SAP

It has been about a month since the last earnings report for Commvault Systems (CVLT). Shares have added about 11.6% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Commvault due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for CommVault Systems, Inc. before we dive into how investors and analysts have reacted as of late. Commvault reported first-quarter fiscal 2027 non-GAAP earnings of $1.42 per share, up 40.6% year over year. The figure beat the Zacks Consensus Estimate of $1.18 by 20.3%. Revenues advanced 11.4% to $314.13 million and surpassed the consensus mark by 0.99%. Results benefited from strong SaaS demand, subscription growth and improving profitability. Subscription annual recurring revenues (ARR) increased 22% to $1.05 billion. Subscription revenues increased 16% year over year to $267.03 million and accounted for 85% of total revenues, up from 81% in the prior-year quarter. Term-based license revenues rose 1% to $110.42 million, while term-based support revenues climbed 18% to $56.06 million. SaaS revenues surged 39% to $100.55 million, crossing the $100 million quarterly threshold for the first time. Perpetual license revenues increased 19% to $8.70 million. However, perpetual support revenues declined 19% to $25.48 million, while other services revenues fell 7% to $12.93 million. Subscription ARR reached $1.05 billion, up from $867.31 million a year earlier. CVLT added $39 million in net new subscription ARR during the quarter, driven by continued strength in its SaaS offerings. SaaS ARR grew 38% to $424.34 million from $306.87 million. The company surpassed 10,000 active SaaS customers, while subscription net dollar retention remained steady at 114%. Identity resilience and data security offerings represented more than one-third of net new subscription ARR. Emerging SaaS offerings, including Clumio S3 Protection, Google Workspace and Azure DevOps, also recorded strong growth. The percentage of Commvault-managed SaaS customers using at least two products increased to 49% from 42% a year earlier. This reflected continued upselling and cross-selling across the Commvault Cloud Platform. Management highlighted identity resilience as an important entry point for broader platform adoption. Demand was supported by customers seeking to protect identity systems, govern data access and recover operations following cyber incidents. Commvault also expanded its relationship with Microsoft. Its cyber-resilience capabilities are expected to become available as a native independent software vendor service on Microsoft Azure, making the platform easier to integrate into Azure-based workflows. Gross margin reached 82.1% in the reported quarter. SaaS gross margin improved 635 basis points year over year to 70.6%, aided by product optimization, acquisition integration and strategic agreements with hyperscaler partners. Operating expenses increased 7% to $185 million but declined as a percentage of revenues to 59% from 61% a year earlier. Headcount remained roughly flat year over year. Non-GAAP EBIT increased to $71.47 million from $58.25 million. The corresponding margin expanded 210 basis points to 22.8%, marking the company’s strongest quarterly EBIT margin performance in more than a decade. Operating cash flow increased to $51.67 million from $31.68 million in the year-ago quarter. Free cash flow rose 71% to $51.10 million, reflecting stronger collections and continued spending discipline. Commvault ended the quarter with cash and cash equivalents of $929.84 million, up from $899.99 million at the end of fiscal 2026. During the quarter, the company repurchased roughly 98,000 shares for $10 million. Management continues to target share repurchases equal to approximately 60% of annual free cash flow while retaining balance sheet flexibility. For the second quarter of fiscal 2027, subscription revenues are projected between $264 million and $268 million. Total revenues are expected to be approximately $310 million, while the non-GAAP EBIT margin is forecast at about 20%. For fiscal 2027, CVLT raised its subscription revenue outlook to $1.119-$1.129 billion from $1.115-$1.125 billion. Subscription ARR guidance was maintained at $1.20-$1.21 billion, with SaaS ARR expected to exceed $500 million. The company continues to expect total revenues of $1.30-$1.31 billion and free cash flow of $250-$260 million. Non-GAAP EBIT margin guidance was increased by 50 basis points to approximately 21%. In the past month, investors have witnessed a upward trend in estimates review. Currently, Commvault has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Commvault has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Commvault is part of the Zacks Computer - Software industry. Over the past month, SAP (SAP), a stock from the same industry, has gained 13.8%. The company reported its results for the quarter ended June 2026 more than a month ago. SAP reported revenues of $11.48 billion in the last reported quarter, representing a year-over-year change of +12.1%. EPS of $1.85 for the same period compares with $1.70 a year ago. For the current quarter, SAP is expected to post earnings of $2.04 per share, indicating a change of +9.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for SAP. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CommVault Systems, Inc. (CVLT) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Salesforce, Inc. CRM is scheduled to release second-quarter fiscal 2027 results on Aug. 26. For the second quarter, the company expects total revenues between $11.27 billion and $11.35 billion (midpoint at $11.31 billion). The Zacks Consensus Estimate for second-quarter revenues is pegged at $11.32 billion, which indicates an increase of 10.6% from the year-ago quarter’s reported figure. CRM anticipates non-GAAP earnings per share in the band of $3.25-$3.27 for the second quarter. The consensus mark for non-GAAP earnings has remained unchanged at $3.27 over the past 60 days, which suggests a 12.4% jump from the year-ago quarter’s level. Image Source: Zacks Investment Research Salesforce’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 17.3%. Salesforce, Inc. price-eps-surprise | Salesforce, Inc. Quote Our proven model does not conclusively predict an earnings beat for Salesforce this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here. Earnings ESP: Salesforce has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Zacks Rank: CRM currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here. Salesforce appears well-positioned to report decent second-quarter results, driven by its strategic focus on digital transformation and cloud solutions. With businesses globally undergoing digital overhauls, Salesforce's commitment to aligning its product offerings with customer needs is likely to have boosted its revenues for the quarter. The growing demand for generative AI-enabled cloud solutions has been a major catalyst for Salesforce. By embedding generative AI tools across its products, the company not only enhances customer engagement but also strengthens its competitive position in the customer relationship management space. This forward-thinking approach might have significantly contributed to its top-line growth during the to-be-reported quarter. Salesforce’s ability to deepen relationships with leading brands across industries and expand its reach in key geographic markets remains a cornerstone of its growth strategy. The company’s increasing footprint in the public sector is likely to have provided a further boost, unlocking new growth opportunities during the second quarter. The acquisitions of Zoomin Software, Informatica, Cimulate and Momentum have been pivotal in enhancing Salesforce's capabilities and diversifying its revenue base. These additions are likely to have driven higher subscription revenues, particularly across its core cloud services. Disciplined spending may have boosted Salesforce’s profitability in the second quarter. The company’s first-quarter fiscal 2027 non-GAAP operating margin