Erste Group Bank Forecasts SAP’s FY2026 Earnings (NYSE:SAP)

SAP SE (NYSE:SAP) – Erste Group Bank reduced their FY2026 EPS estimates for SAP in a research report issued to clients and investors on Thursday, October 8th. Erste Group Bank analyst H. Engel now anticipates that the software maker will earn $7.92 per share for the year, down from their previous estimate of $8.10. The consensus estimate for SAP’s current full-year earnings is $8.00 per share. Erste Group Bank also issued estimates for SAP’s FY2027 earnings at $9.32 EPS.

A number of other equities research analysts have also recently weighed in on SAP. TD Cowen restated a “buy” rating on shares of SAP in a report on Friday, July 24th. Argus set a $265.00 price objective on SAP in a report on Thursday, September 10th. BMO Capital Markets boosted their target price on SAP from $177.00 to $235.00 and gave the stock an “outperform” rating in a research report on Thursday, October 8th. Morgan Stanley reiterated an “overweight” rating on shares of SAP in a research report on Friday, August 21st. Finally, Barclays upped their target price on SAP from $242.00 to $243.00 and gave the company an “overweight” rating in a report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $264.71.

SAP Price Performance

Shares of NYSE:SAP opened at $220.32 on Tuesday. The business’s 50 day simple moving average is $212.22 and its 200-day simple moving average is $184.37. The firm has a market capitalization of $270.66 billion, a price-to-earnings ratio of 28.88, a price-to-earnings-growth ratio of 2.63 and a beta of 1.13. The company has a debt-to-equity ratio of 0.19, a current ratio of 1.15 and a quick ratio of 1.15. SAP has a 12 month low of $144.97 and a 12 month high of $281.36.

SAP (NYSE:SAP) last issued its earnings results on Wednesday, July 22nd. The software maker reported $1.82 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $2.00 by ($0.18). SAP had a net margin of 20.88% and a return on equity of 17.07%. The company had revenue of $11.27 billion during the quarter, compared to analysts’ expectations of $11.30 billion. During the same period last year, the business posted $1.50 earnings per share. The company’s quarterly revenue was up 9.4% on a year-over-year basis.

Hedge Funds Weigh In On SAP

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Bank of America Corp DE increased its position in SAP by 15.9% during the first quarter. Bank of America Corp DE now owns 2,018,383 shares of the software maker’s stock worth $345,567,000 after buying an additional 276,263 shares in the last quarter. Tidal Investments LLC raised its holdings in shares of SAP by 18.5% in the second quarter. Tidal Investments LLC now owns 1,214,315 shares of the software maker’s stock worth $187,138,000 after acquiring an additional 189,591 shares during the last quarter. Arrowstreet Capital Limited Partnership purchased a new stake in shares of SAP in the first quarter valued at $150,701,000. Ruane Cunniff & Goldfarb L.P. lifted its position in shares of SAP by 1,532.8% in the first quarter. Ruane Cunniff & Goldfarb L.P. now owns 749,909 shares of the software maker’s stock valued at $128,392,000 after acquiring an additional 703,982 shares in the last quarter. Finally, Principal Financial Group Inc. lifted its position in shares of SAP by 48.2% in the first quarter. Principal Financial Group Inc. now owns 550,531 shares of the software maker’s stock valued at $94,257,000 after acquiring an additional 179,040 shares in the last quarter.

SAP News Summary

Here are the key news stories impacting SAP this week:

• Positive Sentiment: AI ecosystem momentum: Lemongrass says it accounts for nearly one in five partner AI agents published in SAP’s Discovery Center, suggesting early traction for SAP Business AI and potential support for future cloud demand. Lemongrass Accounts for Nearly 1 in 5 Partner AI Agents Published in SAP Discovery Center
• Positive Sentiment: Expanded customer-engagement partnership: Sinch added RCS messaging to its native SAP Engagement Cloud integration, expanding SAP’s omnichannel capabilities and creating opportunities for AI-driven customer communications. Sinch expands SAP partnership with RCS integration for SAP Engagement Cloud
• Positive Sentiment: Quarterly results could provide a catalyst: SAP is scheduled to report quarterly earnings, following a stronger-than-feared second quarter in which current cloud backlog rose 26% and cloud revenue increased 24%. SAP Set to Release Quarterly Earnings
• Neutral Sentiment: Cybersecurity response: SAP patched a critical CVSS 10 vulnerability in its Cloud SDK for Python that could allow OAuth credential theft and, in some cases, system takeover. The patch limits immediate exposure, but the incident highlights security risks for SAP’s cloud ecosystem. SAP patches critical Python SDK flaw
• Negative Sentiment: Competitive AI criticism: Workday CEO Aneel Bhusri reportedly labeled Oracle and SAP “AI dinosaurs,” reinforcing concerns that large enterprise-software providers may be slower than newer competitors to capture AI-driven growth. Workday CEO calls Oracle and SAP AI dinosaurs
• Negative Sentiment: Earnings estimates were reduced: Erste Group lowered its FY2026 EPS forecast to $7.92 from $8.10 and FY2027 EPS to $9.32 from $9.66, signaling softer near-term expectations. SAP analyst estimates
• Negative Sentiment: Execution and valuation remain risks: Analysts note SAP’s rebound still leaves the stock below its 2025 peak, while its AI strategy must overcome the scale of its workforce, slower cloud-backlog growth and macro/geopolitical uncertainty. SAP Q3 Preview

SAP Company Profile

SAP SE is a German enterprise software company headquartered in Walldorf, Germany. Founded in 1972 by five former IBM employees, SAP develops technology that helps organizations manage finance, procurement, supply chains, human resources, customer relationships and other core business operations.

The company’s principal offerings include SAP S/4HANA Cloud enterprise resource planning software, the SAP Business Technology Platform, and cloud applications such as SAP SuccessFactors for human capital management, SAP Ariba for procurement, SAP Concur for travel and expense management, and SAP Customer Experience solutions.