- Price & Performance: SAP (NYSE: SAP) shares were trading around $262 on Oct. 30, 2025 Stockanalysis. The stock is roughly flat on the year (up ~0.2% YTD) after surging about 75% over the past 12 months Reuters.
- Q3 Earnings: In Q3 2025 SAP delivered 7% revenue growth (€9.08 billion) and 12% operating profit growth, driven by 22% year-over-year growth in cloud sales Sap ts2.tech. Cloud backlog hit a record €18.84 billion (up ~27% in constant currency) Sap. CEO Christian Klein hailed “strong cloud revenue growth” and said SAP is “confident in our accelerating total revenue growth ambition for 2026” ts2.tech.
- Guidance & Outlook: SAP raised its full-year 2025 profit and cash-flow outlook, but cautioned that cloud revenue will land near the low end of its €21.6–€21.9 billion target Reuters Reuters. CFO Dominik Asam emphasized “disciplined execution and a sharp focus on profitability and cash flow” as the company “maintained forward momentum despite an uncertain macro backdrop” Reuters ts2.tech.
- Analyst Views: Wall Street remains mostly bullish. About 15 analysts rate SAP a “buy,” with an average 12-month target around $281 (roughly €265) ts2.tech. Top brokers’ price targets range from ~€270 to €316 ts2.tech. However, most targets imply only modest upside – shares are near multi-year highs and have doubled in a year ts2.tech Reuters.
- Stock Reaction: SAP’s share price swung wildly in late Oct. 2025. After SAP beat earnings estimates on Oct. 22, the stock initially fell ~4% in after-hours trading (as investors digested the cautious cloud outlook) ts2.tech ts2.tech. By Oct. 23, it rebounded ~2% in Frankfurt as analysts noted the results were “better than feared” ts2.tech. Over the week of earnings, SAP closed between about $259–$279, with a sharp drop on Oct. 29 followed by a pickup on Oct. 30 Stockanalysis.
| Date (2025) | Close Price (USD) | Daily Change |
|---|---|---|
| Oct 22 | $276.22 | –1.5% |
| Oct 23 | $278.53 | +0.8% |
| Oct 24 | $269.55 | –3.2% |
| Oct 27 | $272.16 | +0.9% |
| Oct 28 | $270.06 | –0.8% |
| Oct 29 | $259.64 | –3.8% |
| Oct 30 | $262.25 | +1.0% (intraday) |
Source: Stockanalysis.com (SAP/USD data) Stockanalysis.
- Strategic Moves (AI/Cloud): SAP is expanding its cloud and AI offerings. In late Q3, SAP acquired SmartRecruiters (a talent-acquisition software firm) and launched an “OpenAI for Germany” sovereign-cloud service in partnership with OpenAI Sap. It also announced partnerships with ADP (cloud payroll) and Amazon/AWS (sovereign cloud on AWS), and expanded Google Cloud ties. These initiatives aim to drive long-term growth by integrating enterprise software with AI and cloud platforms Sap ts2.tech.
- Analyst Commentary: Many analysts highlighted SAP’s strong backlog and disciplined execution. Goldman Sachs reiterated a Buy rating, noting “durable backlog and cloud revenue growth” and healthy migration of customers to SAP’s new cloud products ts2.tech. JPMorgan pointed out that the 27% cloud backlog jump is especially positive given concerns about AI displacing software demand Reuters. Still, some brokers have trimmed targets (e.g. DB to €270, BofA to €316) in light of a tech sector “derating” and sky-high valuations ts2.tech.
- Market & Economic Context: The SAP news came in a choppy market environment. On Oct. 29 the U.S. Federal Reserve cut rates slightly, but Chairman Powell warned further cuts are uncertain Reuters. U.S. stock indexes were flat-to-down on Oct. 30 as investors digested this outlook. In Europe, Germany’s DAX index was near record highs (~24,700) going into SAP’s report ts2.tech. SAP’s 17%-weight in the DAX means its volatility can sway the whole index – indeed, SAP’s initial miss helped drag the DAX lower, and its rebound later lifted the market ts2.tech. Meanwhile, broader tech jitters (Tesla’s profit miss, Netflix slump, chip weakness) have put pressure on tech-linked stocks, even as SAP tries to capitalize on the AI/cloud boom ts2.tech ts2.tech.
Bottom Line: SAP remains a market heavyweight riding a powerful transition to cloud and AI. Its Q3 results showed solid gains, but management warned of a near-term slowdown in cloud growth. Analysts say the long-term story is positive – backlog is large and costs are in check – but with the stock near cycle highs, “the rally” may need new catalysts to keep climbing. Investors will be watching upcoming earnings and how well SAP turns its AI/cloud investments into sales.
Sources: Official SAP earnings release and outlook Sap Sap; Reuters and TS2.tech news reports Reuters Reuters ts2.tech ts2.tech ts2.tech Stockanalysis; expert analysis and forecasts ts2.tech ts2.tech Reuters. (Table data from Stockanalysis Stockanalysis.)
SAP Stock Drops Despite Strong Cloud Growth | Q3 2025 Earnings Explained