expanded 250 basis points to 34.8%, mainly driven by the benefits of operating leverage and effective cost management. The trend is anticipated to have continued in the to-be-reported quarter as CRM emphasizes productivity gains from the internal adoption of AI tooling. Year to date, Salesforce shares have plunged 21%, underperforming the Zacks Internet – Software industry’s decline of 4.1%. Compared to its peers, CRM stock has also underperformed other enterprise software makers, including Microsoft Corporation MSFT, SAP SE SAP and ServiceNow, Inc. NOW. Year to date, shares of Microsoft, SAP and ServiceNow have declined 0.1%, 10% and 16.1%, respectively. Image Source: Zacks Investment Research Now, let’s look at the value Salesforce offers investors at the current levels. CRM stock is trading at a discount with a forward 12-month P/E of 14.05X compared with the industry’s 27.66X. Image Source: Zacks Investment Research CRM stock also trades at a discounted multiple compared with ServiceNow, Microsoft and SAP. At present, ServiceNow, Microsoft and SAP have P/E multiples of 27.60, 24.16 and 23.99, respectively. Salesforce remains the global leader in customer relationship management, a position it has consistently held, according to Gartner. However, the company is no longer just a customer relationship management software provider. Rather, it is evolving into a full-scale enterprise platform. Salesforce is building a broader enterprise ecosystem centered on AI, data and collaboration. Acquisitions like Slack and Informatica highlight this ambition, while smaller AI-focused deals such as Fin and Zoomin Software show management’s urgency in staying ahead of the curve. AI is now central to Salesforce’s growth story. Salesforce has been embedding generative AI across its offerings to help companies automate processes, improve decision-making and strengthen customer relationships. Its latest innovation, Agentforce, is gaining momentum. Combined AI and Data, including Agentforce, Data 360 and Informatica Cloud, annual recurring revenues (ARR) reached $3.4 billion in the first quarter of fiscal 2027, more than tripling from the year-ago period. Agentforce alone generated $1.2 billion in recurring revenues, up 205% year over year. Nearly half of Agentforce and Data 360 bookings came from existing customers, showing Salesforce’s success in cross-selling AI features to its user base. Salesforce’s leadership in customer relationship management and aggressive AI expansion creates a solid foundation for sustained growth. Its ability to deliver earnings growth despite ongoing macroeconomic uncertainties makes the stock worth holding. An impressive earnings surprise history and a lower valuation multiple than the industry also suggest staying invested in CRM stock. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Salesforce, Inc. (CRM) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report ServiceNow, Inc. (NOW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is pivoting from traditional, increasingly expensive advertising channels toward a diversified customer acquisition funnel, including new B2B and white-label pharmacy offerings. Revenue has stabilized sequentially for three consecutive quarters, though year-over-year declines persist due to continued softness in the prescription medication category. The company successfully completed a major technology overhaul, including an enterprise-wide SAP ERP rollout and a new call center platform to improve operational scalability. Customer acquisition efficiency improved significantly, with a 15% reduction in acquisition costs driven by the elimination of unproductive, high-cost media programs. Strategic logistics improvements, including a new freight agreement, have shortened delivery times by up to 2 days for West Coast customers to enhance retention. The business is shifting toward a more predictable revenue model, with recurring sales from auto-ship and memberships now representing 61.5% of total gross sales. Management is aggressively streamlining the cost structure, evidenced by a 14% reduction in G&A and a 30% reduction in advertising spend to establish a path to profitability. The July launch of the Rural King co-branded pharmacy serves as a primary proof point for a broader strategy to convert in-store shoppers into online customers. Management expects to announce additional white-label pharmacy partnerships in the near future to further leverage their existing pharmacy infrastructure and expertise. The pending $37 million sale-leaseback of the Delray Beach headquarters is intended to unlock real estate value and provide financial flexibility for core business investments. The Board is actively searching for a permanent CEO focused on long-term shareholder value and a sustainable path to profitability. Future margin improvements are expected to be supported by modernized technology platforms that replace legacy systems and reduce manual inefficiencies. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The company acknowledged an unsolicited $3 per share cash acquisition proposal from Silver Cape Investments, though no determination has been reached. Net loss narrowed significantly to $6.1 million, primarily due to the absence of a $34.2 million non-cash goodwill impairment charge recorded in the prior year. A new 10-year lease agreement will be established following the sale of the headquarters, ensuring operational continuity while strengthening the balance sheet. Gross profit margins were pressured by lower manufacturer rebates, though partially offset by reduced freight costs per order.

FUJIFILM Holdings Corporation FUJIY reported first-quarter fiscal 2026 earnings of ¥31.26 per share, down 30% year over year. Net income attributable to FUJIFILM Holdings fell 30.4% to ¥37.4 billion. Revenues rose 10.3% to a record first-quarter ¥826.5 billion, aided by Healthcare, Electronics, Imaging and favorable currency effects. Semiconductor Materials revenue jumped 31.3%, reflecting strong AI-related demand. Operating income declined 32% year over year to ¥51.2 billion, while the operating margin contracted to 6.2% from 10%. Higher fixed costs in Bio CDMO, one-time Business Innovation restructuring costs and rising raw material prices outweighed profit growth in Electronics and Imaging. Gross profit increased 3.5% to ¥323.4 billion, but the gross margin fell to 39.1% from 41.7%. Selling, general and administrative expenses climbed 16.9% to ¥229.9 billion, while research and development expenses rose 4.1% to ¥42.3 billion. Healthcare revenues increased 12.4% to ¥256.8 billion, but the segment posted an operating loss of ¥12.7 billion versus income of ¥4.3 billion a year earlier. Medical Systems revenues rose 12.8% to ¥162.4 billion, supported by higher endoscope and medical IT sales. Bio CDMO revenues increased 6.4% to ¥57.7 billion. Expanded large-scale operations were offset by unplanned shutdowns at small- to medium-scale U.S. facilities for regulatory inspections and upfront costs tied to the new U.S. site. LS Solutions revenues advanced 21.4% to ¥36.7 billion. Fujifilm Holdings Corp. price-consensus-eps-surprise-chart | Fujifilm Holdings Corp. Quote Electronics revenues surged 25% to ¥127.7 billion, while operating income rose 38.2% to ¥31.1 billion. The segment's operating margin expanded to 24.4% from 22.1%. Semiconductor Materials revenues reached ¥84.9 billion as sales of CMP slurry, NTI developers, advanced photoresists and liquid polyimides benefited from AI semiconductor demand. AF Materials revenues rose to ¥42.8 billion, helped by higher data-tape sales to major IT companies. Imaging revenues advanced 16.2% to ¥168.8 billion, and operating income increased 3.9% to ¥43.4 billion. Consumer Imaging revenues climbed 25.1% to ¥96.7 billion as instax sales benefited from strong mid-to-high-priced models and expanded film supply. Professional Imaging revenues rose 6% to ¥72.1 billion on digital-camera demand, particularly in Asia. However, revenue declined 4.6% on a constant-currency