SAP Stock Rises on Strong Cloud Growth and AI Optimism, Jefferies Raises Price Target

Font: Financial Modeling Prep  • Oct 22, 2026

• Jefferies maintains a Buy rating on SAP SE (NYSE: SAP) and has raised its price target to €250.00, reflecting strong market confidence.
• The company's recent earnings report highlighted significant cloud revenue growth, benefiting from increasing interest in artificial intelligence and a broader recovery across the software sector.
• SAP SE (NYSE: SAP) anticipates robust full-year 2026 cloud and software revenue, supported by substantial growth in its cloud backlog.

SAP SE (NYSE: SAP) makes enterprise software that businesses use to manage operations, including financial management and supply chain solutions. Jefferies maintains its Buy rating and raises its price target to €250.00 from €220.00. A price target is an analyst’s estimate of where a stock could trade. SAP trades at $241.39 when Jefferies posts the update.

The higher target follows an earnings report that lifts SAP shares, as highlighted by Barron’s. Barron’s describes SAP as benefiting from interest in artificial intelligence (AI) and a broader recovery in software stocks. The provided excerpt does not give an earnings figure or the size of the share-price move.

SAP reports quarterly revenue growth of 13% to €10.27 billion. Cloud revenue rises 26% to €6.67 billion, while Cloud ERP Suite revenue grows 29% to €5.92 billion. These figures show that cloud products account for much of SAP’s quarterly sales.

Current cloud backlog rises 28% to €24.10 billion in the three months through September, or 26% at constant currencies. Backlog is contracted business that SAP has not yet counted as revenue. As highlighted by Proactive Investors, SAP expects full-year 2026 cloud revenue near the upper end of its €25.80 billion–€26.20 billion forecast range at constant currencies.

SAP also expects full-year 2026 cloud and software revenue near the upper end of its €36.30 billion–€36.80 billion range at constant currencies. In the reported trading update, shares rise 3.71%, or $8.63, to $241.36 on the NYSE. The stock trades between $236.29 and $243.03 during the day.