SAP’s CEO Bets €325,000 on His Own Stock as Cloud Orders Hit a Record
Published on 07/27/2026 at 03:21 | Redaktion boerse-global.de
Christian Klein put his money where his strategy is. On the same day SAP shares jumped 9.15 percent to €140.80 after a quarterly earnings release that split analyst opinion, the chief executive bought €325,218.90 worth of company stock. The purchase, disclosed on Friday, was widely read as a vote of confidence in a turnaround that is generating record cloud orders but struggling to translate them into margin gains.
The numbers that triggered the rally were undeniably strong. SAP’s cloud backlog swelled 27 percent to €22.9 billion, cloud revenue climbed 22 percent — or 24 percent on a currency-adjusted basis — and revenue from the Cloud ERP Suite advanced 25 percent. Total revenue for the second quarter reached €9.878 billion, up from €9.03 billion a year earlier and slightly ahead of the €9.85 billion consensus. Adjusted earnings per share came in at €1.59, while reported EPS of €1.89 beat the €1.76 analyst estimate by a comfortable margin.
Yet beneath the headline beats, a familiar pressure point emerged. The adjusted operating margin disappointed, prompting Klein to trim the full-year outlook for currency-adjusted operating profit to a range of €11.8 billion to €12.2 billion, down from the previous €11.9 billion to €12.3 billion. The culprit, SAP said, is dilution from two acquisitions completed in July: Dremio and the Freiburg-based AI startup Prior Labs. CFO Dominik Asam told analysts on a conference call that both units are expected to post losses in the second half of the year, with the combined dilution estimated at over €100 million.
The margin revision left analysts sharply divided. Jefferies’ Charles Brennan praised the order backlog, saying he had expected SAP to beat market forecasts but not by this magnitude, and argued that even the weak margin was secondary given the momentum in new business. JPMorgan’s Toby Ogg struck a more cautious tone, calling the margin performance a negative surprise and warning that the full-year profit target now depends on a meaningful acceleration in the second half.
Should investors sell immediately? Or is it worth buying SAP?
The range of price targets reflects the disagreement. Deutsche Bank reiterated its “Buy” rating and €200 target, forecasting a growth pickup in 2027. JPMorgan held at “Overweight” with a €175 target. Evercore ISI cut its target from €175 to €160 with an “In-Line” rating. At the bearish end, DZ Bank lowered its fair value from €130 to €120 and kept a “Sell” rating, citing acquisition dilution and persistent margin pressure.
Klein’s stock purchase adds a personal dimension to the narrative. He also took direct responsibility for key areas of technology and product development as of July 1, a move first reported by Handelsblatt. The insider buying signals that management sees the current valuation as an opportunity, even as the shares remain 18.98 percent below their 200-day moving average of €173.78 and down 32.42 percent year to date.
SAP’s acquisition strategy is central to both the margin headache and the long-term growth story. Prior Labs will operate as an independent frontier-AI lab for structured data within the group, complementing new AI-powered features that SAP rolled out in early July for its “RISE with SAP” and “SAP GROW” programs. A separate partnership with Nokia and Microsoft, announced in late June, targets cloud and AI transformation. The company also has a €10 billion share buyback program running through the end of 2027, under which it had repurchased over 16 million shares at an average price of €161.16 by June 30.
SAP at a turning point? This analysis reveals what investors need to know now.
For now, the market is weighing a record cloud backlog against a profit outlook that has been trimmed by acquisition costs. The next major checkpoint is October 22, when SAP reports third-quarter results and investors will see whether the cloud engine can start closing the gap with margin expectations.
Ad
SAP Stock: New Analysis - 27 July
Fresh SAP information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
