On July 27, SAP SE rose 6.21% in regular trading, trading at approximately $169.42/share, with turnover of approximately $100 million. The stock continued its post-earnings rebound momentum fueled by strong Q2 cloud business performance.

SAP reported Q2 total revenue of EUR 9.878 billion, up 9% year-over-year and slightly exceeding consensus estimates, driven primarily by cloud revenue growth of 22%. Current cloud backlog reached EUR 22.929 billion, up 27% year-over-year, signaling sustained demand acceleration. IFRS net income rose 26% year-over-year. However, non-IFRS EPS of EUR 1.59 missed the consensus estimate of EUR 1.75, partly reflecting elevated AI-related investment spending.

Supporting the recovery, HSBC raised its target price on SAP, while Berenberg maintained a Buy rating with a $230 target. The analyst consensus target stands at $237.55. With the stock having fallen approximately 35% year-to-date amid multiple target price cuts, pessimistic expectations had been largely priced in prior to earnings, enabling sentiment to recover sharply once the cloud acceleration was confirmed.

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