,5 % Adidas (ADS) -3,4 % Deutsche Boerse (DB1) +1,6 % Brenntag (BNR) -1,7 % Siemens Energy (ENR) +1,4 % Deutsche Telekom (DTE) -1,5 % Rheinmetall AG (RHM) +1,1 % Volkswagen (VOW3) -1,4 % Fresenius (FRE) +0,8 % Qiagen (QIA) -1,3 %
Zdroj: Bloomberg
CFO SAP Dominik Asam řekl, že návratnost AI přijde spíš z komplexních firemních procesů než z chatbotů a kódovacích nástrojů. Klíčové budou čistá data, spolehlivost a kontrola nákladů.
A logo on the SAP exhibition space at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France June 15, 2022.... Purchase Licensing Rights, opens new tab Read more
July 23 (Reuters) - SAP's (SAPG.DE), opens new tab finance chief said on Thursday that artificial intelligence in enterprise software must move beyond chatbots and coding tools into more complex business processes, where clean data, reliability and cost control matter more than access to the most powerful model.
Companies have poured money into generative AI but are still seeking evidence of broad productivity gains, and SAP is arguing that the returns will come less from general-purpose models than from governed systems embedded in specific business processes.
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CFO Dominik Asam told reporters after SAP's second-quarter results that the "lion's share" of AI token consumption today was spent in "low-hanging fruits" coding assistant and chatbots, where AI's hallucinations matter less because the output carries limited risk if it fails.
But applying AI to finance, supply chain or other core business processes is harder because errors carry over multiple steps, increasing risk against compliance standards, he said.
"If you have some hallucinations in the process, the errors will actually compound statistically over many steps," Asam said, referring to finance workflows. "It requires much more excruciating assurance levels."
The "high-hanging fruit" of AI, Asam said, is less about applying a generic plug-and-play large language model across a company than about building systems around specific businesses.
That requires companies to make their own data usable and governed, so AI can operate with the knowledge of the company. "The idea that AI will solve all these problems if they are messy, legacy data silos is not true," Asam said, adding that such an approach came with "extremely high token costs."
The most advanced model is not always the right one, he said. In practice, he said, companies will use the cheapest reliable tool that can deliver the required outcome safely, whether that is simple software, an open-source model or an expensive frontier model.
Reporting by Leo Marchandon in Gdansk; Editing by Alistair Bell
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Leo's stories appear regularly on the technology and media desk, with a particular focus on France, Ukraine, and Europe's tech build up. He has reported extensively on major players across media & entertainment, artificial intelligence, and digital regulations. A background in tech-related law, Leo started his journalism career in Bordeaux, where he covered the full spectrum of the technology beat, from AI and spacetech to payment systems and regulations. He is now based in Gdansk, covering business, tech and entertainment news across Europe with Reuters.
SAP SE (SAP) Q2 2026 Earnings Call July 23, 2026 5:00 PM EDT
Company Participants
Alexandra Kasper Steiger - Global Head of Investor Relations
Christian Klein - CEO & Member of Executive Board
Dominik Asam - CFO & Member of Executive Board
Conference Call Participants
Adam Wood - Morgan Stanley, Research Division
Mohammed Moawalla - Goldman Sachs Group, Inc., Research Division
Ben Castillo-Bernaus - BNP Paribas, Research Division
S. Kirk Materne - Evercore ISI Institutional Equities, Research Division
Michael Briest - UBS Investment Bank, Research Division
Charles Brennan - Jefferies LLC, Research Division
Frederic Boulan - BofA Securities, Research Division
Toby Ogg - JPMorgan Chase & Co, Research Division
Michael Turrin - Wells Fargo Securities, LLC, Research Division
Presentation
Operator
Ladies and gentlemen, thank you for standing by. Welcome, and thank you for joining the SAP Q2 and Half Year 2026 Financial Results Conference Call. [Operator Instructions]
I would now like to turn the conference over to Alexandra Steiger, Global Head of Investor Relations. Please go ahead.
Alexandra Kasper Steiger
Global Head of Investor Relations
Good evening, everyone, and welcome. Thank you for joining us. With me today are CEO, Christian Klein; and CFO, Dominik Asam. On this call, we will discuss SAP's second quarter 2026 results. You can find the deck supplementing this call as well as our quarterly statement on our Investor Relations website.
