Erste Group Bank Issues Pessimistic Outlook for SAP Earnings

Key Points

• Erste Group Bank lowered its FY2026 EPS forecast for SAP to $8.10 from $8.24, below the current consensus estimate of $8.17.
• Analyst sentiment remains broadly positive, with SAP carrying a “Moderate Buy” consensus rating and an average price target of $255.67, despite Barclays reducing its target to $242.
• SAP’s latest quarterly results missed expectations, reporting $1.82 in EPS versus the $2.00 consensus and revenue of $11.27 billion, although revenue increased 9.4% year over year.

SAP SE (NYSE:SAP - Free Report) - Investment analysts at Erste Group Bank reduced their FY2026 earnings estimates for SAP in a research report issued to clients and investors on Friday, September 18th. Erste Group Bank analyst H. Engel now forecasts that the software maker will earn $8.10 per share for the year, down from their previous forecast of $8.24. The consensus estimate for SAP's current full-year earnings is $8.17 per share.

A number of other equities analysts have also recently issued reports on the company. Barclays cut their target price on SAP from $255.00 to $242.00 and set an "overweight" rating on the stock in a report on Monday, July 27th. Wells Fargo & Company reaffirmed an "overweight" rating on shares of SAP in a research note on Wednesday, August 12th. Argus set a $265.00 target price on shares of SAP in a report on Thursday, September 10th. Weiss Ratings upgraded SAP from a "hold (c-)" rating to a "hold (c)" rating in a research note on Thursday, July 30th. Finally, TD Cowen reissued a "buy" rating on shares of SAP in a report on Friday, July 24th. One analyst has rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and eight have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $255.67.

SAP Trading Down 0.1%

Shares of SAP stock opened at $209.24 on Tuesday. The stock has a market capitalization of $257.05 billion, a PE ratio of 26.29, a price-to-earnings-growth ratio of 2.49 and a beta of 1.14. SAP has a 52 week low of $144.97 and a 52 week high of $281.36. The stock has a 50 day moving average price of $197.83 and a two-hundred day moving average price of $181.36. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.15 and a current ratio of 1.15.

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Fisher Asset Management LLC lifted its position in shares of SAP by 1.2% during the 4th quarter. Fisher Asset Management LLC now owns 14,728,881 shares of the software maker's stock worth $3,577,793,000 after buying an additional 179,550 shares in the last quarter. Bank of America Corp DE increased its position in shares of 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 valued at $345,567,000 after acquiring an additional 276,263 shares during the last quarter. Tidal Investments LLC boosted its holdings in shares of SAP by 18.5% in the 2nd quarter. Tidal Investments LLC now owns 1,214,315 shares of the software maker's stock worth $187,138,000 after buying an additional 189,591 shares during the last quarter. Arrowstreet Capital Limited Partnership purchased a new stake in SAP in the first quarter worth $150,701,000. Finally, Ruane Cunniff & Goldfarb L.P. boosted its holdings in SAP by 1,532.8% in the 1st quarter. Ruane Cunniff & Goldfarb L.P. now owns 749,909 shares of the software maker's stock worth $128,392,000 after buying an additional 703,982 shares during the period.

SAP Company Profile

SAP SE is a German enterprise software company headquartered in Walldorf, Germany. The company develops technology that helps organizations manage core business operations, including finance, procurement, supply chain, manufacturing, human resources, sales and customer relationships.

SAP's portfolio is centered on its cloud-based enterprise resource planning platform, SAP S/4HANA, along with the SAP Business Technology Platform. Its products and services also include SAP SuccessFactors for human resources, SAP Ariba for business-to-business procurement, SAP Concur for travel and expense management, and solutions for customer experience, data management, analytics and artificial intelligence.

SAP was founded in 1972 by five former IBM employees and has grown into a global provider of business software.

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