SAP SE (SAP) Reports Q2 EPS of EUR1.59; offers outlook

SAP SE (NYSE: SAP) reported Q2 EPS of EUR1.59, versus EUR2.05 reported last year. Revenue for the quarter came in at EUR9.88 billion versus the consensus estimate of EUR11.44 billion.

Financial Outlook

For 2026, SAP is updating its non-IFRS operating profit outlook to reflect the dilutive impact of the Dremio and Prior Labs acquisitions closed in July, which is projected to be in excess of €100 million. SAP now expects:

€11.8 – 12.2 billion non-IFRS operating profit at constant currencies (2025: €10.42 billion), up 13% to 17% at constant currencies. The previous outlook was €11.9 – 12.3 billion.

SAP continues to expect:

€25.8 – 26.2 billion cloud revenue at constant currencies (2025: €21.02 billion), up 23% to 25% at constant currencies.
€36.3 – 36.8 billion cloud and software revenue at constant currencies (2025: €32.54 billion), up 12% to 13% at constant currencies.
Approximately €10 billion free cash flow at actual currencies (2025: €8.24 billion).
An effective tax rate (non-IFRS) of approximately 29% (2025: 30.5%)[2].
Constant currencies current cloud backlog growth to slightly decelerate (2025: 25%).

SAP further expects:

Constant currencies total revenue growth in 2026 to remain at similar levels as in 2025 (10.6%) and to accelerate in 2027.
Total operating expenses to grow at 80% to 90% of total revenue growth in 2027.
Constant currencies software support revenue decline rate to accelerate in the coming years as a consequence of an acceleration of customers transforming to the cloud.

For earnings history and earnings-related data on SAP SE (SAP) click here.

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