Erste Group Bank Has Bearish Outlook for SAP FY2027 Earnings

Key Points

• Erste Group Bank trimmed its FY2027 EPS estimate for SAP slightly to $9.83 from $9.85, signaling a more cautious outlook on future earnings. The new forecast is still above the current consensus estimate of $8.35 per share.
• Analyst sentiment on SAP remains mixed, with several firms recently upgrading or reiterating bullish ratings while others have cut their views to neutral or hold. Overall, MarketBeat shows SAP with an average rating of “Moderate Buy” and a price target of $288.
• SAP shares were trading at $173.63 at the time of the report, well below the stock’s 52-week high of $313.28. The company also recently raised its annual dividend to $2.9291 per share.

SAP SE (NYSE:SAP - Free Report) - Equities researchers at Erste Group Bank reduced their FY2027 earnings estimates for SAP in a research report issued on Tuesday, May 5th. Erste Group Bank analyst H. Engel now expects that the software maker will post earnings of $9.83 per share for the year, down from their prior estimate of $9.85. The consensus estimate for SAP's current full-year earnings is $8.35 per share.

Several other analysts have also commented on SAP. Wall Street Zen raised SAP from a "hold" rating to a "buy" rating in a report on Saturday, May 2nd. TD Cowen reaffirmed a "buy" rating on shares of SAP in a research note on Thursday, April 16th. Piper Sandler lowered SAP from an "overweight" rating to a "neutral" rating in a research report on Tuesday, April 14th. Citigroup lowered shares of SAP from a "buy" rating to a "hold" rating in a report on Friday, January 30th. Finally, Weiss Ratings cut shares of SAP from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Monday, March 16th. Two research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and seven have issued a Hold rating to the company's stock. According to MarketBeat.com, SAP presently has an average rating of "Moderate Buy" and an average price target of $288.00.

SAP Price Performance

Shares of SAP stock opened at $173.63 on Monday. The firm has a market cap of $213.31 billion, a PE ratio of 23.46, a P/E/G ratio of 1.95 and a beta of 1.11. SAP has a twelve month low of $160.66 and a twelve month high of $313.28. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.11. The business has a 50-day moving average price of $179.49 and a 200 day moving average price of $217.10.

SAP (NYSE:SAP - Get Free Report) last issued its quarterly earnings data on Friday, February 27th. The software maker reported $1.99 earnings per share for the quarter. SAP had a net margin of 20.08% and a return on equity of 17.31%. The business had revenue of $11.06 billion during the quarter.

Institutional Trading of SAP

A number of institutional investors have recently made changes to their positions in SAP. Sound Income Strategies LLC raised its stake in SAP by 109.4% in the 4th quarter. Sound Income Strategies LLC now owns 111 shares of the software maker's stock valued at $26,000 after purchasing an additional 58 shares during the last quarter. Abich Financial Wealth Management LLC purchased a new stake in shares of SAP during the third quarter worth $27,000. Copia Wealth Management acquired a new stake in shares of SAP in the third quarter valued at about $28,000. Bayban purchased a new position in shares of SAP in the fourth quarter worth about $28,000. Finally, Guerra Advisors Inc purchased a new position in shares of SAP in the third quarter worth about $31,000.

SAP Increases Dividend

The company also recently announced an annual dividend, which will be paid on Friday, May 15th. Stockholders of record on Tuesday, May 5th will be given a $2.9291 dividend. This represents a dividend yield of 170.0%. This is a boost from SAP's previous annual dividend of $2.54. The ex-dividend date is Tuesday, May 5th. SAP's dividend payout ratio (DPR) is 28.78%.

Trending Headlines about SAP

Here are the key news stories impacting SAP this week:

• Positive Sentiment: SAP is moving deeper into enterprise AI and data infrastructure through acquisitions of Dremio and Prior Labs, which could strengthen its Business Data Cloud and make SAP’s platform more central to customer AI workflows. SAP AI Push Weighs On Valuation As Dremio And Prior Labs Deals Land
• Positive Sentiment: Third-party product launches and certifications, including SAP-certified AI integration tools and AIOps solutions, reinforce that SAP’s ecosystem is expanding around AI-powered operations and connectivity. Governance, not gatekeeping: How SAP brings enterprise-grade safety to AI connectivity
• Positive Sentiment: Management announced upcoming investor events and a financial analyst conference at Sapphire, which could give SAP a venue to explain its AI strategy and reassure investors about execution. SAP Executives to Participate in Upcoming Investor Events
• Neutral Sentiment: Media coverage highlighted SAP’s broader push to build a single, open enterprise data platform, but this is mostly a strategic narrative unless it leads to measurable customer wins or financial guidance.
• Neutral Sentiment: Analyst commentary suggested SAP may be trading at a discount as its cloud transition progresses, which supports the investment case but does not by itself change near-term fundamentals. A Look At SAP XTRA: SAP Valuation As Cloud Transition Creates A Potential Discount
• Negative Sentiment: Some investors are focusing on the fact that SAP’s AI spending and acquisitions could weigh on valuation in the near term, especially if the new assets take time to contribute meaningfully to growth and margins. SAP AI Push Weighs On Valuation As Dremio And Prior Labs Deals Land

SAP Company Profile

SAP SE is a global enterprise software company headquartered in Walldorf, Germany. Founded in 1972 by five former IBM engineers, the company's name is an acronym for Systeme, Anwendungen und Produkte in der Datenverarbeitung (Systems, Applications & Products in Data Processing). SAP develops and sells software and services that help organizations manage business processes across finance, human resources, procurement, manufacturing, supply chain and customer relationships.

SAP's product portfolio spans on‑premises and cloud offerings, anchored by its enterprise resource planning (ERP) solutions such as SAP S/4HANA and the SAP HANA in‑memory database and platform.

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