SAPâs âProject Fujiâ Overhaul and Cost Crackdown Fail to Halt Stock Slide Ahead of Q2 Report
Published on 07/08/2026 at 17:19 | Redaktion boerse-global.de
SAPâs aggressive push to become an âAI-driven autonomous enterpriseâ has translated into deep cost-cutting, a leadership reshuffle, and a fresh acquisition â but the market has yet to reward the effort. The German software giantâs shares slipped 3.73% on Wednesday to âŹ137.84, leaving the stock down 31.76% since the start of the year and within striking distance of its 52-week low of âŹ130.80 set in late June. With the second-quarter earnings report due after the close on July 23, investors are hoping for concrete evidence that the transformation is beginning to pay off.
The belt-tightening is wide-ranging. Since the beginning of July, SAP has imposed a near-total hiring freeze outside of artificial intelligence roles, slashed travel budgets to only essential customer meetings and AI-related trips, and reactivated an oversight body called the âSpend Councilâ that vets all procurement and external service spending. Chief Financial Officer Dominik Asam has internally justified the measures by pointing to the soaring operating costs of AI models, particularly the token consumption in large language models.
Alongside the spending clampdown, SAP is reorganizing its leadership under the internal code name âProject Fuji.â Chief Executive Christian Klein has taken direct control of AI product development. Board member Muhammad Alam, whose contract was set to expire in March 2027, has opted not to renew for personal reasons, though he will stay on through his tenure to advise the board and Klein on AI strategy. Chief Operating Officer Sebastian SteinhĂ€user is assuming responsibility for the Industrial AI unit. The company is now searching externally for a new product development chief, with the US market seen as the most likely hunting ground.
Should investors sell immediately? Or is it worth buying SAP?
The restructuring is meant to accelerate SAPâs pivot toward AI-native products. On July 6, the company wrapped up the acquisition of Dremio, a specialist in data-lakehouse platforms, earlier than many analysts had expected. The deal is designed to help customers combine data from disparate sources in real time for AI workloads, a capability that is central to SAPâs pitch for agentic AI.
The stockâs technical picture underscores the unease. At current levels, SAP is trading well below its 50-day moving average of âŹ145.98 and a long way from the 200-day average of âŹ179.65. The 30-day annualized volatility stands at 47.16%, and the relative strength index sits at a neutral 45.0, offering no clear signal of a near-term rebound. The shares are now more than 48% below the 52-week high of âŹ266.00 reached just over a year ago.
The July 23 earnings report is shaping up as a critical test. Analysts are pencilling in second-quarter revenue of âŹ9.85 billion, representing year-on-year growth of about 9%, and earnings per share of âŹ1.76, up from âŹ1.46 in the same quarter last year. The market will focus on the cloud order backlog, which on a currency-adjusted basis had been growing at 25%. If SAP can confirm that pace â and begin to quantify the early synergies from its Dremio and Reltio acquisitions â it could provide the catalyst the stock needs to break out of its current trading range. The quiet period is now in effect, meaning no official commentary from management until the numbers are released.
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