SAP Set for 'Controlled Bookings Deceleration' in Q3, BofA Says

MT Newswires · 1d ago
06:53 AM EDT, 09/24/2026 (MT Newswires) -- BofA Global Research maintained its investment opinion on SAP (SAP.F), as analysts project third-quarter current cloud backlog growth to ease amid "controlled bookings deceleration." "Management flagged no specific macro impact on demand as of early September, with demand supported by cloud migration (60% ERP customers still on-prem) and AI. We therefore expect CCB to decelerate modestly, consistently with the guidance of slight deceleration for 2026, from +26% in Q2 to +24.7% in Q3 (broadly aligned with consensus at 24.3%)," according to a Thursday note. Additionally, the research firm forecasts cloud growth to rise 24.4% at constant currency and 23% organically, keeping pace with 23.3% organic growth in the second quarter and aligned with the company's full-year 2026 outlook. Analysts also expect an expanding cloud footprint and rising AI adoption to drive revenue growth above 10% in 2026, with further momentum in 2027. Combined with operating leverage and AI-driven cost savings, an estimated 11% compound annual revenue growth is projected to lift EPS by 18% annually through 2028. Ahead of the company's earnings report on Oct. 21, BofA affirmed its buy rating and price objective of 226 euros on the stock. The research firm added that the stock is its "top large cap software pick" for 2026 and part of its "25 stocks for 2026" and "Europe 1 top ideas" lists.