basis because of a tough comparison with strong new-product sales in the prior-year quarter. Business Innovation revenues edged down 0.1% to ¥273.2 billion, while the segment recorded a ¥1.4 billion operating loss versus ¥15.6 billion of income a year ago. Office Solutions revenues fell 4.6% to ¥114.5 billion amid lower exports to Europe and the United States and weaker sales in China. Business Solutions revenues rose 2.7% to ¥77.8 billion, while Graphic Communications revenues increased 4.1% to ¥81 billion. FUJIFILM also began assessing a partial spin-off of Business Innovation, with execution being considered within the next two to three years. Net cash provided by operating activities was ¥92.3 billion compared with ¥94.8 billion a year earlier. Investing activities used ¥124.9 billion, producing negative free cash flow of ¥32.6 billion. Cash and cash equivalents ended June at ¥150.7 billion, down ¥19.9 billion from March. Total assets increased to ¥6,167.3 billion, while inventories rose ¥66.3 billion to ¥667.1 billion. FUJIFILM raised its fiscal 2026 revenue forecast by ¥90 billion to ¥3,560 billion, representing 6% growth from fiscal 2025. The company maintained its operating income forecast at ¥365 billion and net income outlook at ¥280 billion, implying increases of 4.2% and 1.2%, respectively. Healthcare operating income guidance was cut to ¥41 billion from ¥69 billion because of delayed Bio CDMO profitability. Electronics operating income guidance was raised to ¥120 billion from ¥106 billion, while Business Innovation was lifted to ¥80 billion from ¥65 billion. Imaging remained at ¥162 billion. Currently, FUJIFILM has a Zacks Rank #3 (Hold). In the past year, shares have lost 6.8% against the Zacks Semiconductor Equipment – Photomasks industry’s growth of 57.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Image Source: Zacks Investment Research Fortive Corporation FTV reported second-quarter 2026 adjusted earnings of 74 cents per share, which jumped 28.5% year over year and topped the Zacks Consensus Estimate of 71 cents by 4.2%. Revenues rose 7.9% year over year to $1.10 billion and beat the consensus estimate of $1.06 billion by 3.5%. Core revenues increased 6.7%, reflecting price and volume growth in both operating segments. Flex Ltd. FLEX reported first-quarter fiscal 2027 adjusted earnings of $1.00 per share, up 38.9% year over year. The figure beat the Zacks Consensus Estimate of 93 cents by 7.5%. Revenues advanced 20.6% to $7.93 billion and topped the consensus mark of $7.58 billion by 4.6%. Broad-based segment growth, led by a 35% expansion in Cloud and Power Infrastructure, supported the results. SAP SE SAP reported second-quarter 2026 non-IFRS earnings per share of €1.59 ($1.85), which increased 6% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $2. Despite macroeconomic uncertainty, SAP reported total revenues on a non-IFRS basis of €9.9 billion ($11.5 billion), which increased 9% year over year (up 11% at constant currency or cc). The Zacks Consensus Estimate was pegged at $11.4 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SAP SE (SAP) : Free Stock Analysis Report Fujifilm Holdings Corp. (FUJIY) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report Fortive Corporation (FTV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

PTC Inc. PTC reported third-quarter fiscal 2026 non-GAAP earnings of $1.58 per share, a 4% decline year over year. It missed the Zacks Consensus Estimate of $1.60. Management had estimated non-GAAP EPS in the range of $1.24-$1.78. Revenues totaled $600 million, a 7% decline year over year (8% at constant currency or cc). The top line also missed the consensus estimate by 2.9%. Management projected revenues in the $580-$640 million range. According to management, historical financials were not restated after the Kepware and ThingWorx divestiture, as the sale did not qualify as discontinued operations. Consequently, fiscal 2026 includes their contribution only until March 13, 2026, the date of the divestiture, while fiscal 2025 reflects a full year, affecting year-over-year comparisons for revenue, EPS and cash flow. Quarterly revenue was below the guidance midpoint solely due to the shorter duration of a single large contract expansion, while deal durations across the broader business remained stable. PTC Inc. price-consensus-eps-surprise-chart | PTC Inc. Quote Nonetheless, its Intelligent Product Lifecycle vision integrates AI across its major product portfolio, including Computer-Aided Design (CAD), Product Lifecycle Management (PLM), Application Lifecycle Management (ALM) and Service Lifecycle Management (SLM). PTC aims to build an intelligence layer across these platforms, allowing organizations to leverage trusted engineering and operational data more effectively. This strategy positions the company well as manufacturers increasingly seek AI-driven automation, predictive analytics and digital engineering capabilities. Recurring revenues of $576 million dipped 6% year over year. Perpetual licenses decreased 91% to $691,000. Professional services revenues were $23.3 million, up 3.3% year over year. License revenues were $205.8 million, down 18.2% from the year-ago quarter figure. Support and cloud services revenues of $370.9 million edged up 0.3% year over year. In the fiscal third quarter, PLM revenues (59% of net sales) were $357 million, slipping 12% year over year. CAD revenues (41%) were $243 million, up 1%. Annualized recurring revenues (ARR) were $2.4 billion, up 7% year over year. At cc, ARR was $2.5 billion, up 9.1%. PTC generated $60 million in net new ARR in the fiscal third quarter, led by solid demand across its go-to-market initiatives and encouraging early traction for its AI offerings. Backed by this momentum, PTC raised the midpoint of its full-year ARR growth guidance to 9.25%. PTC raised and narrowed its full-year ARR guidance, with the midpoint implying $214 million in net new ARR, reflecting strong go-to-market execution and improved pipeline visibility. The company expects a significant acceleration in the fiscal fourth quarter, supported by healthy demand generation and the conversion of deferred ARR, with net new ARR (excluding Kepware and ThingWorx) projected at $79-$92 million. In the fiscal third quarter, PLM and CAD ARR were $1,426 million and $986 million, rising 8% and 6% year over year, respectively. Total operating expenses came in at $324 million, almost on par with the prior-year quarter. Operating income on a non-GAAP basis was $248.5 million, down from $285.2 million in the prior-year quarter. Operating margin on a non-GAAP basis crashed 290 bps year over year to 41%. As of June 30, 2026, cash and cash equivalents were $351.5 million compared with $439 million as of March 31, 2026. Total debt, net of deferred issuance costs, was $1.4 billion as of June 30, 2026, compared with $1.2 billion as of March 31, 2026. Cash provided by operating activities was $261 million compared with the prior-year quarter figure of $244 million. The free cash flow was $249 million compared with $242 million reported in the year-ago quarter. PTC accelerated share repurchases in the fiscal third quarter, reflecting management's view that the stock was undervalued. After completing a $375 million accelerated share repurchase program and an additional $525 million of open-market buybacks, the company now expects to repurchase about $1.625 billion of shares in fiscal 2026. This is expected to reduce fully diluted shares outstanding from roughly 121 million to 116 million, supporting EPS growth and signaling confidence in PTC's long-term outlook. For the fourth quarter of fiscal 2026, PTC estimates revenues in the $630-$690 million band. Non-GAAP EPS is projected in the range of $1.63 to $2.21. Cash from operations is expected to be around $29 million. Free cash flow is forecasted to be roughly $15 million, with the year-over-year decline primarily reflecting capital gains tax outflows from the Kepware and ThingWorx sale. Driven by an encouraging fiscal