During this call, we will make forward-looking statements, which are predictions, projections or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to differ materially. Additional information regarding these risks and uncertainties may be found in our filings with the SEC, including, but not limited to, the Risk Factors section of our annual report on Form 20-F for 2025. Unless otherwise stated, all numbers on this call are non-IFRS and growth rates and
, /PRNewswire/ -- SAP SE (NYSE: SAP) announced today its financial results for the second quarter ended June 30, 2026.
Current cloud backlog of €22.9 billion, up 27% and up 26% at constant currencies Cloud revenue up 22% and up 24% at constant currencies Cloud ERP Suite revenue up 25% and up 27% at constant currencies Total revenue up 9% and up 11% at constant currencies IFRS operating profit up 8%, non-IFRS operating profit up 7% and up 9% at constant currencies 2026 non-IFRS operating profit outlook updated to reflect dilutive impact from Dremio and Prior Labs acquisitions Christian Klein, CEO:
We delivered another quarter of strong current cloud backlog growth, up 26% at constant currencies. This performance is underpinned by our Autonomous Enterprise strategy with strong momentum across our Autonomous Suite as well as our Business AI Platform. Customers are choosing SAP to enable accurate and compliant AI outcomes grounded in their most critical business processes and data.
Dominik Asam, CFO:
Q2 was another strong quarter, highlighted by sustained current cloud backlog and free cash flow growth against a volatile macroeconomic backdrop. These results reflect our disciplined execution and our ability to deliver against our operating objectives. As part of that execution, we aggressively drive our own transformation into an Autonomous Enterprise, leveraging AI to boost both effectiveness and efficiency at the same time.
Group Results at a Glance
Second quarter 2026
IFRS
Non-IFRS1
€ million, unless otherwise stated
Q2 2026
Q2 2025
∆ in %
Q2 2026
Q2 2025
∆ in %
∆ in % const. curr.
Current cloud backlog
22,929
18,052
27
26
SaaS/PaaS2
6,216
5,045
23
6,216
5,045
23
25
Thereof Cloud ERP Suite2
5,525
4,422
25
5,525
4,422
25
27
Thereof Extension Suite2
692
624
11
692
624
11
12
IaaS2
65
85
–23
65
85
–23
–22
Cloud revenue
6,281
5,130
22
6,281
5,130
22
24
Software licenses revenue
131
194
–32
131
194
–32
–32
Software support revenue
2,439
2,642
–8
2,439
2,642
–8
–7
Cloud and software revenue
8,851
7,966
11
8,851
7,966
11
13
Services Revenue
1,027
1,061
–3
1,027
1,061
–3
–2
Total revenue
9,878
9,027
9
9,878
9,027
9
11
Cloud gross profit
4,664
3,833
22
4,687
3,856
22
23
Cloud gross margin (in %)
74.3
74.7
–0.5pp
74.6
75.2
–0.6pp
–0.7pp
Gross profit
7,228
6,620
9
7,250
6,643
9
11
Gross margin (in %)
73.2
73.3
–0.2pp
73.4
73.6
–0.2pp
–0.2pp
Operating profit (loss)
2,643
2,456
8
2,743
2,568
7
9
Operating margin (in %)
26.8
27.2
–0.5pp
27.8
28.5
–0.7pp
–0.4pp
Profit (loss) after tax
2,209
1,749
26
1,828
1,747
5
Earnings per share - Basic (in €)
1.89
1.45
30
1.59
1.50
6
Net cash flows from operating activities
3,153
2,577
22
Free cash flow
3,002
2,357
27
1 For a breakdown of the individual adjustments see table Non-IFRS Operating Expense Adjustments by Functional Areas in this Quarterly Statement.
2 For a definition of Cloud ERP Suite and Extension Suite, see the Performance Management System chapter in the 2025 Integrated Report. For an Explanation of IaaS, SaaS, and PaaS, see the Notes to the Consolidated Financial Statements of the Integrated Report 2025, Note (A.1).
Six months ended June 2026
IFRS
Non-IFRS1
€ million, unless otherwise stated
Q1–Q2
2026
Q1-Q2
2025
∆ in %
Q1–Q2
2026
Q1-Q2
2025
∆ in %
∆ in % const. curr.
