SAP SE price-consensus-eps-surprise-chart | SAP SE Quote <\/p>\n
SAP secured significant customer wins across its solution portfolio, with new or expanded engagements from leading organizations such as Birlasoft, Capgemini, Haier Group and KaDeWe. <\/p>\n
D\u00f6hler, FANUC Europe,\u00a0Fonterra, Natura Cosm\u00e9ticos, SABESP and TEAG went live on SAP solutions during the quarter. <\/p>\n
SAP’s cloud revenue growth was especially strong in the APJ and EMEA regions and robust in the Americas, with standout performances from Brazil, France, Germany, Italy, India, South Korea and Spain. It remained strong in the United States, Australia and Singapore. <\/p>\n
Margin Details <\/p>\n
Non-IFRS gross profit of \u20ac7.3 billion increased 9% from the year-ago quarter (up 11% at cc). <\/p>\n
Non-IFRS cloud gross profit increased 22% year over year to \u20ac4.7 billion (up 23% at cc). Non-IFRS cloud gross margin fell 0.6 percentage points to 74.6%. <\/p>\n
SAP’s non-IFRS operating profit rose 7% (up 9% at cc) to \u20ac2.7 billion, while margin decreased to 27.8%. <\/p>\n
Balance Sheet & Cash Flow <\/p>\n
As of June 30, 2026, SAP had cash and cash equivalents of \u20ac11.6 billion compared with \u20ac10.1 billion as of March 31, 2026. <\/p>\n
In the second quarter, the company generated operating cash of \u20ac3.2 billion, up 22% year over year. Free cash flow, a key metric of operational strength, rose 27% to \u20ac3 billion during the quarter. <\/p>\n
SAP also continues returning capital to shareholders. Its newly authorized \u20ac10 billion share repurchase program remains active. As of June 30, the company had repurchased more than 16.28 million shares and spent approximately \u20ac2.6 billion. <\/p>\n
SAP’s 2026 Guidance Reaffirmed Despite Lower Profit Outlook <\/p>\n
The company lowered its non-IFRS operating profit outlook from \u20ac11.9\u2013\u20ac12.3 billion to \u20ac11.8\u2013\u20ac12.2 billion. The revision stems almost entirely from the acquisitions of Dremio and Prior Labs, which closed in July. Management expects these acquisitions to create a dilutive impact exceeding \u20ac100 million during 2026. <\/p>\n
Despite lowering operating profit guidance slightly, SAP maintained nearly all of its major financial targets. Management still expects cloud revenue between \u20ac25.8 billion and \u20ac26.2 billion, cloud and software revenue between \u20ac36.3 billion and \u20ac36.8 billion and approximately \u20ac10 billion in free cash flow. <\/p>\n
Additionally, SAP expects cloud backlog growth to remain strong, though slightly slower, total revenue growth to match 2025 levels, revenue acceleration in 2027 and operating expense growth to remain below revenue growth. <\/p>\n
Nonetheless, the company acknowledged that its outlook assumes a near-term de-escalation of geopolitical tensions in the Middle East. Any prolonged conflict could negatively impact enterprise spending or business operations. <\/p>\n
SAP’s Zacks Rank <\/p>\n
SAP currently carries a Zacks Rank #4 (Sell). <\/p>\n
You can see\u00a0the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. <\/p>\n
Recent Performances <\/p>\n
America Movil, S.A.B. de C.V. AMX reported net income per ADR of 47 cents for the second quarter of 2026, up from 38 cents in the prior-year quarter. The\u00a0earnings\u00a0figure missed the Zacks Consensus Estimate of 52 cents. Total quarterly revenues rose 3.1% to Mex$241,071 million, driven by rapid momentum across the Service and Equipment segments. <\/p>\n
BlackBerry Limited\u00a0BB reported\u00a0first-quarter fiscal 2027\u00a0non-GAAP earnings per share (EPS) of 4 cents. The figure beat the company’s estimate of 2-3 cents. In the year-ago quarter, it reported a non-GAAP EPS of 2 cents. The Zacks Consensus Estimate was pegged at 3 cents per share. BlackBerry generated $152.9 million in fiscal first-quarter revenue, representing 26% year-over-year growth. <\/p>\n
Iridium Communications\u00a0IRDM reported\u00a0EPS of 9 cents for the second quarter of 2026, missing the Zacks Consensus Estimate of 26 cents. The bottom line also compared unfavorably with the prior-year quarter’s figure of 20 cents. Iridium reported second-quarter revenue of $225.2 million, representing 4% year-over-year growth. The consensus mark was pinned at $221.2 million. <\/p>\n
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report<\/a> <\/p>\n SAP SE (SAP) : Free Stock Analysis Report<\/a> <\/p>\n America Movil, S.A.B. de C.V. Unsponsored ADR (AMX) : Free Stock Analysis Report<\/a> <\/p>\n Iridium Communications Inc (IRDM) : Free Stock Analysis Report<\/a> <\/p>\n BlackBerry Limited (BB) : Free Stock Analysis Report<\/a> <\/p>\n This article originally published on Zacks Investment Research (zacks.com).<\/a> <\/p>\n