fourth quarter outlook, PTC lifted the midpoint of its fiscal 2026 revenue and non-GAAP EPS guidance to $2.69-$2.75 billion and $7.87-$8.42, respectively. The prior view was $2.58 billion to $2.82 billion and between $6.65 and $8.90 per share. For fiscal 2026, PTC reiterated cash from operations projections to be around $880 million, indicating a rise of about 1% on a year-over-year basis. The free cash flow is still forecasted to be roughly $850 million, suggesting about a 1% fall. Currently, PTC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Cadence Design Systems CDNS delivered strong second-quarter 2026 results, driven by broad-based demand for its AI-oriented portfolio amid robust design activity and new system architectures across hyperscaler infrastructure and physical AI. Non-GAAP earnings per share (EPS) of $2.11 beat the Zacks Consensus Estimate by 2.9%, increased 27.9% year over year and topped management’s guided range of $2.02 to $2.08. Revenues of $1.584 billion beat the Zacks Consensus Estimate by 0.5% and increased 24.2% year over year. The figure was within the management’s guided range of $1.555-$1.595 billion. Progress Software Corporation PRGS reported second-quarter fiscal 2026 results wherein revenues came in at $253 million, up 7% year over year and 6% on a constant currency (cc) basis. ARR of $868 million inched up 2% year over year on a cc basis. PRGS reported a 16% year-over-year increase in non-GAAP earnings per share, which stood at $1.62. SAP SE SAP reported second-quarter 2026 non-IFRS earnings per share (EPS) of €1.59 ($1.85), which increased 6% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $2. Despite macroeconomic uncertainty, SAP reported total revenues on a non-IFRS basis of €9.9 billion ($11.5 billion), which increased 9% year over year (up 11% at constant currency or cc). The Zacks Consensus Estimate was pegged at $11.4 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PTC Inc. (PTC) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report Progress Software Corporation (PRGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Sonos, Inc. SONO reported third-quarter fiscal 2026 non-GAAP earnings of 27 cents per share, which soared 52% year over year and topped the Zacks Consensus Estimate of 24 cents. The 12.5% surprise reflected higher sales and disciplined spending despite rising memory costs. Revenues increased 9% to $375 million, beating the $367 million consensus by 2.3%. Speaker demand and international expansion supported growth. Sonos’ installed base exceeded 53 million connected devices across more than 17 million homes. Revenues from Sonos speakers rose 12.5% year over year to $285.3 million and remained the company’s largest product category. The quarter included the first full period of availability for Sonos Play and Era 100 SL, both of which contributed meaningfully to revenue growth. Sonos system products generated $69.3 million, down 5.4%. Partner products and other revenues increased 15.4% to $20.7 million. Amp Multi is scheduled to ship on Aug. 25, extending the company’s offering for professional installers and larger multi-zone projects. Image Source: Zacks Investment Research Americas revenues advanced 3.8% to $238.4 million. Europe, the Middle East and Africa revenues climbed 17.4% to $114.2 million, while Asia-Pacific sales increased 27.2% to $22.7 million. Foreign exchange added about one percentage point to reported growth. On a constant-currency basis, total revenues rose 7%, accelerating three percentage points from the second quarter. Non-GAAP gross profit increased 10.8% to $170.8 million. Non-GAAP gross margin expanded 80 basis points (bps) to 45.5%, even as higher memory costs created a $14 million year-over-year burden and reduced the margin by roughly 380 bps. GAAP gross margin was 50.4%, including a $23.2 million benefit from refunds of previously paid tariffs. Excluding that non-recurring benefit, GAAP gross margin was 44.3%, up 90 bps year over year. GAAP operating expenses increased 3.4% to $157.8 million, mainly due to employee compensation, litigation spending and restructuring charges. Non-GAAP operating expenses rose 2.7% to $134.6 million and remained below the levels recorded in the first two quarters of fiscal 2026. Adjusted EBITDA grew 23.5% to $44 million, with the margin improving to 11.7% from 10.3%. Non-GAAP operating income reached $36.2 million, up 57.3%, as gross-profit growth outpaced the increase in adjusted expenses. Cash provided by operating activities increased 23.5% to $46.2 million. Free cash flow rose 23.3% to $40.3 million, while cash and marketable securities totaled $261 million at quarter-end. Sonos repurchased 2 million shares for $30 million, leaving $35 million under its authorization. Inventories were $158 million, up 37% year over year due to higher memory costs, new product launches and capitalized tariffs. Sonos, Inc. price-consensus-eps-surprise-chart | Sonos, Inc. Quote For the fourth quarter of fiscal 2026, SONO expects revenues of $325 million to $355 million, representing 13% to 23% growth. The 14-week quarter includes an extra week expected to add about $24 million in sales and eight percentage points to growth. Excluding that benefit, growth is projected at 4% to 15%. GAAP gross margin is forecast between 39% and 41%, with non-GAAP gross margin about 120 bps higher. Management expects memory inflation to reduce gross profit by $35 million year over year. Adjusted EBITDA is projected between a loss of $11 million and a profit of $18 million. For fiscal 2026, Sonos expects revenue growth of 6% to 8%, or 4% to 6% excluding the extra week. Adjusted EBITDA is projected at $181 million, up 37%, with an 11.7% margin. Management expects memory-mitigation actions to phase in through fiscal 2027. Sonos currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. SAP SE SAP reported second-quarter 2026 non-IFRS earnings per share of €1.59 ($1.85), which increased 6% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $2. Despite macroeconomic uncertainty, SAP reported total revenues on a non-IFRS basis of €9.9 billion ($11.5 billion), which increased 9% year over year (up 11% at constant currency or cc). The Zacks Consensus Estimate was pegged at $11.4 billion. America Movil, S.A.B. de C.V. AMX reported net income per ADR of 47 cents for the second quarter of 2026, up from 38 cents in the prior-year quarter. The earnings figure missed the Zacks Consensus Estimate of 52 cents. Total quarterly revenues rose 3.1% to Mex$241,071 million, driven by rapid momentum across the Service and Equipment segments. BlackBerry Limited BB reported first-quarter fiscal 2027 non-GAAP earnings per share of 4 cents. The figure beat the company’s estimate of 2-3 cents. In the year-ago quarter, it reported a non-GAAP EPS of 2 cents. The Zacks Consensus Estimate was pegged at 3 cents per share. BlackBerry generated $152.9 million in fiscal first-quarter revenue, representing 26% year-over-year growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report America Movil, S.A.B. de C.V. Unsponsored ADR (AMX) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report Sonos, Inc. (SONO) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Flex Ltd. FLEX reported first-quarter fiscal 2027 adjusted earnings of $1.00 per share, up 38.9% year over year. The figure beat the Zacks Consensus Estimate of 93 cents by 7.5%. Revenues advanced 20.6% to $7.93 billion and topped the consensus mark of $7.58 billion by 4.6%. Broad-based segment growth, led by a 35% expansion in Cloud and Power Infrastructure, supported the results. However, shares of the company declined around 5% in the pre-market trading session today. In the past year, the stock has surged 121.8% compared with the Zacks Electronics - Miscellaneous Products industry’s growth of 58.4%. Image Source: Zacks Investment Research Regulated Manufacturing Solutions revenues rose 12% year over year to $2.67 billion. Industrial demand benefited from energy infrastructure and warehouse automation, while