SAP (NYSE:SAP) Shares Gap Up Following Analyst Upgrade

SAP SE (NYSE:SAP) gapped up before the market opened on Friday after BMO Capital Markets raised their price target on the stock from $175.00 to $177.00. The stock had previously closed at $146.38, but opened at $153.75. BMO Capital Markets currently has an outperform rating on the stock. SAP shares last traded at $156.8110, with a volume of 1,382,862 shares trading hands.

A number of other equities research analysts also recently issued reports on the stock. Weiss Ratings downgraded shares of SAP from a “hold (c)” rating to a “hold (c-)” rating in a report on Thursday, July 16th. Piper Sandler downgraded shares of SAP from an “overweight” rating to a “neutral” rating in a research note on Tuesday, April 14th. Santander upgraded shares of SAP from a “neutral” rating to an “outperform” rating in a report on Friday, April 24th. TD Cowen dropped their price objective on SAP from $230.00 to $210.00 and set a “buy” rating for the company in a report on Friday, July 17th. Finally, HSBC raised SAP from a “hold” rating to a “buy” rating in a research report on Wednesday, April 22nd. One investment analyst has rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and eight have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $267.00.

Trending Headlines about SAP

Here are the key news stories impacting SAP this week:

• Positive Sentiment: SAP delivered solid Q2 results, with total revenue up about 9% year over year, cloud revenue up more than 20%, and current cloud backlog rising sharply, reinforcing confidence in the company’s long-term growth engine. SAP Quarterly Statement Q2 2026
• Positive Sentiment: Management said SAP’s AI strategy and cloud momentum are supporting demand, with analysts and media reports noting that strong backlog growth helped offset concerns that AI could disrupt enterprise software. SAP Q2 Earnings Up Y/Y on Cloud Demand, Buyouts Impact Profit Outlook
• Positive Sentiment: BMO Capital Markets raised its price target on SAP and kept an outperform rating, suggesting Wall Street still sees upside after the earnings release. Benzinga / The Fly report
• Neutral Sentiment: Several reports highlighted SAP’s message that AI must move beyond basic chatbots and into more complex enterprise workflows before it creates meaningful returns, underscoring both opportunity and execution risk. Reuters SAP CFO AI comments
• Negative Sentiment: SAP lowered its 2026 operating profit outlook because AI acquisitions and related spending are weighing on earnings, which may cap near-term margin expansion even as revenue trends improve. SAP Cuts 2026 Operating Profit Outlook
• Negative Sentiment: Investors are also weighing the earnings miss versus expectations, as SAP’s quarterly EPS came in below consensus despite the strong cloud performance. SAP quarterly earnings report

Institutional Investors Weigh In On SAP

Several institutional investors have recently bought and sold shares of SAP. Sound Income Strategies LLC raised its stake in shares of SAP by 109.4% in the 4th quarter. Sound Income Strategies LLC now owns 111 shares of the software maker’s stock valued at $26,000 after acquiring an additional 58 shares during the period. Bayban purchased a new stake in SAP during the 4th quarter worth $28,000. Front Row Advisors LLC boosted its position in SAP by 362.5% during the 1st quarter. Front Row Advisors LLC now owns 185 shares of the software maker’s stock worth $32,000 after purchasing an additional 145 shares during the period. Annis Gardner Whiting Capital Advisors LLC increased its holdings in SAP by 758.8% in the 4th quarter. Annis Gardner Whiting Capital Advisors LLC now owns 146 shares of the software maker’s stock valued at $35,000 after purchasing an additional 129 shares in the last quarter. Finally, American National Bank & Trust raised its position in SAP by 641.7% in the fourth quarter. American National Bank & Trust now owns 178 shares of the software maker’s stock valued at $43,000 after purchasing an additional 154 shares during the period.

SAP Stock Performance

The stock has a 50 day simple moving average of $165.59 and a 200 day simple moving average of $184.44. The company has a market cap of $196.52 billion, a price-to-earnings ratio of 20.10, a PEG ratio of 1.84 and a beta of 1.14. The company has a quick ratio of 1.07, a current ratio of 1.07 and a debt-to-equity ratio of 0.11.

SAP (NYSE:SAP) last issued its earnings results on Friday, February 27th. The software maker reported $1.99 earnings per share for the quarter. The company had revenue of $11.06 billion during the quarter. SAP had a return on equity of 17.16% and a net margin of 20.88%. As a group, analysts predict that SAP SE will post 8.26 EPS for the current year.

SAP Company Profile

SAP SE is a global enterprise software company headquartered in Walldorf, Germany. Founded in 1972 by five former IBM engineers, the company’s name is an acronym for Systeme, Anwendungen und Produkte in der Datenverarbeitung (Systems, Applications & Products in Data Processing). SAP develops and sells software and services that help organizations manage business processes across finance, human resources, procurement, manufacturing, supply chain and customer relationships.

SAP’s product portfolio spans on‑premises and cloud offerings, anchored by its enterprise resource planning (ERP) solutions such as SAP S/4HANA and the SAP HANA in‑memory database and platform.