SAP Stock Hovers Near Low as Klein Takes Direct Control of AI Ahead of July 23 Earnings
Published on 07/01/2026 at 14:38 | Redaktion boerse-global.de
SAP’s shares are clinging to support just above the 52-week trough, making the upcoming second-quarter numbers on July 23 a potential inflection point. The software giant’s cloud business is firing on all cylinders — first-quarter revenue hit €9.56 billion, up 6%, and cloud sales surged 27% — yet the stock has shed roughly a third of its value since the start of the year. Investors have been rotating into chip makers, leaving traditional enterprise software names like SAP, Salesforce and ServiceNow under relentless pressure.
Chief Executive Christian Klein is responding by tightening his grip on product development. In a shake-up announced this week, Klein will oversee artificial intelligence directly rather than appointing a dedicated Chief AI Officer. Two newly created units now report straight to him: the “Business AI Platform & CTO” group, led by Philipp Herzig, and the “Autonomous Suite” unit under Manoj Swaminathan. The “Industrial AI” segment has been handed to Chief Operating Officer Sebastian Steinhäuser. The restructuring cost several top managers their posts: Michael Ameling, formerly Chief Product Officer for the Business Technology Platform, is leaving, while board member Muhammad Alam loses operational control — his contract, which runs until spring 2027, will not be renewed. Alam stays on the board, but product development now rests with Klein and Swaminathan.
This is the second major reorganisation in 2026. In March, SAP launched the “Customer Value Group” to shorten decision-making in an increasingly competitive software landscape. The company has not relaxed its spending discipline despite heavy AI investment; an analysis by the “Warren Wise” AI system placed SAP among the five most capital-disciplined names in the DAX and MDAX.
Should investors sell immediately? Or is it worth buying SAP?
The market gave the management overhaul a lukewarm reception. Shares inched up 0.74% on Wednesday to €135.94, but that comes off a low base. The stock is trading barely above its 52-week floor of €130.80 and remains a full 26% below its 200-day moving average of €182.43, underscoring the entrenched downtrend. If current support fails, further selling could follow.
SAP has been buying back its own shares since February, a €10 billion programme running through to the end of 2027. The current tranche has a budget of up to €2.6 billion. The first leg saw the company repurchase roughly 16.3 million shares at an average price of €161.16 — well above the current level, meaning the buyback is now even cheaper. So far, that has done little to stabilise the stock.
Analysts remain largely bullish, setting price targets far above today’s quote. UBS sees the stock reaching €205, Berenberg €215, and Jefferies recently trimmed its target to €210 while keeping a buy rating. Bernstein Research is the most optimistic, with a €276 target. UBS analyst Michael Briest expects further margin improvement in the second quarter, albeit at a slower clip than in Q1, when the operating margin hit 30% for the first time in 13 quarters.
The company is now in a quiet period, barring any comments on sales, margins or guidance until the half-year results are published on July 23 at 22:05 CET, followed by an analyst conference at 23:00. For the full year, SAP forecasts cloud revenue between €25.8 billion and €26.2 billion, representing currency-adjusted growth of 23% to 25%. Whether the cloud engine can sustain its momentum and whether margins hold firm will decide the stock’s next leg — but until then, Walldorf stays silent.
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