SAP released its third-quarter results last night. Europe’s largest software company exceeded expectations on virtually all fronts and, for the first time in its history, posted more than €10 billion in revenue in a single quarter. The stock price is trading around €206 this morning, its highest level since January. This means the first price target from our previous article has been reached. Today, we’ll examine the earnings, analysts’ views, and what our model predicts for the next phase.

You can find the background information in our August 20, 2026, article titled “SAP: AI Engine Drives Cloud Recovery, Stock Price Back on Track to €300.” We recommend reading this article first. You can find the article HERE.

How did SAP’s quarterly results turn out?

Total revenue rose 13% in the third quarter to €10.3 billion. Analysts had expected €10.1 billion. The cloud remains the driving force behind this growth. Cloud revenue grew 26% to €6.67 billion. The flagship cloud product, Cloud ERP Suite, grew by as much as 29% and now accounts for 89% of all cloud revenue. Sales of traditional software licenses fell by 9%. This is no cause for concern; it is the result of customers’ deliberate shift toward cloud subscriptions.

Profitability also improved. Adjusted operating profit rose by 18% to €3.03 billion, while analysts had expected €2.94 billion. Earnings per share came in at €1.96, compared to an expectation of €1.81. SAP has thus once again demonstrated that revenue and profit can grow simultaneously.

The most important figure for investors is the so-called current cloud backlog. This represents the revenue from signed cloud contracts that SAP is virtually certain to recognize over the next twelve months. It rose by 28% to €24.1 billion. In the second quarter, that figure was 27%. Growth is thus accelerating slightly. That is important. It was precisely the fear of slowing cloud growth that sent the stock price tumbling earlier this year.

What is SAP’s outlook?

SAP now expects its 2026 cloud revenue to come in at the upper end of the previously announced range. The targets for an operating profit of €11.8 to €12.2 billion and free cash flow of approximately €10 billion remained unchanged.

CFO Dominik Asam remains cautious, however. He anticipates a slight slowdown in backlog growth for the full year 2026 and points out that the fourth quarter accounts for about half of all annual orders. A disappointing final quarter due to economic or political turmoil therefore remains a risk. The margin on cloud services was also under slight pressure due to investments in AI and higher infrastructure costs. Meanwhile, shareholders are benefiting from the ongoing share buyback program. This supports both the stock price and earnings per share.

What is the analysts’ outlook on SAP’s stock price?

Analysts are predominantly positive about SAP, although expectations vary. Of the 33 analysts, 21 issue a “Strong Buy ” recommendation and 6 a “Buy” recommendation. In addition, 5 analysts recommend holding the stock (Hold), while only one analyst issues a Strong Sell recommendation. This means that over 80% of analysts are positive about the stock.

The average price target is around €220, approximately 7% above the current price. Bernstein is among the most optimistic analysts, with a price target of €273. Bank of America sets its target at €226 and Jefferies at €220, while UBS is more cautious with a price target of €201.

Although the price targets vary considerably, the majority of analysts remain positive about SAP’s growth prospects, particularly due to the increasing demand for cloud software. The differences lie mainly in expectations regarding the pace of growth and the valuation investors are willing to pay for it.

What is Yelza’s outlook on SAP’s stock price?

Below you’ll find SAP’s stock price chart. The arrows show the most likely scenario at a glance.

In our previous article, our model indicated an initial price target of around €195. From its low of €127 in July, the stock price rose by more than 60% in a strong rally. The resistance level around €192 was convincingly broken just before the earnings report, and the first price target has thus been reached. After such a strong rally, a breather is to be expected. Our model anticipates a brief pullback toward €192. If this support level holds, the path is clear to the next price target at €255.

Around €255, our algorithm expects another correction, with a pullback toward approximately €230. This sets the stage for the final leg. During this leg, the price could break through the previous record of €276 from early 2025 and surge toward our unchanged long-term price target of €300.

Conclusion:

SAP is delivering exactly what investors needed. Cloud growth is holding steady, profits are rising faster than revenue, and the full-year outlook is improving. The concerns that dragged the stock price down earlier this year have thus been largely dispelled. The first price target of €195 has been reached. If you’ve built a position around €180, you may want to consider holding it as the price moves toward the next price target of €255. If you don’t yet have a position, you may want to wait for a pullback toward €192 before entering the market. Keep in mind that the fourth quarter will be decisive for the year and that the stock price may remain volatile along the way. The long-term price target remains unchanged at €300.

SAP will report its results for the fourth quarter and the full fiscal year 2026on Thursday ,January 28 ,2027 .

Disclaimer: Investing involves risks. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts’ own insights and experiences. They are therefore intended for educational purposes only.