On Monday, SAP SE (NYSE:SAP) and S3NS announced an expansion of sovereign cloud services in France, with Thales as the first customer.
S3NS is a cloud services provider jointly established by Thales and Alphabet Inc.’s Google Cloud (NASDAQ:GOOGL).
SAP will deploy its RISE private cloud edition on S3NS’ SecNumCloud-certified platform, PREMI3NS, by the second half of 2026. The setup keeps data under French jurisdiction while enabling AI-driven enterprise applications for regulated sectors.
Thales will migrate its ERP systems to the platform, aiming to streamline operations and strengthen compliance. The partnership also expands SAP’s sovereign cloud ecosystem and is expected to accelerate secure cloud adoption across Europe.
Earnings Snapshot
Last week, SAP reported quarterly earnings of $2.01 per share, which beat the consensus estimate of $1.92. Revenue came in at $11.19 billion, which just missed the Street estimate of $11.26 billion.
The company’s current cloud backlog rose by 25% to 21.9 billion euros, indicating strong future revenue visibility.
SAP highlighted internal AI-driven productivity gains, including over 30% improvement in developer productivity, 12% higher support productivity, and 83,000 hours saved, generating an additional 50 million euros in pipeline value.
The company sets a target to achieve 2 billion euros in efficiency run rate by the end of 2028 through AI-driven improvements.
Technical Analysis
SAP is still trading in the lower part of its 52-week range, closer to the $160.66 low than the $313.28 high, which keeps the longer-term trend pressure front and center.
The stock is trading 1.1% above its 20-day simple moving average (SMA), suggesting near-term stabilization, but it is trading 17.2% below its 100-day SMA, which points to a still-challenged intermediate trend.
The moving average convergence divergence (MACD), a trend/momentum measure, is currently above its signal line and the histogram is positive, which leans toward improving upside momentum versus the prior downswing.
That said, the broader moving-average structure remains heavy, with the 20-day SMA below the 50-day SMA and the death cross that occurred in September 2025 still consistent with a longer-term bearish backdrop.
Over the past 12 months, the stock is down 38.58%, which matches what the longer-dated moving averages are signaling about sustained selling pressure.
With a recent swing low in April and a swing high in February, traders are watching whether the rebound attempt can keep building without rolling back toward that spring low.
- Key Resistance: $178.00 — a level where rallies have recently stalled.
- Key Support: $164.00 — an area where buyers have tended to show up.
Analyst Consensus & Recent Actions: The stock carries a Strong_buy Rating with an average price target of $228.00. Recent analyst moves include:
- BMO Capital: Outperform (Lowers Target to $200.00) (April 24)
- Barclays: Overweight (Lowers Target to $256.00) (April 21)
- BMO Capital: Outperform (Lowers Target to $210.00) (April 13)
Top ETFs Holding SAP Stock
- Schwab International Equity ETF (NYSE:SCHF): 0.88% Weight
- Vanguard European Stock Index Fund ETF (NYSE:VGK): 1.56% Weight
- Harbor International Compounders ETF (NYSE:OSEA): 3.80% Weight
Significance: Because SAP carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
SAP Stock Price Activity: SAP shares were down 1.16% at $173.22 during premarket trading on Monday, according to Benzinga Pro data. Shares are falling due to a sector-wide AI-driven selloff and investor fears that new AI agents could erode traditional SaaS demand.
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