Current cloud backlog
22,929
18,052
27
26
SaaS/PaaS2
12,112
9,935
22
12,112
9,935
22
27
Thereof Cloud ERP Suite2
10,739
8,673
24
10,739
8,673
24
29
Thereof Extension Suite2
1,373
1,262
9
1,373
1,262
9
12
IaaS2
131
188
–30
131
188
–30
–28
Cloud revenue
12,244
10,124
21
12,244
10,124
21
26
Software licenses revenue
247
377
–34
247
377
–34
–33
Software support revenue
4,908
5,403
–9
4,908
5,403
–9
–6
Cloud and software revenue
17,399
15,904
9
17,399
15,904
9
13
Services Revenue
2,033
2,136
–5
2,033
2,136
–5
–2
Total revenue
19,432
18,040
8
19,432
18,040
8
11
Cloud gross profit
9,114
7,553
21
9,168
7,601
21
25
Cloud gross margin (in %)
74.4
74.6
–0.2pp
74.9
75.1
–0.2pp
–0.4pp
Gross profit
14,201
13,226
7
14,263
13,275
7
11
Gross margin (in %)
73.1
73.3
–0.2pp
73.4
73.6
–0.2pp
–0.3pp
Operating profit (loss)
5,383
4,789
12
5,609
5,024
12
16
Operating margin (in %)
27.7
26.5
1.2pp
28.9
27.8
1.0pp
1.2pp
Profit (loss) after tax
4,155
3,545
17
3,830
3,428
12
Earnings per share - Basic (in €)
3.55
2.98
19
3.31
2.94
12
Net cash flows from operating activities
6,666
6,357
5
Free cash flow
6,250
5,939
5
1 For a breakdown of the individual adjustments see table Non-IFRS Operating Expense Adjustments by Functional Areas in this Quarterly Statement.
2 For a definition of Cloud ERP Suite and Extension Suite, see the Performance Management System chapter in the 2025 Integrated Report. For an Explanation of IaaS, SaaS, and PaaS, see the Notes to the Consolidated Financial Statements of the Integrated Report 2025, Note (A.1).
Supplementary Information[1]
Financial Results
Current cloud backlog growth benefited from the first-time inclusion of Reltio, which contributed less than 1 percentage point to the constant currencies growth rate.
The sequential decline in both IFRS and non-IFRS operating profit growth is mainly caused by the sequential deceleration of cloud- and total revenue growth, an unusually low stock-based compensation expense in the first quarter, accelerated investments into research and development as well as the dilutive impact of the Reltio acquisition.
IFRS effective tax rate was 26.5% and non-IFRS effective tax rate was 30.8%. The IFRS effective tax rate is lower than the non-IFRS effective tax rate due to tax benefits from tax-exempt income.
Share Repurchase Program
In January 2026, SAP announced a new share repurchase program with an aggregate volume of up to €10 billion and a term until December 31, 2027. As of June 30, 2026, SAP had repurchased 16,280,097 shares at an average price of €161.16 resulting in a purchased volume of approximately €2.6 billion under the program.
Outlook
Financial Outlook
For 2026, SAP is updating its non-IFRS operating profit outlook to reflect the dilutive impact of the Dremio and Prior Labs acquisitions closed in July, which is projected to be in excess of €100 million. SAP now expects:
€11.8 – 12.2 billion non-IFRS operating profit at constant currencies (2025: €10.42 billion), up 13% to 17% at constant currencies. The previous outlook was €11.9 – 12.3 billion. SAP continues to expect:
€25.8 – 26.2 billion cloud revenue at constant currencies (2025: €21.02 billion), up 23% to 25% at constant currencies. €36.3 – 36.8 billion cloud and software revenue at constant currencies (2025: €32.54 billion), up 12% to 13% at constant currencies. Approximately €10 billion free cash flow at actual currencies (2025: €8.24 billion). An effective tax rate (non-IFRS) of approximately 29% (2025: 30.5%)[2]. Constant currencies current cloud backlog growth to slightly decelerate (2025: 25%). SAP further expects:
Constant currencies total revenue growth in 2026 to remain at similar levels as in 2025 (10.6%) and to accelerate in 2027. Total operating expenses to grow at 80% to 90% of total revenue growth in 2027. Constant currencies software support revenue decline rate to accelerate in the coming years as a consequence of an acceleration of customers transforming to the cloud. SAP's financial outlook for the full-year 2026 is based on the assumption of a near-term de-escalation of the conflict in the Middle East. Other impacts due to the evolving situation in the Middle East are currently unknown and could potentially subject our business to materially adverse consequences should the situation continue or even further escalate beyond its current scope.
While SAP's 2026 financial outlook for the income statement parameters is at constant currencies (including an average exchange rate of 1.13 USD per EUR), actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the company progresses through the year, as reflected in the table below.
