On July 24, SAP SE rose 5.79% in regular trading, trading at $156.08/share, with turnover of $143 million. The rally was driven by the company's Q2 earnings release, which showed accelerating cloud business momentum despite a miss on adjusted earnings per share.

SAP reported Q2 total revenue of €9.878 billion, up 9% year-over-year and slightly above consensus estimates of €9.861 billion. Cloud revenue grew 22% YoY, with current cloud backlog reaching €22.929 billion, up 27% YoY. IFRS net profit rose 26% to €2.209 billion, and IFRS basic EPS increased 30% to €1.89. However, non-IFRS EPS of €1.59 missed the market consensus of €1.75, while AI-related investment spending weighed on adjusted profitability.

Prior to earnings, multiple investment banks had cut target prices — Barclays to $255, UBS from €205 to €164, and Wells Fargo from €250 to €180 — contributing to a roughly 35% year-to-date decline. Analysts noted that pessimistic expectations had been largely priced in through consecutive selloffs, enabling the strong cloud growth figures to trigger a meaningful recovery in market sentiment.

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