connected medical devices supported Healthcare. Integrated Technology Solutions revenues increased 20% to $3.06 billion, aided by stronger advanced networking demand. Cloud and Power Infrastructure generated $2.20 billion, supported by robust demand across Power and Cloud & Cooling. Cloud and Power Infrastructure adjusted operating income rose 38% to $214 million, with margin increasing 20 basis points to 9.7%. Regulated Manufacturing Solutions income climbed 40% to $176 million, while Integrated Technology Solutions income advanced 21% to $158 million. Adjusted gross profit increased 28% to $761 million. Adjusted gross margin expanded 50 basis points to 9.6%, reflecting the benefit of the company’s mix and operating execution. Adjusted operating income climbed 35% to $534 million, while adjusted operating margin improved 70 basis points to 6.7%. GAAP selling, general and administrative expenses rose to $334 million from $233 million. Legal and other charges totaled $67 million, including $53 million primarily tied to the planned spin-off and $14 million of acquisition costs. Flex Ltd. price-consensus-eps-surprise-chart | Flex Ltd. Quote Cash provided by operating activities was $276 million, down from $399 million a year earlier. Changes in working capital and other items used $149 million against a $65 million contribution in the prior-year quarter. Net capital expenditures were $235 million, leaving free cash flow of $41 million. Free cash flow included a $24 million negative impact from separation costs related to the Cloud and Power Infrastructure spin-off. Cash and cash equivalents increased to $2.84 billion as of June 26, 2026, from $2.39 billion at fiscal 2026-end. Long-term debt rose to $5.22 billion from $3.75 billion over the same period. The quarter included $1.13 billion of cash used for business acquisitions and $90 million of proceeds from divestitures. Flex raised $2.83 billion through bank borrowings and long-term debt and repaid $1.39 billion of borrowings and other financing liabilities. For the second quarter of fiscal 2027, FLEX expects revenues of $7.95-$8.25 billion. Adjusted operating income is projected between $535 million and $565 million, with adjusted earnings of $1.00-$1.07 per share. Management expects Regulated Manufacturing Solutions revenues to rise in the mid-single to high-single digits. Integrated Technology Solutions is projected to grow in the high-single to low-double digits, while Cloud and Power Infrastructure is expected to increase 45-55%. Flex raised its fiscal 2027 revenue guidance to $33.7-$35.2 billion from $32.3-$33.8 billion. The adjusted operating margin outlook was tweaked to 7.0-7.2% from 7.0-7.1%. Adjusted earnings guidance was raised to $4.42-$4.74 per share from $4.21-$4.51. The company now expects Cloud and Power Infrastructure revenues to grow 65-75%, while free cash flow conversion is projected at roughly 40%, down from about 60% due to one-time separation costs. Flex currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. SAP SE SAP reported second-quarter 2026 non-IFRS earnings per share of €1.59 ($1.85), which increased 6% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $2. Despite macroeconomic uncertainty, SAP reported total revenues on a non-IFRS basis of €9.9 billion ($11.5 billion), which increased 9% year over year (up 11% at constant currency or cc). The Zacks Consensus Estimate was pegged at $11.4 billion. America Movil, S.A.B. de C.V. AMX reported net income per ADR of 47 cents for the second quarter of 2026, up from 38 cents in the prior-year quarter. The earnings figure missed the Zacks Consensus Estimate of 52 cents. Total quarterly revenues rose 3.1% to Mex$241,071 million, driven by rapid momentum across the Service and Equipment segments. BlackBerry Limited BB reported first-quarter fiscal 2027 non-GAAP earnings per share of 4 cents. The figure beat the company’s estimate of 2-3 cents. In the year-ago quarter, it reported a non-GAAP EPS of 2 cents. The Zacks Consensus Estimate was pegged at 3 cents per share. BlackBerry generated $152.9 million in fiscal first-quarter revenue, representing 26% year-over-year growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report America Movil, S.A.B. de C.V. Unsponsored ADR (AMX) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Fortive Corporation FTV reported second-quarter 2026 adjusted earnings of 74 cents per share, which jumped 28.5% year over year and topped the Zacks Consensus Estimate of 71 cents by 4.2%. Revenues rose 7.9% year over year to $1.10 billion and beat the consensus estimate of $1.06 billion by 3.5%. Core revenues increased 6.7%, reflecting price and volume growth in both operating segments. However, Fortive’s shares are slightly down around 1.5% in the pre-market trading session today. The stock has gained 21.6% in the past six months compared with the Zacks Electronics - Testing Equipment industry's growth of 16%. Image Source: Zacks Investment Research Currency translation and portfolio changes added 1.2 percentage points to reported revenue growth. The remaining increase came from core operations, showing that the quarter's expansion was primarily organic. Management linked the performance to strong execution under the Fortive Accelerated strategy. The company cited early progress in innovation, commercial execution and recurring customer value, supported by the Fortive Business System. These initiatives are intended to increase new-product velocity and deepen recurring customer relationships. Intelligent Operating Solutions generated revenues of $758.2 million, up 8.8% year over year. Core revenues increased 7.4%, driven by professional instrumentation, Facilities and Asset Lifecycle solutions, and gas detection. Adjusted EBITDA for the segment rose 12.2% to $264.4 million. The adjusted EBITDA margin expanded 110 basis points (bps) to 34.9%, as gross profit growth, operating leverage and structural cost savings more than offset growth investments. Advanced Healthcare Solutions posted revenues of $338.6 million, up 6% from the prior-year quarter. Core growth was 5.3%, supported by demand for healthcare consumables, services and software, along with modest growth in capital equipment. Segment adjusted EBITDA increased 2.7% to $88.4 million. However, the adjusted EBITDA margin contracted 80 bps to 26.1%, as product mix and strategic growth investments weighed on profitability despite operating leverage and cost savings. Adjusted gross profit increased 6.2% to $690.9 million. The adjusted gross margin was 63%, down 100 bps year over year, mainly due to product mix, partly offset by operating leverage. Adjusted EBITDA rose to $323.1 million from $288.4 million, and the margin expanded 110 bps to 29.5%. Adjusted operating profit increased to $300.7 million, with the adjusted operating margin improving 70 bps to 27.4%. GAAP net earnings advanced 40.9% to $157.3 million. Fortive Corporation price-consensus-eps-surprise-chart | Fortive Corporation Quote Operating cash flow from continuing operations reached $298.7 million, up from $205 million a year earlier. Free cash flow increased 50.3% to $270.6 million, representing conversion of 118.4% of adjusted net earnings. Trailing-12-month free cash flow totaled $1.04 billion, with conversion of 108.4%. Fortive ended the quarter with $374.2 million in cash and equivalents, while net debt was $3.15 billion and net leverage was 2.4 times adjusted EBITDA. The cash profile supports continued deployment across the company's stated priorities. Fortive raised its full-year 2026 adjusted earnings guidance to $2.95-$3.05 per share. The revision reflects solid first-half execution and management's confidence in the business trajectory. The company maintained that its medium-term financial framework remains intact. It continues to focus on faster profitable organic growth, disciplined capital allocation and building investor trust through clearer expectations and consistent delivery. The company deployed roughly $200 million toward share repurchases