SAP (NYSE:SAP) Announces Quarterly Earnings Results

24 Apr 2026, 16:00 by Sarita Garza · The Markets Daily

SAP (NYSE:SAP – Get Free Report) released its quarterly earnings data on Thursday. The software maker reported $1.99 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.92 by $0.07, FiscalAI reports. The firm had revenue of $11.19 billion for the quarter, compared to analyst estimates of $11.21 billion. SAP had a return on equity of 16.54% and a net margin of 19.92%.The business’s revenue for the quarter was up 6.0% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.52 earnings per share.

Here are the key takeaways from SAP’s conference call:

SAP reported a strong Q1 — current cloud backlog rose 25% to €21.9bn, cloud revenue grew 27% (close to €6bn), total revenue was €9.6bn (+12%), and operating margin reached 30% (operating profit €2.9bn, +24%).
Management positioned Business AI as the core strategic priority, announcing planned portfolio changes at Sapphire to embed SAP’s ERP domain knowledge into AI agents and signaling a gradual shift toward more consumption‑based cloud revenue rather than a disruptive transition.
Executives cautioned that the ongoing Middle East conflict — and especially a prolonged closure of the Strait of Hormuz — could materially disrupt supply chains and customer spending, creating downside risk to 2026 bookings and cloud growth despite management maintaining guidance assuming near‑term de‑escalation.
SAP cited concrete AI and productivity wins that support monetization and margin upside — customer examples (e.g., Daimler Trucks €70m impact) and faster ERP migrations with partners, plus internal gains (developers +30%, 20% of support tickets resolved autonomously) and a target of ~€2bn one‑way efficiencies by end‑2028.

SAP Stock Performance

Shares of NYSE SAP traded up $9.40 during trading hours on Friday, reaching $172.65. 3,612,266 shares of the stock were exchanged, compared to its average volume of 3,216,107. The firm has a market capitalization of $212.11 billion, a price-to-earnings ratio of 24.56, a P/E/G ratio of 1.95 and a beta of 1.24. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.16 and a current ratio of 1.16. SAP has a 52 week low of $160.66 and a 52 week high of $313.28. The stock’s fifty day simple moving average is $184.09 and its 200 day simple moving average is $223.38.

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 paid a dividend of $2.9291 per share. This represents a dividend yield of 175.0%. This is an increase from SAP’s previous annual dividend of $2.54. The ex-dividend date is Tuesday, May 5th. SAP’s dividend payout ratio is 26.10%.

Key SAP News

Here are the key news stories impacting SAP this week:

Positive Sentiment: Q1 beat on profit and solid revenue: SAP reported $1.99 EPS vs. $1.92 est. and revenue roughly in line with expectations, with operating profit up ~17% — the numbers beat consensus and underpin the rally. MarketBeat Q1 coverage
Positive Sentiment: Cloud growth is driving confidence: Current cloud backlog rose to €21.9B (+20%, +25% cc) and cloud revenue grew strongly (reported +19%, +27% cc), showing recurring revenue momentum that reduces cyclical risk. PR Newswire Quarterly Statement
Positive Sentiment: Management message eases AI fears: CEO comments in media interviews stressed SAP’s AI-readiness and differentiated positioning, helping investors view SAP as a beneficiary — not a casualty — of AI disruption. CNBC CEO interview
Neutral Sentiment: Market commentary and rebound: Major outlets (WSJ, Barron’s, Bloomberg) frame the move as a rebound for SAP and the cloud segment after a weak software session, adding broader market context but not new fundamental data. WSJ coverage
Neutral Sentiment: Earnings materials and call available: Investors can review the earnings slide deck and call transcript for details on guidance, segment trends and margins (useful for modelling but not new market-moving headlines). Slide deck
Negative Sentiment: Some analyst target trims: BMO lowered its price target from $210 to $200 but kept an “outperform” rating, which signals cautious optimism but reduces upside expectations. Benzinga note
Negative Sentiment: Analysts trimmed targets ahead of the print: Several brokers trimmed price targets before earnings, a reminder that consensus expectations and estimates remain in flux despite the beat. InsiderMonkey on target trims

Wall Street Analyst Weigh In

Several research firms have issued reports on SAP. Wall Street Zen lowered SAP from a “buy” rating to a “hold” rating in a research note on Tuesday, February 24th. HSBC upgraded SAP from a “hold” rating to a “buy” rating in a research note on Wednesday. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of SAP in a research note on Friday, January 30th. Santander upgraded SAP from a “neutral” rating to an “outperform” rating in a research note on Friday. Finally, TD Cowen restated a “buy” rating on shares of SAP in a research note on Thursday, April 16th. Two investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat, SAP has an average rating of “Moderate Buy” and an average price target of $287.75.

Check Out Our Latest Analysis on SAP

Hedge Funds Weigh In On SAP

A number of large investors have recently made changes to their positions in SAP. Riggs Asset Managment Co. Inc. increased its stake in shares of SAP by 83.8% during the second quarter. Riggs Asset Managment Co. Inc. now owns 147 shares of the software maker’s stock worth $45,000 after purchasing an additional 67 shares during the period. JPL Wealth Management LLC bought a new position in shares of SAP during the third quarter worth approximately $49,000. Greenline Wealth Management LLC bought a new position in shares of SAP during the fourth quarter worth approximately $50,000. Transamerica Financial Advisors LLC increased its stake in shares of SAP by 101.6% during the fourth quarter. Transamerica Financial Advisors LLC now owns 250 shares of the software maker’s stock worth $61,000 after purchasing an additional 126 shares during the period. Finally, Colonial Trust Co SC increased its stake in shares of SAP by 194.2% during the fourth quarter. Colonial Trust Co SC now owns 253 shares of the software maker’s stock worth $62,000 after purchasing an additional 167 shares during the period.

SAP Company Profile

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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.