SAP AG (SAP)
NYSE:SAP
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Earnings Data
Report Date
Jul 16, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
2.06Last Year’s EPS
1.76Same Quarter Last Year
Moderate Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented multiple strong operational and financial achievements: double-digit total revenue growth (+12% to EUR 9.6B), robust cloud momentum (+27% cloud revenue, +25% cloud backlog), material profitability gains (non-IFRS operating profit +24%, 30% operating margin), strong customer wins and demonstrable AI-driven customer and internal productivity gains. These positives are tempered by macro and geopolitical uncertainty (Middle East conflict, potential Strait of Hormuz disruption), a planned modest deceleration in cloud growth, a sharp decline in software licenses (-33%), and near-term services revenue pressure. Management reiterated full-year guidance but noted it is contingent on a near-term stabilization and on contributions from the Reltio acquisition. Overall, the operational and financial strengths outweigh the risks discussed, though meaningful uncertainty remains.Company Guidance
Strong Cloud Backlog Growth
Current cloud backlog increased 25% year-on-year to EUR 21.9 billion, providing healthy forward visibility for cloud revenue.
Robust Cloud Revenue Expansion
Cloud revenue grew 27% year-on-year, nearly crossing the EUR 6 billion mark for the quarter; Cloud ERP Suite revenue accelerated 30% and accounted for 87% of cloud revenue growth.
Total Revenue and Profitability Gains
Total revenue reached EUR 9.6 billion, up 12% year-on-year. Non-IFRS operating profit rose 24% to EUR 2.9 billion with an operating margin of 30% (up 2.9 percentage points). IFRS operating profit increased 17% to EUR 2.7 billion.
Earnings and Cash Flow Strength
Non-IFRS EPS increased 20% to EUR 1.72 and IFRS EPS rose 9% to EUR 1.66. Free cash flow was strong at EUR 3.2 billion (Q1), despite a EUR 408 million legal settlement payout.
Market Share and Order Momentum
Public cloud order entry accounted for over 70% of quarterly volume; indirect channel order entry grew faster than direct and represented almost 30% of total order entry. Gartner found SAP grew 15 percentage points faster versus the global enterprise applications cloud market in 2025.
Large Customer Wins and Go-Lives
Multiple high-profile wins (e.g., ConocoPhillips, Thales, Air Liquide, Bristol-Myers Squibb, PayPal, Hyundai Europe, Aptiv) and successful go-lives including Samsung Electro-Mechanics, Alibaba Cloud, Fonterra and ExxonMobil (SuccessFactors rollout supporting 60,000+ users).
Tangible Business AI Customer Impact
Multiple client AI case studies showed material benefits: Daimler Trucks bid-win rates rose from 10% to >40% (EUR 70M impact in 12 months); Hormann cut manual tender work up to 70%; Martur Fompak invoicing >9x faster and product innovation 30% faster; KPMG ERP migrations up to 20% faster; EY reduced project timelines up to 30%.
Internal AI Productivity Gains
Internal AI adoption improved developer productivity (>30%), support productivity (+12%) with AI assisting 100% of cases and resolving 20% autonomously, consultants saving ~1 day/week across ~80,000 services colleagues, demand generation saved 83,000 hours and added ~EUR 50 million to pipeline. Company set target for ~EUR 2 billion run-rate efficiencies by end of 2028.
Healthy Gross Margins
IFRS cloud gross margin was 74.6% and non-IFRS cloud gross margin was 75.2%, roughly stable versus prior period.
SAP Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
SAP Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 23, 2026 | $163.25 | $175.26 | +7.36% |
Jan 29, 2026 | $236.11 | $200.21 | -15.20% |
Oct 22, 2025 | $276.22 | $278.53 | +0.84% |
Jul 22, 2025 | $306.29 | $290.63 | -5.11% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does SAP AG (SAP) report earnings?
SAP AG (SAP) is schdueled to report earning on Jul 16, 2026, Before Open (Confirmed).
What is SAP AG (SAP) earnings time?
SAP AG (SAP) earnings time is at Jul 16, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is SAP EPS forecast?
SAP EPS forecast for the fiscal quarter 2026 (Q2) is 2.06.
