SAP’s stock is hovering barely above its 52-week trough, and the company is observing its quiet period ahead of second-quarter earnings on July 23. Inside the Walldorf campus, however, the silence is broken by a sweeping internal overhaul that puts Chief Executive Christian Klein directly in charge of product development — a move that reshapes the German software giant’s top management just as investors question its relevance in the AI era.
Klein has taken command of the “Business Suite” and a central transaction platform, responsibilities that previously belonged to Chief Product Officer Muhammad Alam. Alam will remain until his contract expires in March 2027 but in a sharply reduced role overseeing only “Product Experience.” SAP has no plans to fill the CPO post. The reorganization, internally code-named “Fuji,” means operational managers now report directly to the CEO. The shake-up follows last year’s departure of sales chief Scott Russell, a pattern that some market observers see as a risk to continuity at the top.
The Fuji plan also creates two new dedicated units for artificial intelligence. Philipp Herzig will lead the Business AI Platform, which consolidates data, analytics, the Business Technology Platform, and the company’s AI architecture. Manoj Swaminathan takes charge of the Autonomous Suite, combining core applications for finance, supply chains, human resources, and customer relationship management. Additionally, COO Sebastian Steinhäuser picks up responsibility for “Industrial AI.” The goal is to embed artificial intelligence across SAP’s entire portfolio — a strategy the company brands as “All in on AI.”
These structural changes come as the stock endures a prolonged slide. SAP shares traded recently at €135.70, a gain of 0.56% on the day but a decline of roughly 33% since the start of 2026. Over the past 12 months the paper has lost almost 47% of its value. Just last week it touched a new 52-week low of €130.80. The 200-day moving average stands at €182.43, meaning the stock is currently 26% below that level.
Should investors sell immediately? Or is it worth buying SAP?
SAP’s buyback programme, launched in February, has done little to stem the decline. The company is authorised to repurchase up to €10 billion of its own equity through the end of 2027, with a current budget of €2.6 billion. In the first tranche it acquired roughly 16.3 million shares at an average price of €161.16 — well above today’s quotation. Those buybacks have become cheaper, but they have not stabilised the price.
Analysts, however, remain broadly bullish. UBS sets a target of €205, Berenberg €215, Jefferies last cut its target to €210 while maintaining a buy rating, and Bernstein Research sees fair value as high as €276. UBS analyst Michael Briest expects further margin improvement in the second quarter, though less dramatic than in the first. The current share price implies a discount of roughly 35% to the average analyst target.
The underlying business itself is performing solidly. In the first quarter of 2026, total revenue rose about 6% to €9.56 billion, with cloud revenue surging 27%. The operating margin hit 30% for the first time in 13 quarters. For the full year, SAP expects cloud revenue between €25.8 billion and €26.2 billion — currency‑adjusted growth of 23% to 25%. Yet investors remain sceptical, worried that traditional enterprise software may lose relevance as competitors like Oracle throw up to $95 billion at AI infrastructure.
A clearer picture will emerge on July 23, when SAP releases its half‑year numbers after the market closes (22:05 CET, analyst conference at 23:00). The quiet period prohibits any comment on revenue, margins, or the annual forecast until then. Cloud margins and Business AI growth rates are expected to be the focal points. Whether the new leadership structure can accelerate decision‑making — and whether that will convince the market — will be tested when the silence breaks.
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