SAP is set to release its second-quarter and first half 2026 earnings report after the market closes on July 23. Here’s Morningstar’s take on what to watch for in SAP’s earnings and the outlook for its stock.
SAP SAP
Analyst: Rob Hales, CFA
- Fair Value Estimate: EUR 265.00
- Morningstar Rating: ★★★★★
- Economic Moat: Wide
- Morningstar Uncertainty Rating: Medium
SAP Earnings Release Date
SAP will release its results on July 23 after the close of trading, at around 10:05 PM CEST.
What to Watch for in SAP’s Q2 Earnings
- Cloud revenue growth and current cloud backlog growth remain key:
- Cloud revenue growth: Q2 consensus is 22%.
- Current cloud backlog growth: 2026 guidance is for constant currency growth to slightly decelerate from the 2025 level of 25%. So consensus likely expects around 23-24% in Q2.
- Investors will be watching for any signs that customers are being forced to reprioritize capex budgets to hardware from software given the price spikes caused by the memory shortage. IBM IBM could be the canary in the coal mine with its recent profit warning causing its shares to fall 25% on the day.
- The market will be looking for any negative signs on business momentum related to the war in Iran and the subsequent higher energy costs, given SAP’s manufacturing-heavy client base. So any comments like “elongated sales cycles” that would put doubt in 2026 guidance would likely cause a sharp reaction the stock price.
- Investors will be watching for any hints of changes to the margin outlook. During the quarter, Bloomberg reported that SAP was restricting new hiring and cutting non-AI business travel to redirect those savings into AI investment.