in the second quarter, buying about 3 million shares at an average price of $59.54. Repurchases over the past four quarters totaled approximately $2 billion, covering about 38 million shares, or roughly 11% of shares outstanding as of the second quarter of 2025. Fortive also completed the acquisition of UV Smart, a small bolt-on transaction aligned with its strategic growth priorities. Gross leverage declined to about 2.7 times adjusted EBITDA, preserving flexibility for organic investment, selective acquisitions, repurchases and a modestly growing dividend. Fortive currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. SAP SE SAP reported second-quarter 2026 non-IFRS earnings per share of €1.59 ($1.85), which increased 6% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $2. Despite macroeconomic uncertainty, SAP reported total revenues on a non-IFRS basis of €9.9 billion ($11.5 billion), which increased 9% year over year (up 11% at constant currency or cc). The Zacks Consensus Estimate was pegged at $11.4 billion. America Movil, S.A.B. de C.V. AMX reported net income per ADR of 47 cents for the second quarter of 2026, up from 38 cents in the prior-year quarter. The earnings figure missed the Zacks Consensus Estimate of 52 cents. Total quarterly revenues rose 3.1% to Mex$241,071 million, driven by rapid momentum across the Service and Equipment segments. BlackBerry Limited BB reported first-quarter fiscal 2027 non-GAAP earnings per share of 4 cents. The figure beat the company’s estimate of 2-3 cents. In the year-ago quarter, it reported a non-GAAP EPS of 2 cents. The Zacks Consensus Estimate was pegged at 3 cents per share. BlackBerry generated $152.9 million in fiscal first-quarter revenue, representing 26% year-over-year growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report America Movil, S.A.B. de C.V. Unsponsored ADR (AMX) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report Fortive Corporation (FTV) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Cadence Design Systems CDNS delivered a strong second-quarter 2026 results, driven by broad-based demand for its AI-oriented portfolio amid robust design activity and new system architectures across hyperscaler infrastructure and physical AI. Non-GAAP earnings per share (EPS) of $2.11 beat the Zacks Consensus Estimate by 2.9%, increased 27.9% year over year and topped management’s guided range of $2.02 to $2.08. Revenues of $1.584 billion beat the Zacks Consensus Estimate by 0.5% and increased 24.2% year over year. The figure was within the management’s guided range of $1.555-$1.595 billion. All the product groups witnessed double-digit growth. On the earnings call, the company cited agentic AI as a durable tailwind. Cadence expects agentic tools to drive higher EDA consumption and usage across its platform as customers run more simulations, verification and implementation cycles, thereby expanding the addressable market. Management highlighted “strong early traction” for its AI Super-Agent portfolio.A standout metric was a record backlog of $8.1 billion, driven by strong bookings. Image Source: Zacks Investment Research Strong quarterly performance and accelerating AI demand led to a raise in its 2026 revenue outlook.Cadence raised its full-year 2026 revenue outlook to a band of $6.26-$6.34 billion, compared with the earlier guided range of $6.125-$6.225 billion. The Zacks Consensus Estimate is currently $6.2 billion.Non-GAAP EPS for 2026 is now expected to be between $8.05 and $8.15, compared with the earlier guided range of $7.85 to $7.95. The Zacks Consensus Estimate is currently pinned at $7.94 per share. CDNS stock was up 2.9% in the post-market trading yesterday and is up 3.4% in the pre-market trading today. The stock has lost 7.5% compared with the Computer - Software industry’s 30.6% decline in the past year. Product & Maintenance revenues (90.3% of total revenues) of $1.431 billion rose 22.3% year over year. Services revenues (9.7%) of $154 million jumped 46.7% year over year. Recurring revenues comprised 78% of total revenues, while the remainder was upfront revenues. The Americas contributed 43% of revenues, while China accounted for 15%, Other Asia 20%, Europe, Middle East and Africa 15% and Japan 7%, pointing to diversified demand across geographies.Product-wise, Core EDA, Intellectual Property (“IP”) and Systems Design & Analysis accounted for 68%, 15% and 17% of total revenues, respectively.The System Design & Analysis business, up 37% in the second quarter, is gaining from higher demand for Allegro X AI, 3D-IC and BETA CAE solutions. Management noted that the integration of Hexagon's D&E business was “progressing well” with some deals closed with key clients in the quarter. Cadence Design Systems, Inc. price-consensus-eps-surprise-chart | Cadence Design Systems, Inc. Quote Core EDA business, which includes Custom IC, Digital IC and Functional Verification, experienced 18% year-over-year growth. The demand for new hardware systems continued to gain traction, driven by AI/HPC customers. Apart from hardware, demand for digital full-flow solutions was steady, with expanded adoption of the Tempus and Certus sign-off tools. It added 12 new logos in the reported quarter as well as expanded business with several AI clients. The IP business was up 40% year over year in the second quarter. The company is witnessing higher demand for its Star IP portfolio across AI and HPC applications, including HBM, PCIe, UCIe and LPDDR6. Non-GAAP gross margin expanded 100 basis points (bps) to 88.2%. Total non-GAAP costs and expenses increased 18.4% year over year to $863 million.However, non-GAAP operating margin expanded 270 bps on a year-over-year basis to 45.5%. As of June 30, 2026, CDNS had cash and cash equivalents of $1.44 billion compared with $1.407 billion as of March 31, 2026. Long-term debt was $2.482 billion, compared with $2.481 billion as of March 31, 2026. Cadence generated an operating cash flow of $635 million in the reported quarter compared with the prior quarter’s $356 million. Free cash flow was $582 million compared with $307 million in the previous quarter.The company repurchased its shares worth $200 million in the second quarter. Non-GAAP operating margin for 2026 is now forecasted to be in the band of 43.75% to 44.75%, compared with the range of 43.5% to 44.5% guided earlier. Also, operating cash flow is expected to be $2 billion compared with $1.875 billion to $1.975 billion projected earlier. CDNS expects to utilize at least 50% of its free cash flow to repurchase shares in 2026.For the third quarter of 2026, revenues are estimated to be $1.595-$1.625 billion. The company reported sales of $1.55 billion in the year-ago quarter. Non-GAAP EPS is anticipated to be between $2.01 and $2.07. CDNS reported an EPS of $1.92 in the year-ago quarter. Non-GAAP operating margin is estimated to be between 43.5% and 44.5% in the third quarter. Cadence currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. SAP SE SAP reported second-quarter 2026 non-IFRS EPS of €1.59 ($1.85), which increased 6% from the year-ago quarter. The Zacks Consensus Estimate was $2. Despite macroeconomic uncertainty, SAP reported total revenues on a non-IFRS basis of €9.9 billion ($11.5 billion), which increased 9% year over year (up 11% at constant currency or cc). The Zacks Consensus Estimate was pinned at $11.4 billion.Shares of SAP have declined 40.5% in the past year. Pegasystems PEGA reported second-quarter fiscal 2026 revenues of $420.7 million, up 9.4% year over year, but missed the consensus mark by 1.8%. Pega Cloud momentum was a bright spot, with Pega Cloud annual contract value rising 22% year over year. Pega Cloud revenues jumped 28% year over year to $213.9 million and accounted for 51% of quarterly revenues.Shares of PEGA have declined 52.7% in the past year.Progress Software Corporation PRGS reported second-quarter fiscal 2026 results wherein revenues came in at $253 million, up 7% year over year and 6% on a constant currency (cc) basis. ARR of $868 