SAP shares fell on June 10 after Goldman Sachs trimmed its margin forecasts ahead of the company's second-quarter results, and the stock has declined more than 8.85% since. Goldman lowered its second-half 2026 gross margin estimate from 73.3% to 72.8% and adjusted the full-year EBIT growth forecast to around 15%, citing higher hardware costs in the second half of 2026 as the main pressure point. The firm also noted that pending acquisitions Dremio and Prior Labs are expected to be mildly margin dilutive, though this should be offset by cost efficiencies in other businesses. Goldman left cloud backlog growth assumptions largely unchanged but slightly raised its fiscal 2026 forecast after factoring in the recently closed Reltio acquisition, while flagging that a Middle Eastern customer is expected to scale back, adding near-term pressure on cloud revenue. Despite the caution, Goldman maintains a Buy rating on SAP with a price target of $311.
SAP SEGoldman Sachs trimmed margin and EBIT forecasts, citing higher hardware costs and a Middle Eastern customer scaling back.
Goldman Sachs Group Inc