Morgan Stanley Names Top EU Tech Stocks for 2026

Morgan Stanley's 2026 Growth Picks

Morgan Stanley has identified European software giant SAP and payments platform Adyen as its top stock picks for accelerated growth in 2026. The analysis highlights their strong market positions and resilient business models in an increasingly competitive landscape.

European Tech Market Outlook

For SAP, the top software pick, analysts project an acceleration in organic growth to 12% in 2026, driven by the shift to S/4HANA and mid-20s percentage growth in cloud revenue. The firm also anticipates approximately 15% operating profit growth.

Adyen, the top payments pick, is expected to see net revenue growth accelerate to 22% in 2026. Despite some headwinds in 2025, its record new merchant business and a vast addressable market support a positive outlook.

Economic and Market Impact

The endorsement from Morgan Stanley suggests strong investor confidence in these industry leaders. SAP's potential for high-teens EPS growth and Adyen's strategy for market share gains position them as key stocks to watch. Their performance may influence broader sentiment in the European technology sector.

Conclusion

Both SAP and Adyen are positioned for substantial expansion, according to Morgan Stanley's analysis. Key factors to monitor include SAP's cloud migration progress and Adyen's ability to capitalize on new merchant acquisitions and the large payments market.

FAQ

Q: Which companies did Morgan Stanley highlight for 2026?
A: Morgan Stanley named SAP as its top pick in software and Adyen as its top pick in payments.

Q: What is Adyen's projected revenue growth for 2026?
A: Adyen is projected to accelerate its net revenue growth to 22% in 2026.

Source: Investing.com