Currency Impact Assuming June 30, 2026 Rates Apply for 2026
In percentage points
Q3 2026
FY 2026
Cloud revenue growth
1.5pp
-1.5pp
Cloud and software revenue growth
1.0pp
-1.5pp
Operating profit growth (non-IFRS)
0.0pp
-2.0pp
This includes an exchange rate of 1.14 USD per EUR.
Non-Financial Outlook
For 2026, SAP continues to expect:
Cloud Customer Satisfaction (Cloud CSAT) to be in a range of 75% to 76% (2025: 75%). The Employee Engagement Index to be in a range of 74% to 78% (2025: 76%). The Business Health Culture Index (BHCI) to be in a range of 80% to 82% (2025: 81%). To steadily decrease carbon emissions across the relevant value chain (2025: 3.6 Mt). Business Highlights
In the second quarter, customers around the globe continued to choose the "RISE with SAP" journey. These customers included: ACCIONA, AIRBUS, City of Osnabrueck, Electrolux, Eli Lilly, Gilead Sciences, HARTING, Hindustan Zinc, The Humboldt University of Berlin, JET, Ørsted, Samsonite Group, Shell, The Shoprite Group, SIGNAL IDUNA, SPAR (CH), Sun Pharma, Vonovia.
Gooroo Crédito, Modular Data Centers, Parloa, Tarrant County, Techem chose "SAP GROW".
AMADEUS, BBC, Booking.com, GOL, Oki Electric Industry, PwC, University Hospital Zurich, Vale chose SAP's AI and data solutions.
Döhler, FANUC Europe, Fonterra, Natura Cosméticos, SABESP, TEAG went live on SAP solutions in the second quarter.
In the second quarter, SAP's cloud revenue performance was particularly strong in APJ and EMEA and solid in the Americas region. Brazil, France, Germany, Italy, India, South Korea and Spain had outstanding performance, while Australia, Singapore and the U.S. were particularly strong.
On April 10, SAP announced that it has extended the contract of Gina Vargiu-Breuer, Chief People Officer of SAP SE, for another three years until January 31, 2030.
On April 22, SAP and Google Cloud announced a new partnership that will help marketers put AI agents to work at scale.
On May 4, SAP and Dremio announced that SAP has agreed to acquire Dremio, an open, high-performance data lakehouse platform built to accelerate agentic AI and expand SAP Business Data Cloud's ability to combine SAP and non-SAP data to more effectively run analytical and AI workloads in real time. The acquisition was completed on July 6.
In addition, SAP and Prior Labs, the pioneer of Tabular Foundation Models (TFMs), announced that they have entered into a definitive agreement for SAP to purchase Prior Labs, accelerating SAP's success in TFMs that started with SAP-RPT-1, and bringing one of the world's leading TFM research teams into the SAP family. The acquisition was completed on July 16.
On May 5, SAP held its Annual General Meetings of Shareholders, with all agenda items achieving strong shareholder support.
On May 7, SAP announced that it has completed the acquisition of Reltio, a leading master data management (MDM) software provider.
On May 12, SAP introduced the Autonomous Enterprise to help enhance the world's most critical business workflows, so that humans and AI work together to meet the accelerating demands of global business profitably, strategically and safely. In addition, SAP also announced strategic partnerships with Anthropic, Amazon Web Services, n8n, NVIDIA, Parloa, Palantir and Accenture.
On May 28, SAP rated A1 (stable) by Moody's and A+ (stable) by S&P Global, successfully completed a Eurobond transaction with a total volume of €3.5 billion across four tranches with tenors of two, three, five and seven years. The net proceeds from this transaction are used for general corporate purposes, including (re)financing of recently announced acquisitions.
On July 9, SAP announced that it welcomes the European Commission's decision to conclude its competition investigation into certain aspects of SAP's on-premise maintenance and support practices through a commitment decision, following a constructive and cooperative dialogue.
Additional Information
This quarterly statement and all information therein are preliminary and unaudited. Due to rounding, numbers may not add up precisely. The Q2 2026 Quarterly Statement can be downloaded from: https://www.sap.com/investors/sap-2026-q2-statement.
SAP Performance Measures
For more information about our key growth metrics and performance measures, their calculation, their usefulness, and their limitations, please refer to the following document on our Investor Relations website: https://www.sap.com/investors/en/financial-documents-and-events/reporting-framework.html.
