SAP Enters Quiet Period With Leadership Shake-Up as July 23 Earnings Loom
Published on 07/01/2026 at 22:07 | Redaktion boerse-global.de
The software giant has fallen silent. SAP entered its pre-earnings quiet period on Wednesday, just as chief executive Christian Klein tightened his grip on product development in a move that sent shares sharply higher but left the stock still nursing deep year-to-date losses.
Klein now directly oversees the central business suite, the transaction platform, and the company’s entire artificial intelligence strategy. The restructuring, code-named "Fuji," is designed to slash decision-making timelines and close the gap with US rivals who have moved faster to embed generative AI into enterprise software. The immediate catalyst: product development chief Muhammad Alam is leaving SAP after his contract expires in March 2027.
Markets cheered the decisive step. SAP shares climbed 4.37% to €140.84, extending the weekly gain to 4.42%. The rally came after the stock had touched a new 52-week low of €130.80 on 25 June — a far cry from the €266.00 peak set in July 2025, representing a decline of 47.05% from that high.
Should investors sell immediately? Or is it worth buying SAP?
The dramatic sell-off has made the valuation historically cheap, and analysts are circling. Jefferies has a €210.00 price target, arguing the current pessimism around the software sector is overdone. Berenberg is even more bullish at €215.00, citing the stock's depressed multiple. JP Morgan stays at €175.00 but still sees substantial upside. All three targets imply gains of at least 24% from current levels.
Operationally, the cloud engine is humming. First-quarter cloud revenue rose 27% to nearly €6 billion, and the order backlog is expanding at a similar pace on a currency-adjusted basis. Yet the share price tells a different story. The stock remains 23% below its 200-day moving average of roughly €182 and also trades under the 50-day line at €146.61. The relative strength index reads 48.3 — neutral territory — while annualized volatility of 46.07% reflects the market's skittishness.
SAP has been trying to prop up the stock through a €2.6 billion buyback programme, the second phase of which runs until the end of July. The company is also pressing ahead with its acquisition of data specialist Dremio, expected to close in the third quarter of 2026, to sharpen the technological foundation for future AI applications. In June, SAP launched new AI assistants that dig deeper into customer business processes than earlier tools.
Now all eyes turn to 23 July, when SAP releases its first-half numbers. That report will offer the first hard evidence of whether Klein's radical overhaul — and the Dremio deal — are starting to translate into operating results. Until then, the stock is left to drift on tech-sector sentiment and technical signals alone.
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