SAP's Fuji Reorganization Casts Shadow Over Nokia and Government Cloud Wins
Published on 06/30/2026 at 21:31 | Redaktion boerse-global.de
SAP is winning marquee clients in the private and public sectors, yet its share price continues to drift near the worst levels in a year. The contradiction underscores a deeper tension: while the cloud pipeline is swelling, a sweeping internal overhaul — codenamed Project Fuji — is unsettling investors already nursing a 33% year-to-date loss.
The stock slipped 1.2% on the latest major deal announcement, when Nokia signed a multi-year agreement to migrate its entire SAP estate onto the RISE with SAP platform hosted on Microsoft Azure. The Finnish telecoms group, already a longtime user of SAP's systems for finance and logistics, will consolidate workloads covering SAP S/4HANA for Central Finance, Master Data Governance, Extended Warehouse Management and Global Trade Services. Microsoft is acting as a third partner, assisting with migration and ongoing optimisation. SAP is also weaving embedded artificial intelligence features from its cloud ERP portfolio into the project, using the deal to showcase the AI functionality it pitches as a key upgrade incentive for RISE customers.
The Nokia contract builds on solid first-quarter numbers reported earlier in 2026. Revenue rose to €9.56 billion from €9.01 billion a year earlier, while earnings per share climbed from €1.52 to €1.66. Cloud revenue, measured on a currency-adjusted basis, surged 27% — a growth rate SAP will need to defend when it reports second-quarter results on 23 July.
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SAP's push into the public sector is also gaining traction. The IT services firm DATAGROUP has added the "Delos Cloud" to its portfolio, a sovereign cloud solution operated by an SAP subsidiary on Microsoft technology. Designed to meet Germany's strict BSI requirements for government data — the so-called "red lines" on digital sovereignty — the offering includes Azure, Microsoft 365, Teams and SharePoint. Meanwhile, the IT services provider FPT has achieved Silver Partner status in SAP's PartnerEdge programme for Europe, further extending the company's ecosystem.
Yet these wins have done little to arrest the stock's slide. At €134.20, SAP shares are just 2.6% above the 52-week low of €130.80. The 200-day moving average sits at €182.43, meaning the equity is trading roughly 26% below that benchmark. The relative strength index stands at 39.4, indicating technical weakness without yet reaching oversold territory.
The overhang stems largely from Project Fuji, a reorganisation that has concentrated power in the hands of chief executive Christian Klein. Starting 1 July 2026, Klein will directly oversee critical development areas such as the Business Suite and the transaction platform. Product development chief Muhammad Alam is set to leave the company after his contract ends in March 2027. Market observers interpret the power shift as a sign of mounting transformation pressure, with the CEO stepping into the engine room to accelerate a restructuring that is weighing on sentiment.
The Q2 report on 23 July will be the next major test for both operational momentum and investor confidence. The cloud segment's 27% growth rate must prove it can absorb the costs of the overhaul. With the stock hovering just above its yearly trough and technical conditions fragile, the earnings release could determine whether the recent slide stalls or deepens.
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