Webcast
SAP senior management will host a financial analyst conference call on Thursday, July 23rd at 11:00 PM (CEST) / 10:00 PM (BST) / 5:00 PM (EDT) / 2:00 PM (PDT). The conference will be webcast on the Company's website at https://www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the first quarter results can be found at https://www.sap.com/investor
About SAP
As a global leader in enterprise applications and business AI, SAP (NYSE: SAP) stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit www.sap.com.
For more information, financial community only:
Alexandra Steiger +49 (6227) 7-767336 [email protected], CET
Follow SAP Investor Relations on LinkedIn at SAP Investor Relations.
For more information, press only:
Marcus Winkler +46 (6227) 7-67497 [email protected], CET
Daniel Reinhardt +49 (6227) 7-40201 [email protected], CET
For customers interested in learning more about SAP products:
Global Customer Center: +49 180 534-34-24
United States Only: +1 (800) 872-1SAP (+1-800-872-1727)
Note to editors:
To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels.
This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP's 2025 Annual Report on Form 20-F.
SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see https://www.sap.com/copyright for additional trademark information and notices.
[1] The Q2 2026 results were also impacted by other effects. For details, please refer to the disclosures on page 22 of this document.
[2] The effective tax rate (non-IFRS) is a non-IFRS financial measure and is presented for supplemental informational purposes only. We do not provide an outlook for the effective tax rate (IFRS) due to the uncertainty and potential variability of gains and losses associated with equity securities, which are reconciling items between the two effective tax rates (non-IFRS and IFRS). These items cannot be provided without unreasonable efforts but could have a significant impact on our future effective tax rate (IFRS).
SAP SE (NYSE:SAP) posted its second-quarter results after Thursday’s closing bell, missing analyst estimates on the top and bottom lines. Here’s a look at the key figures from the quarter.
SAP stock is moving. Watch the price action here. SAP reported quarterly earnings of $1.85 per share, which missed the consensus estimate of $2.01 by 7.96%, according to Benzinga Pro data.
Quarterly revenue came in at $11.48 billion, which just missed the Street estimate of $11.49 billion and was up from $10.24 billion in the same period last year.
SAP reported the following second quarter highlights:
“We delivered another quarter of strong current cloud backlog growth, up 26% at constant currencies. This performance is underpinned by our Autonomous Enterprise strategy with strong momentum across our Autonomous Suite as well as our Business AI Platform,” said CEO Christian Klein.
Looking AheadSAP expects sees constant currencies total revenue growth in 2026 to remain at similar levels as in 2025 (10.6%) and to accelerate in 2027.
SAP Stock Price Activity: According to data from Benzinga Pro, SAP stock was up 1.52% to $148.60 in Thursday’s extended trading.
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SAP zveřejní výsledky za 2. čtvrtletí 2026 23. července; investoři sledují růst cloudu, AI a marží. Firma zároveň čelí riziku zpomalení cloudových tržeb a poklesu příjmů ze softwarové podpory.
Key Takeaways SAP reports Q2 2026 results on July 23 as cloud growth, AI progress and margins remain in focus.SAP is seeing strong demand for cloud ERP, AI offerings and S/4HANA migrations supporting growth.SAP faces slower cloud tailwinds, geopolitical risks and declining software support revenue. SAP SE (SAP - Free Report) is scheduled to post results for the second quarter of 2026 on July 23, after market close.
The Zacks Consensus Estimate for second-quarter earnings is $2 per share, indicating a 17.6% increase from the year-ago reported number. The Zacks Consensus Estimate for revenues is currently pinned at $11.4 billion, implying a 11.4% jump from the year-ago figure.
SAP's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 6.5%. Shares of the company have plunged 48.2% in the past year compared with the Computers - Software industry's loss of 29.4%.
Image Source: Zacks Investment Research
Cloud Momentum, AI Strategy & Margins Under the SpotlightSAP’s cloud-first strategy, successful migration of customers to subscription-based offerings and disciplined cost management are likely to have cushioned its performance in the second quarter. The rapid adoption of Rise with SAP and Grow with SAP solutions is driving sales, while SAP Business AI, Business Data Cloud and Sovereign Cloud are gaining solid traction. In the first quarter, the cloud backlog rose 25% and cloud revenue increased 27%. Cloud ERP Suite revenue accelerated 30%, driven by strong demand, with more than 70% of order entry coming from public cloud solutions.
