SAP (NYSE:SAP) Shares Gap Up on Earnings Beat

SAP SE (NYSE:SAP) gapped up before the market opened on Friday following a better than expected earnings announcement. The stock had previously closed at $163.25, but opened at $175.10. SAP shares last traded at $173.2120, with a volume of 1,643,345 shares.

The software maker reported $1.99 earnings per share for the quarter, beating analysts’ consensus estimates of $1.92 by $0.07. SAP had a return on equity of 16.54% and a net margin of 19.92%.The firm had revenue of $11.19 billion for the quarter, compared to analysts’ expectations of $11.21 billion. During the same quarter last year, the firm earned $1.52 earnings per share. The firm’s revenue for the quarter was up 6.0% compared to the same quarter last year.

SAP Increases Dividend

The company also recently announced an annual dividend, which will be paid on Friday, May 15th. Investors of record on Tuesday, May 5th will be issued a $2.9291 dividend. The ex-dividend date is Tuesday, May 5th. This is an increase from SAP’s previous annual dividend of $2.54. This represents a yield of 175.0%. SAP’s payout ratio is 26.10%.

More SAP News

Here are the key news stories impacting SAP this week:

• Positive Sentiment: Q1 results showed robust cloud growth (cloud revenue +27% cc) and a 25% increase in current cloud backlog, supporting the company’s recurring revenue story. SAP Quarterly Statement Q1 2026
• Positive Sentiment: Operating profit rose ~17% in Q1 as cloud demand remained resilient, reinforcing margin strength in the face of macro uncertainty. SAP reports 17% rise in first-quarter profit (Reuters)
• Positive Sentiment: Major business press highlighted cloud resilience and called the quarter a reassurance that SAP can weather AI-related and geopolitical risks, which supports the long-term investment thesis. SAP Shares Climb on Cloud Business Resilience (WSJ)
• Neutral Sentiment: CEO commentary emphasizes SAP’s AI positioning and go-to-market strategy — positive for medium-term narrative but not an immediate catalyst. SAP CEO interview (CNBC)
• Neutral Sentiment: Coverage-roundups and earnings transcripts provide detail for investors to dig into guidance and backlog dynamics; useful for fundamentals but mixed in directional impact. Q1 2026 Earnings Call Transcript (Seeking Alpha)
• Negative Sentiment: Analysts trimmed price targets ahead of/after the print and BMO lowered its target from $210 to $200 (still “outperform”), which likely weighed on the stock despite the beat. (BMO update: target cut to $200)
• Negative Sentiment: Total revenue missed the street by a small margin ($11.19B vs. $11.21B), and several outlets noted analysts trimming targets — prompting profit-taking after recent gains. SAP earnings summary (MarketBeat)
• Negative Sentiment: Broader software-sector weakness and a recent pullback in the group pressured SAP despite company-specific positives, amplifying the down move. SAP Stock Rebounds From Software Slump After Earnings (Barron’s)

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the company. JPMorgan Chase & Co. reiterated a “neutral” rating on shares of SAP in a report on Tuesday, March 24th. Barclays reduced their target price on SAP from $283.00 to $256.00 and set an “overweight” rating on the stock in a report on Monday. TD Cowen restated a “buy” rating on shares of SAP in a research note on Thursday, April 16th. Weiss Ratings cut SAP from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, March 16th. Finally, Wall Street Zen cut SAP from a “buy” rating to a “hold” rating in a research note on Tuesday, February 24th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating and seven have given a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $287.75.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SAP. Brighton Jones LLC lifted its stake in shares of SAP by 91.1% in the fourth quarter. Brighton Jones LLC now owns 2,633 shares of the software maker’s stock worth $648,000 after acquiring an additional 1,255 shares in the last quarter. Baird Financial Group Inc. acquired a new position in shares of SAP in the first quarter worth about $242,000. AQR Capital Management LLC lifted its stake in shares of SAP by 49.0% in the first quarter. AQR Capital Management LLC now owns 16,309 shares of the software maker’s stock worth $4,378,000 after acquiring an additional 5,363 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC acquired a new position in shares of SAP in the first quarter worth about $2,681,000. Finally, Sivia Capital Partners LLC lifted its stake in shares of SAP by 2.3% in the second quarter. Sivia Capital Partners LLC now owns 3,050 shares of the software maker’s stock worth $928,000 after acquiring an additional 69 shares in the last quarter.

SAP Stock Performance

The company has a debt-to-equity ratio of 0.13, a current ratio of 1.16 and a quick ratio of 1.16. The stock has a market capitalization of $212.27 billion, a P/E ratio of 24.63, a price-to-earnings-growth ratio of 1.95 and a beta of 1.24. The company has a fifty day moving average of $184.09 and a two-hundred day moving average of $223.38.

About SAP

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.