SAP shares drop 30% from peak amid AI fears but Q2 cloud growth beats expectations

SAP SE's stock has fallen about 30% from its 2025 peak due to concerns over AI disruption and slower cloud backlog growth. However, Q2 results showed better-than-expected performance with a 26% increase in cloud backlog and 24% growth in cloud revenue. The company's AI strategy appears serious, but execution risks remain given its large size and lack of AI integration in current build-out. The stock trades at a high valuation reflecting anticipated turnaround, with investors awaiting Q3 earnings on October 21 for updates on cloud backlog and AI monetization progress.

SAP SE trades at USD 220.74 on Pluang as of Oct 13, 2026 22:41 WIB, showing a 1.33% gain in the last day. The stock's market cap stands at $247.55 billion with a dividend yield of 1.34%. Despite recent gains, 70% of Pluang orders are sell orders, indicating cautious investor sentiment ahead of Q3 earnings on October 21.