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SAP Stock Skyrockets on Cloud Boom – Analysts Eye New Highs?
30 October 2025
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2 mins read

SAP Stock Soars on Cloud Surge — Can the Rally Continue?

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  • Price & Performance: SAP (NYSE: SAP) shares were trading around $262 on Oct. 30, 2025 [1]. The stock is roughly flat on the year (up ~0.2% YTD) after surging about 75% over the past 12 months [2].
  • 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 [3] [4]. Cloud backlog hit a record €18.84 billion (up ~27% in constant currency) [5]. CEO Christian Klein hailed “strong cloud revenue growth” and said SAP is “confident in our accelerating total revenue growth ambition for 2026” [6].
  • 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 [7] [8]. 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” [9] [10].
  • Analyst Views: Wall Street remains mostly bullish. About 15 analysts rate SAP a “buy,” with an average 12-month target around $281 (roughly €265) [11]. Top brokers’ price targets range from ~€270 to €316 [12]. However, most targets imply only modest upside – shares are near multi-year highs and have doubled in a year [13] [14].
  • 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) [15] [16]. By Oct. 23, it rebounded ~2% in Frankfurt as analysts noted the results were “better than feared” [17]. 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 [18].
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) [19].

  • 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 [20]. 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 [21] [22].
  • 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 [23]. JPMorgan pointed out that the 27% cloud backlog jump is especially positive given concerns about AI displacing software demand [24]. 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 [25].
  • 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 [26]. 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 [27]. 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 [28]. 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 [29] [30].

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 [31] [32]; Reuters and TS2.tech news reports [33] [34] [35] [36] [37] [38]; expert analysis and forecasts [39] [40] [41]. (Table data from Stockanalysis [42].)

SAP Stock Drops Despite Strong Cloud Growth | Q3 2025 Earnings Explained
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References

1. stockanalysis.com, 2. www.reuters.com, 3. www.sap.com, 4. ts2.tech, 5. www.sap.com, 6. ts2.tech, 7. www.reuters.com, 8. www.reuters.com, 9. www.reuters.com, 10. ts2.tech, 11. ts2.tech, 12. ts2.tech, 13. ts2.tech, 14. www.reuters.com, 15. ts2.tech, 16. ts2.tech, 17. ts2.tech, 18. stockanalysis.com, 19. stockanalysis.com, 20. www.sap.com, 21. www.sap.com, 22. ts2.tech, 23. ts2.tech, 24. www.reuters.com, 25. ts2.tech, 26. www.reuters.com, 27. ts2.tech, 28. ts2.tech, 29. ts2.tech, 30. ts2.tech, 31. www.sap.com, 32. www.sap.com, 33. www.reuters.com, 34. www.reuters.com, 35. ts2.tech, 36. ts2.tech, 37. ts2.tech, 38. stockanalysis.com, 39. ts2.tech, 40. ts2.tech, 41. www.reuters.com, 42. stockanalysis.com

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Marcin Frąckiewicz Latest posts

CEO of TS2 Space and founder of TS2.tech. Expert in satellites, telecommunications, and emerging technologies, covering trends in space, AI, and connectivity.

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