Another major focus will be customer adoption of SAP S/4HANA, the company's next-generation ERP platform. Every successful migration not only increases cloud revenue but also creates opportunities to cross-sell additional SAP products. Key indicators include the number of S/4HANA customers, cloud migration rates, new enterprise wins and expansion within existing customers. AI monetization strategy is also paying off. SAP believes broader adoption of its AI-powered autonomous suite across industries will accelerate long-term growth. It is leveraging AI across engineering, customer support and sales to boost productivity and streamline operations, targeting €2 billion in efficiencies by 2028 through AI-driven transformation.
In May, SAP made plans to make its sustainability AI agents generally available by the end of 2026. Currently in beta, the agents have delivered strong results, including a 50% reduction in packaging compliance review time, scenario simulations cut from a day to 20 minutes, up to 80% less manual GHS classification effort and more than 20% fewer packaging compliance errors.
SAP's frequent acquisitions strengthen its master data governance capabilities across SAP and non-SAP environments, while its open-platform strategy protects proprietary expertise and enables partner and customer innovation. In May, SAP agreed to acquire Prior Labs to strengthen its leadership in Tabular Foundation Models. As part of the deal, SAP will invest more than €1 billion over the next four years to help Prior Labs grow into a leading AI research lab focused on structured business data, while continuing to operate independently. SAP also agreed to acquire Dremio to strengthen SAP Business Data Cloud with faster, real-time analytics and AI capabilities by better integrating SAP and non-SAP data. Financial details were not disclosed, and the deal is awaiting regulatory approval.
Profitability has become an equally important investment theme. SAP has undertaken significant restructuring efforts over the past two years aimed at improving operational efficiency while reallocating resources toward high-growth cloud and AI initiatives. In the first quarter, non-IFRS cloud gross profit increased 20% year over year, while operating profit rose 17%, boosting the margin to 30%.
However, quarter-specific cloud revenue tailwinds may lead to slower growth in the second quarter. Additionally, geopolitical tensions, especially the Middle East conflict, could disrupt supply chains, delay customer spending decisions and adversely impact deal activity. While SAP is not fully protected from these disruptions, the increased economic uncertainty also makes it more difficult to accurately predict the company’s quarterly performance.
Although SAP maintains a strong position and pipeline in this area, these more complex, regulated deals—particularly in government, defense and sensitive industries—take longer to negotiate, deploy and scale compared to standard cloud offerings. Some of its businesses also rely on an operational cyberspace, which exposes them to issues resulting from cybersecurity breaches, affecting both their reputation and the time and resources needed to resolve legal claims. Meanwhile, complex data integration, hybrid ERP environments and strict compliance demands make AI implementation more difficult, potentially slowing enterprise adoption.
Furthermore, software support revenue is likely to decline faster as more customers shift to the cloud.
What Our Model Predicts for SAPOur proven model does not predict an earnings beat for SAP this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.
SAP has an Earnings ESP of -1.25% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable CombinationHere are some companies with the right combination of elements to post an earnings beat in their upcoming releases.
Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +7.22% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CINF is set to report quarterly numbers on July 27, after market close. The Zacks Consensus Estimate for Cincinnati Financial’s second-quarter 2026 earnings is pegged at $1.82 per share, indicating a year-over-year decrease of 7.6%. Its earnings beat estimates in each of the past four quarters, delivering an average surprise of 27.5%. The Zacks Consensus Estimate for CINF's revenues is pegged at $3.01 billion, indicating an 8.4% increase from the year-ago reported figure.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +10.88% and a Zacks Rank #3 at present. ALL is gearing up for quarterly results on Aug. 5, after market close.
The Zacks Consensus Estimate for Allstate’s second-quarter 2026 earnings is pegged at $5.33 per share, indicating a year-over-year decrease of 10.3%. Its earnings beat estimates in each of the last four reported quarters, delivering an average surprise of 51.1%. The Zacks Consensus Estimate for ALL's revenues is pegged at $17.73 billion, indicating a 5.7% increase from the year-ago reported figure.
Chubb Limited (CB - Free Report) has an Earnings ESP of +1.09% and a Zacks Rank of #3 at present. CB is set to report quarterly earnings on July 21, after market close.
The Zacks Consensus Estimate for Chubb’s second-quarter 2026 earnings is pegged at $6.6 per share, indicating a year-over-year increase of 7.5%. Its earnings beat estimates in each of the last four reported quarters, delivering an average surprise of 12.4%. The Zacks Consensus Estimate for Chubb's revenues is pegged at $15.89 billion, indicating a 7.3% increase from the year-ago reported figure.
