SAP shares surge as investors cheer strong quarterly results

Published: 2026-04-24 05:07:21 ET SAP.DE

Published on 04/24/2026 at 05:07 am EDT

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(Update: Xetra trading price action, additional commentary)

FRANKFURT (dpa-AFX) - Europe's largest software manufacturer, SAP, reignited investor appetite on Friday with surprisingly robust quarterly figures. Shares of the DAX's weakest performer so far this year rallied by more than 7 percent during morning trading. They were last seen trading up 5.8 percent at 148.80 euros. Despite this bounce, the Walldorf-based company's stock remains down approximately 28 percent for 2026.

Overall, group revenue grew by 6 percent year-on-year to nearly 9.6 billion euros. The primary driver was cloud software revenue, which climbed 19 percent. Operating profit, adjusted for special items, rose by 17 percent. On the bottom line, the company reported a profit of 1.9 billion euros, an 8 percent increase. These key metrics exceeded average analyst expectations.

CEO Christian Klein highlighted the momentum surrounding Artificial Intelligence (AI) among corporate clients as a key success driver. 'We are growing significantly faster than the market, continuing to expand our market share, and seeing customers increasingly adopt further solutions from our suite as well as our AI offerings.' However, management noted in the quarterly report that the positive trend from the start of the year might not necessarily persist at the same pace, forecasting a likely slowdown in cloud revenue growth for the second quarter.

In their initial reactions, most experts pointed to the current cloud backlog (CCB) - revenue expected from cloud contracts over the next twelve months - as the standout positive surprise. Coupled with the detailed commentary on AI, this should soothe investor concerns, suggested Sven Merkt of the British investment bank Barclays.

Johannes Schaller of Deutsche Bank Research described it as a 'relief quarter,' noting that the start of the year was better than feared. All eyes are now on the 'Sapphire' user conference in mid-May.

Analysts such as Toby Ogg from JPMorgan and Charles Brennan from Jefferies also weighed the positive surprise against recent comments made by CEO Christian Klein to the 'Financial Times.' Given that annual targets remain largely unchanged, many investors might wonder if it was necessary to compare the AI situation with the cloud transition and prepare shareholders for short-term headwinds in favor of long-term success, Brennan commented. Ultimately, however, the quarterly report should help the stock regain lost ground, the Jefferies expert believed./edh/ag/stk