BofA Expects SAP's Q3 Current Cloud Backlog to 'Decelerate Modestly'

01:40 AM EDT, 10/12/2026 (MT Newswires) -- BofA Global Research forecasts SAP's (SAP.F) current cloud backlog growth to "decelerate modestly" in the third quarter. In a third-quarter preview note focused on the European software, IT services and payments industries, the research firm expects the German software company to report current cloud backlog growth of 24.7%, down from 26% in the second quarter and "broadly aligned" with the expected 24.3%. Analysts said the trend aligns with management's full-year 2026 guidance of a slight deceleration in constant currencies current cloud backlog growth, against 25% in 2025. BofA also highlighted management commentary of "no specific macro impact" on demand as of early September, with SAP noting that artificial intelligence adoption and cloud migration continue to drive demand. "Key focus areas: (1) demand environment with concerns on enterprise software demand, potential sensitivity of transactional segments; (2) competitive dynamics in core ERP (enterprise resource planning) and additional segments; (3) progress on cost reduction; and (4) AI roadmap, client offering and monetization in 2026 and 2027," analysts added. Ahead of SAP's third-quarter results due on Oct. 21, BofA rates the stock at buy, with an unchanged price objective of 226 euros.