SAP eyes cloud growth ahead of July earnings, shares hover near range

German software giant SAP scheduled to release its second‑quarter 2026 and first‑half‑year results after the market close on 23 July. Analysts are concentrating on the company's cloud segment, expecting revenue growth of about 22 % year‑on‑year and a cloud backlog increase of roughly 23‑24 %. The firm also plans to continue heavy investment in artificial‑intelligence tools while trimming hiring outside the AI area to protect margins.

The SAP share price has been trading within a broad band of €137‑€160 since March, currently near the lower end at €138‑€139 and below both the 50‑day and 200‑day moving averages. The EU antitrust case against SAP was closed on 13 July without a fine. Analysts maintain buy ratings but have lowered price targets, with UBS cutting its target to €164 from €205 and noting concerns that large customers are hesitant to adopt AI agents. Risks cited include slower AI scaling, rising hardware costs, the impact of the war in Iran and higher energy prices on industrial customers, and potential slowdown in cloud backlog growth.