million inched up 2% year over year on a cc basis. PRGS reported a 16% year-over-year increase in non-GAAP earnings per share, which stood at $1.62. Shares of PRGS have lost 21.9% in the past year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Cadence Design Systems, Inc. (CDNS) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report Progress Software Corporation (PRGS) : Free Stock Analysis Report Pegasystems Inc. (PEGA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SAP SE SAP reported second-quarter 2026 non-IFRS earnings per share (EPS) of €1.59 ($1.85), which increased 6% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $2. Despite macroeconomic uncertainty, SAP reported total revenues on a non-IFRS basis of €9.9 billion ($11.5 billion), which increased 9% year over year (up 11% at constant currency or cc). The Zacks Consensus Estimate was pegged at $11.4 billion. AI strategy is becoming a major competitive advantage for SAP. Management emphasized its Autonomous Enterprise strategy, which combines Business AI with enterprise applications. SAP is embedding AI directly into finance, procurement, supply chain, HR and customer operations. The company's strategy revolves around two major pillars –Autonomous Suite and Business AI Platform. SAP believes customers increasingly value AI solutions that operate using trusted enterprise data while maintaining governance and compliance. This positioning gives SAP a competitive edge because its AI capabilities are built on decades of customer business processes and transactional data rather than disconnected AI models. As AI adoption expands across enterprises, SAP is well-positioned to monetize AI through higher cloud subscriptions rather than relying solely on standalone AI products. Current cloud backlog reached €22.9 billion in the quarter, representing 27% year-over-year growth (26% at cc). This metric is important because it reflects contracted future cloud revenue, giving investors visibility into future growth. On a non-IFRS basis, the Cloud and software segment (89.6% of total revenues) registered revenues of €8.9 billion, rising 11% year over year (up 13% at cc). Cloud revenue increased 22% year over year (24% at cc) to €6.3 billion, on a non-IFRS basis, demonstrating that enterprise customers continue to migrate mission-critical workloads to SAP's cloud ecosystem. SAP's Cloud ERP Suite, where revenue increased 25% (27% at cc) to €5.5 billion, is equally encouraging. Software licenses and support revenues totaled €2.6 billion, representing a 9% decrease (down 8% at cc) year over year. Services business (10.4% of total revenues) posted revenues of €1 billion, down 3% year over year (down 2% at cc). In the second quarter, organizations worldwide continued to adopt the “RISE with SAP” program to support their comprehensive business transformations. Notable adopters included ACCIONA, AIRBUS, City of Osnabrück, Electrolux, Eli Lilly, Gilead Sciences, HARTING, Hindustan Zinc, The Humboldt University of Berlin, JET, Ørsted, Samsonite Group, Shell, The Shoprite Group, SIGNAL IDUNA, SPAR (CH), Sun Pharma and Vonovia. “GROW with SAP” was implemented by Gooroo Crédito, Modular Data Centers, Parloa, Tarrant County, and Techem. Major global brands across various industries, including AMADEUS, BBC, Booking.com, GOL, Oki Electric Industry, PwC, University Hospital Zurich and Vale, chose SAP's AI and data solutions. SAP SE price-consensus-eps-surprise-chart | SAP SE Quote SAP secured significant customer wins across its solution portfolio, with new or expanded engagements from leading organizations such as Birlasoft, Capgemini, Haier Group and KaDeWe. Döhler, FANUC Europe, Fonterra, Natura Cosméticos, SABESP and TEAG went live on SAP solutions during the quarter. SAP’s cloud revenue growth was especially strong in the APJ and EMEA regions and robust in the Americas, with standout performances from Brazil, France, Germany, Italy, India, South Korea and Spain. It remained strong in the United States, Australia and Singapore. Non-IFRS gross profit of €7.3 billion increased 9% from the year-ago quarter (up 11% at cc). Non-IFRS cloud gross profit increased 22% year over year to €4.7 billion (up 23% at cc). Non-IFRS cloud gross margin fell 0.6 percentage points to 74.6%. SAP's non-IFRS operating profit rose 7% (up 9% at cc) to €2.7 billion, while margin decreased to 27.8%. As of June 30, 2026, SAP had cash and cash equivalents of €11.6 billion compared with €10.1 billion as of March 31, 2026. In the second quarter, the company generated operating cash of €3.2 billion, up 22% year over year. Free cash flow, a key metric of operational strength, rose 27% to €3 billion during the quarter. SAP also continues returning capital to shareholders. Its newly authorized €10 billion share repurchase program remains active. As of June 30, the company had repurchased more than 16.28 million shares and spent approximately €2.6 billion. The company lowered its non-IFRS operating profit outlook from €11.9–€12.3 billion to €11.8–€12.2 billion. The revision stems almost entirely from the acquisitions of Dremio and Prior Labs, which closed in July. Management expects these acquisitions to create a dilutive impact exceeding €100 million during 2026. Despite lowering operating profit guidance slightly, SAP maintained nearly all of its major financial targets. Management still expects cloud revenue between €25.8 billion and €26.2 billion, cloud and software revenue between €36.3 billion and €36.8 billion and approximately €10 billion in free cash flow. Additionally, SAP expects cloud backlog growth to remain strong, though slightly slower, total revenue growth to match 2025 levels, revenue acceleration in 2027 and operating expense growth to remain below revenue growth. Nonetheless, the company acknowledged that its outlook assumes a near-term de-escalation of geopolitical tensions in the Middle East. Any prolonged conflict could negatively impact enterprise spending or business operations. SAP currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. America Movil, S.A.B. de C.V. AMX reported net income per ADR of 47 cents for the second quarter of 2026, up from 38 cents in the prior-year quarter. The earnings figure missed the Zacks Consensus Estimate of 52 cents. Total quarterly revenues rose 3.1% to Mex$241,071 million, driven by rapid momentum across the Service and Equipment segments. BlackBerry Limited BB reported first-quarter fiscal 2027 non-GAAP earnings per share (EPS) of 4 cents. The figure beat the company’s estimate of 2-3 cents. In the year-ago quarter, it reported a non-GAAP EPS of 2 cents. The Zacks Consensus Estimate was pegged at 3 cents per share. BlackBerry generated $152.9 million in fiscal first-quarter revenue, representing 26% year-over-year growth. Iridium Communications IRDM reported EPS of 9 cents for the second quarter of 2026, missing the Zacks Consensus Estimate of 26 cents. The bottom line also compared unfavorably with the prior-year quarter's figure of 20 cents. Iridium reported second-quarter revenue of $225.2 million, representing 4% year-over-year growth. The consensus mark was pinned at $221.2 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SAP SE (SAP) : Free Stock Analysis Report America Movil, S.A.B. de C.V. Unsponsored ADR (AMX) : Free Stock Analysis Report Iridium Communications Inc (IRDM) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in SAP SE? Here are five stocks we like better. SAP posted a strong Q2 2026, with current cloud backlog up 26% to nearly EUR 23 billion and cloud revenue rising 24% to EUR 6.3 billion. Total revenue increased 11%, while non-IFRS operating profit rose 9% year over year at constant currencies. AI is becoming central to SAP’s growth strategy, with management saying AI and SAP Business Data Cloud appeared in more than 90% of its 50 largest deals. SAP also outlined plans for dozens of assistants and more than 400 autonomous suite agents by year-end, alongside integrations with multiple major AI model providers. The company slightly trimmed its operating profit outlook to reflect the dilutive impact of recent acquisitions, though it kept top-line and free cash flow guidance intact. Management also noted macro uncertainty in some regions, but said it did not see broad-based deal delays in the quarter. SAP Bets $1B on AI Acquisitions to Lock In Enterprise Data SAP (NYSE:SAP) reported a strong second quarter for 2026, with management highlighting accelerating current cloud backlog growth, continued cloud revenue gains and rising customer interest in the company’s artificial intelligence offerings. Chief Executive Officer Christian Klein called the quarter “outstanding,” pointing to SAP’s Sapphire customer conference, where the company launched its “autonomous enterprise” strategy. Klein said the event produced record attendance, added to SAP’s sales pipeline and generated positive feedback from customers on the company’s AI roadmap. