Europe's largest software company has a lot of digging to do to get out of its "SaaSpocalypse" hole.

Shares in SAP, which runs the Concur expense-management platform, are up 6% after it reported better-than-expected results late Thursday. It was the latest in a string of reassuring updates from software businesses whose stocks were punished in a freakout over AI disruption to software-as-a-service providers.

The anxiety may be fading, but SAP stock is still down some 35% in 2026. For some, that looks like a buying opportunity. Bank of America analysts have a EUR208 price target for SAP-more than 50% higher than where it's trading today. They like the company's backlog of cloud sales.

But buying into the recovery story requires investors to look past SAP's own AI-related spending, which dragged on profits. "SAP is really at the start of the journey in identifying the right mix of human involvement and AI help," said Ben Barringer, head of technology research at U.K. investment manager Quilter Cheviot.