By Mauro Orru

SAP is scheduled to report results for the fourth quarter on Thursday. Here is what you need to know:

REVENUE FORECAST: The German business-software group should post total revenue of 9.70 billion euros ($11.53 billion), according to a non-IFRS consensus provided by the company. The forecast represents 3% growth on year. Analysts expect cloud revenue to be up 19% to 5.60 billion euros, according to the consensus.

SAP analysts and investors tend to follow non-IFRS numbers, which exclude restructuring expenses as well as acquisition-related charges and aren't based on International Financial Reporting Standards.

OPERATING PROFIT FORECAST: The company behind the Concur travel and expense-management platform is expected to report 12% growth in operating profit to nearly 2.74 billion euros, generating a 28.2% operating margin.

SAP stock is down nearly 5% since the year began and over 20% over the past 12 months. While the group briefly claimed the top spot as Europe's largest listed company by market value last year, its valuation has come under pressure in recent months due to cautious sentiment among investors over artificial-intelligence disruption risks, Citi analysts wrote in a note to clients.

WHAT TO WATCH:

--SAP Chief Executive Christian Klein said in October that the group expected total revenue growth to accelerate in 2026, but the company hasn't issued formal guidance yet. SAP should guide for solid cloud revenue growth, UBS analysts wrote in a research note. They expect the company to project 24% to 26% cloud revenue growth and 14% to 19% growth in non-IFRS operating profit.

--Klein said in an interview in October that spending on cloud and software services from clients in tariff-exposed sectors had picked up following a trade agreement between the U.S. and the European Union that restored some predictability. Investors will be on the lookout for comments on how business momentum is shaping up in the current quarter.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

January 27, 2026 05:53 ET (10:53 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.