GS EUROPEAN EXPRESS: SAP | Autos | Argenx | Medtech | Macro | Global | Corporate Access

Research evidence excerpt

GS EUROPEAN EXPRESS: SAP | Autos | Argenx | Medtech | Macro | Global | Corporate Access

Equity Research

27 July 2026 | 6:25AM BST

GS EUROPEAN EXPRESS: SAP | Autos | Argenx | Medtech | Macro | Global

| Corporate Access

SAP (SAPG.DE): Resilient CCB and strong pipeline despite macro uncertainty; Sahar Islam

+44(20)7051-4935 |

refining EBIT assumptions; reiterate Buy - We reiterate our Buy on SAP post 2Q26, sahar.islam@gs.com

Goldman Sachs International

which demonstrated another quarter of CCB resilience despite elevated macro

uncertainty driven by Middle East tensions. CCB grew 26% yoy ex-fx, ahead of

GSe/consensus at 25%/24%. We modestly raise cloud revenues to 24.4% yoy ex-fx

(from 24.0%) for FY26, while slightly lowering EBIT growth to 14.5% yoy ex-fx (from

14.8%), reflecting lower cloud gross margins, higher opex, and the dilutive impact of

the Dremio and Prior Labs acquisitions. We believe the growth exhibited in 1H26,

combined with a post-SAPPHIRE pipeline tracking better than expected, gives

greater visibility into 2H cloud growth, which we view as broadly de-risked given the

unchanged guidance. We reduce our PT by ~6.5%. Buy with 67.5% upside.

(Mohammed Moawalla)

Europe Automobiles: Further sector de-rating puts shareholder returns in focus;

BMW/VW/RNO trading at or below net-cash while TSR remains robust - We

assess the EU Autos sector following BMW’s profit warning, which has reignited fears

of another round of sector-wide earnings warnings driven by Chinese competition

and elevated input costs. We think these concerns are well-founded and expect

further profit warnings and negative revisions across 2H26. However, distress is now

priced to extremes: 4 of 6 OEMs trade at or below net industrial cash, with BMW at