Skip to Content


Rating as of

Morningstar’s Analysis

Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price


5-Star Price


Economic Moat




SAP to Spin Off Qualtrics and Reiterates Q2 Results In Line With Positive Preview

Julie Bhusal Sharma Equity Analyst

Analyst Note

| Julie Bhusal Sharma |

SAP reported second-quarter results that were in line with the positive preannouncement from July 8, showing relative resiliency amid the pandemic—largely due to strength in its cloud business. While second-quarter results were not a surprise given the earlier announcement, SAP revealed that it will spin off Qualtrics, the experience management software division that the company acquired less than two years ago for $8 billion. We are holding off on incorporating the spin-off in our explicit forecasts, as SAP has yet to reveal a float rate for the IPO and disclose when this will occur. However, with SAP to remain the majority shareholder in the new listing and expectations for more growth opportunities as a result, we’d expect only marginal impact to SAP’s long-term trajectory. With the outlook for 2020 upheld, we are maintaining our fair value estimate for narrow-moat SAP of EUR 106 per share and raising our estimate for U.S. shares to $124 from $119 due to exchange rates.

Read Full Analysis

Company Profile

Business Description

SAP is a global software vendor providing solutions for enterprise resource planning, database management, business intelligence, and vertical-specific software. Its flagship software products run on SAP’s HANA database technology. In fiscal 2019, the company generated roughly 44% of revenue from Europe, the Middle East, and Africa, 41% from the Americas, and 15% from Asia.

Dietmar-Hopp-Allee 16
Walldorf, 69190, Germany
T +49 6227747474
Sector Technology
Industry Software - Application
Most Recent Earnings Jun 30, 2020
Fiscal Year End Dec 31, 2020
Stock Type
Employees 101,379