SAP charts turn bullish ahead of earnings
SAP•SAP shares have risen around 60% from their summer lows and moved above their 20-day and 200-day moving averages ahead of third-quarter results. Jefferies expects cloud backlog growth of about 25% and a return to margin growth.
1. Shares recover
SAP shares are up around 60% from their summer lows and recently broke above €200 for the first time since before the selloff. They are now trading above their 20-day and 200-day moving averages.
2. Earnings expectations
SAP reports third-quarter results after the U.S. market closes. Jefferies expects cloud backlog growth of about 25%, slightly ahead of consensus, and a return to margin growth after higher AI-related spending squeezed profitability in the second quarter. Analysts including Charles Brennan wrote that they expect the “SaaSpocalypse” narrative to fade as SAP proves out its agent capabilities.
