Update shared on 23 Nov 2025
Fair value Decreased 0.38%Analysts have slightly adjusted SAP's price target downward to $287.58, reflecting marginal changes in financial forecasts. Recent research highlights ongoing resilience in the cloud business and a positive outlook despite conservative guidance.
Analyst Commentary
Analyst opinions on SAP remain generally positive, with several highlighting the company's long-term growth drivers and its ability to navigate changing market conditions. However, some note areas for caution regarding near-term guidance and revenue expectations.
Bullish Takeaways- Several analysts have raised their price targets for SAP, reflecting confidence in the company's fundamental outlook and anticipated revenue acceleration in the coming year.
- Bullish analysts describe SAP's recent share weakness as a buying opportunity, citing the company's resilience and earnings visibility despite macroeconomic headwinds.
- Strategic initiatives in the cloud business and strong conversion potential position SAP for sustained, long-term growth and continued outperformance.
- Encouraging updates on the macro environment and pipeline suggest that SAP is well placed to capture further upside as conditions improve.
- Some analysts have expressed caution regarding SAP's conservative cloud revenue guidance, which remains at the low end of estimates and could limit fiscal year upside.
- There are concerns around a larger than expected decline in the software segment, which may weigh on overall revenue performance in the near term.
- Recent downward adjustments to price targets reflect tempered expectations for short-term execution, particularly in light of guidance for the upcoming quarter.
- While long-term prospects are considered robust, near to medium term uncertainty around macro factors and execution risks remain under close watch.
What's in the News
- SAP faces heightened M&A attention after multiple BlackLine shareholders urge the company to consider a sale, following SAP's previously rebuffed takeover approach. (Bloomberg, Reuters)
- SAP is set to offer concessions in an effort to settle an EU antitrust probe and avoid a significant fine. The European Commission is seeking market feedback. (Reuters)
- SAP emerges as a key customer in a planned EUR1B German data center project by Nvidia and Deutsche Telekom, which is part of Europe's expanding AI infrastructure. (Bloomberg)
- The U.S. Supreme Court declined to hear SAP's appeal in an antitrust case brought by Teradata. This decision allows litigation against SAP to proceed. (Reuters)
- SAP is under a separate EU antitrust probe regarding its software support practices for its Enterprise Resource Planning solutions. (Bloomberg)
Valuation Changes
- Fair Value: Decreased marginally from €288.67 to €287.58, reflecting minor updates to underlying forecasts.
- Discount Rate: Lowered slightly from 6.36% to 6.32%, suggesting a modest reduction in perceived risk.
- Revenue Growth: Shown a negligible decline, with projected annual growth remaining at 12.68%.
- Net Profit Margin: Edged down from 21.38% to 21.37% in the latest projections.
- Future P/E: Declined modestly from 36.03x to 35.82x, indicating slightly lower forward earnings expectations.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.