SAP to report Q2''25 results Tuesday 22-Jul after US market close SAP shares are +8% ytd, outperforming the European peer group but underperforming broader European equity market and Global Software peers (IGV) both +11%. Investors cite a lack of near-term catalysts, FX and FCF headwinds to drive negative Consensus revisions and preference to play AI in Software via AI infrastructure / consumption vendors like Oracle, Microsoft and Snowflake. As a result the set up into Q2 is ok in our view. We expect in-line Revenues but see scope for a 5% beat on earnings that could help reverse the mid-single digit % Consensus cuts since Q1. We expect in-line Revenue / Backlog, but see upside to EBIT / EPS once again In primary focus will be Current Cloud Backlog (CCB) growth, where the first deceleration to 28% ccy is expected (updated analysis within). Cloud Revenue is expected to return to 26-28% growth range guided (FY) as Q4 deals ramp and catch up. Our new analysis on SAP''s opex points to ~5% upside to Q2 Cons adj. EBIT in our estimates, following the 8-9% beats delivered in Q4/Q1. We also refresh our FCF analysis which 1) drives 7% cut to our 2026 FCF to EUR9.8bn and 2) indicates Consensus has yet to fully digest the cash tax / transformation incentive vouchers / FX headwinds to 2026 FCF, though we sense investors have already adjusted their expectations here. Efficiency-led earnings revisions are ok while we wait for Data Cloud and AI growth upside We update estimates keeping growth assumptions unchanged, though FX drives low-single digit % downgrades to our PnL estimates, while the cash headwinds above drive a 7% cut to 2026 FCF. We see SAP driven by marginal EPS upgrades from continued improved efficiency until the market rolls forward to 2027 where we think a fresh cycle of growth upgrades can begin as Business Data Cloud (Databricks partnership) and GenAI (Joule) start to contribute and rekindle the market''s excitement for the story. Our EUR320 TP unch....