SAP Stock Drops 4% After Goldman Cuts 2H26 Margin Forecast to 72.8%
SAP•Shares of SAP fell about 4% as Goldman Sachs cut its second-half 2026 gross margin forecast to 72.8% from 73.3% and trimmed full-year EBIT growth to around 15% excluding currency. Goldman maintained Buy rating, kept Q2 organic cloud growth at 23.5%, and held price targets at €230 and ADR $265.
1. Goldman Revises Margin and EBIT Forecasts
Goldman Sachs trimmed SAP’s second-half 2026 gross margin estimate to 72.8% from 73.3% and cut full-year EBIT growth to roughly 15% year-on-year excluding currency, citing higher hardware costs. The firm maintained its Buy rating and price targets at €230 and ADR $265.
2. Cloud Backlog Growth and Acquisition Impact
Goldman kept its Q2 organic cloud backlog growth forecast at 23.5% and lifted reported CCB to 24.8% following the Reltio acquisition. Pending acquisitions of Dremio and Prior Labs are projected to have minimal revenue impact but modestly dilute margins, offset by cost efficiencies.
3. Market Reaction and Outlook
SAP shares fell about 4% after the revisions, with Q2 results scheduled for July 23 under a similar macro backdrop. Long-term confidence remains driven by AI-led tools enhancing SAP’s cloud migration and future conversion rates.