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? Giants Costco, Sanofi, and SAP Raise Dividends by Over 10% Current cloud backlog rose 26% at constant currencies to nearly EUR 23 billion, an acceleration from the first quarter. Klein said AI and SAP Business Data Cloud were included as key elements in more than 90% of SAP’s 50 largest deals during the quarter, which he said gave the company confidence heading into the second half of the year. Cloud revenue increased 24% to EUR 6.3 billion, supported by continued migrations from on-premise ERP systems to cloud ERP. Total revenue rose 11% to EUR 9.9 billion. SAP reported non-IFRS operating profit of EUR 2.7 billion, up 9% year over year at constant currencies. → 3 Photonics Companies Making Quantum Tech Possible 3 Undervalued European Tech Stocks to Buy After the Ceasefire Chief Financial Officer Dominik Asam said SAP’s cloud ERP suite revenue increased 27% in the quarter and now represents 88% of total cloud revenue. Software license revenue declined 32%, reflecting the company’s continued shift away from traditional on-premise licensing. Asam said cloud revenue performance was particularly strong in Asia-Pacific and Japan and in Europe, the Middle East and Africa, while the Americas delivered solid results. He cited Brazil, France, Germany, Italy, India, South Korea and Spain as having outstanding performance, with Australia, Singapore and the U.S. described as particularly strong. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off Management said SAP’s indirect channel continued to grow faster than direct cloud revenue, reflecting changes in its go-to-market strategy over the past two years. Klein used much of the call to outline SAP’s AI strategy, which centers on the company’s Business AI Platform, Joule Studio, SAP Business Data Cloud and a new user experience called Joule Work. He said the platform is designed to help customers build, govern and operate AI agents across business processes while maintaining data privacy, compliance and sovereignty requirements. Klein said SAP is integrating multiple large language models into Joule Studio, including models from Anthropic, Cohere, Google, Mistral AI and OpenAI, as well as open-weight models. He said SAP’s approach is intended to avoid customer lock-in to a single AI model and allow customers to select models based on cost and performance. The company also discussed several recent acquisitions intended to strengthen its AI and data architecture. Klein said Dremio’s Apache Iceberg-native technology will help SAP bring SAP and non-SAP data together in an enterprise lakehouse, while Reltio will support master data governance. Prior Labs, he said, will help SAP agents generate tabular predictions using SAP and non-SAP data. Klein said SAP plans to release close to 50 assistants by the end of the third quarter and more than 400 autonomous suite agents by the end of the year. The company also plans to launch three additional ERP migration assistants with 10 underlying agents later this quarter. SAP executives cited several customer examples to illustrate early AI adoption. Klein said SAP and Amadeus developed an AI agent that autonomously reconciles unstructured payment data and has already cleared about 40,000 incorrect transactions. He also said Northcote moved from a legacy BW system to SAP Business Data Cloud, cutting BI solution build time by about 75% and report creation time by 50%. In another example, Klein said Lemvigh-Müller, working with NTT Data, deployed custom AI agents to verify purchase orders, achieving more than 90% touchless processing and 98% matching accuracy. Klein said customers including Shell, Morgan Stanley, Samsonite Group, Vonovia, Eli Lilly, Shoprite Group and Electrolux signed RISE with SAP deals in the quarter. He also cited momentum for GROW with SAP among companies including Aloha, Gooroo Crédito, Modular Data Centers and Tecumseh Energy Services. SAP maintained its outlook for top-line metrics and free cash flow, but Asam said the company is lowering its operating profit outlook by EUR 0.1 billion to reflect the dilutive impact of the Dremio and Prior Labs acquisitions. He said SAP still expects to offset the effect of the Reltio acquisition on non-IFRS operating income. Asam said Reltio contributed less than one percentage point to constant-currency current cloud backlog growth in the quarter. He said Dremio and Prior Labs will have a negligible impact on revenue and current cloud backlog, but will weigh on second-half 2026 operating profit by a “very low triple-digit million euro amount.” Free cash flow in the quarter was EUR 3 billion. IFRS operating profit rose 8% to EUR 2.6 billion, while IFRS earnings per share increased 30% to EUR 1.89. Non-IFRS earnings per share increased 6% to EUR 1.59. During the question-and-answer portion of the call, analysts pressed management on slower operating profit growth in the quarter and the cost of AI investments. Asam said the second quarter should not be viewed in isolation, noting that first-half operating leverage remained within SAP’s framework. He cited higher research and development investments, marketing spending tied to the autonomous enterprise launch, stock-based compensation effects and acquisition dilution as factors in the quarter. Klein said SAP is seeing productivity gains from AI, including average productivity improvements of up to 30% in development. He said the company is adjusting hiring plans as AI usage increases and is working to shift development priorities from traditional SaaS feature requests toward agentic AI development. Management also addressed macroeconomic uncertainty, particularly the ongoing conflict in the Middle East. Asam said the situation continues to weigh on customer sentiment and decision-making, especially in affected industries and supply chains. However, Klein said SAP did not see broad-based deal delays in the second quarter, though some Middle East deals were delayed. Asam said SAP still expects a slight deceleration in current cloud backlog growth over the course of the year, while noting that the second half typically accounts for the largest share of annual bookings. He said the company’s priorities for the remainder of the year are to sustain cloud momentum, deliver on operating leverage commitments and close the year strongly. SAP SE is a global enterprise software company headquartered in Walldorf, Germany. Founded in 1972 by five former IBM engineers, the company's name is an acronym for Systeme, Anwendungen und Produkte in der Datenverarbeitung (Systems, Applications & Products in Data Processing). SAP develops and sells software and services that help organizations manage business processes across finance, human resources, procurement, manufacturing, supply chain and customer relationships. SAP's product portfolio spans on‑premises and cloud offerings, anchored by its enterprise resource planning (ERP) solutions such as SAP S/4HANA and the SAP HANA in‑memory database and platform. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "SAP Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.