On July 22, SAP SE declined 3.05% in regular trading, trading at $149.635 per share, with turnover of $267 million. The decline came on the eve of the company's quarterly earnings release scheduled for July 23 after market close.

On the news front, multiple investment banks issued downgrades ahead of the earnings announcement. Barclays cut its target price to $255, UBS lowered its target from EUR 205 to EUR 164, and Wells Fargo reduced its target from EUR 250 to EUR 180. Industry analysts noted that enterprise IT budgets are accelerating their shift toward AI, raising concerns that traditional software vendors like SAP face risks of cloud backlog orders and new subscription sales falling short of expectations.

The broader Application Software sector traded weak on the same day. Among peers, Salesforce fell 3.76%, Palantir Technologies declined 4.36%, and AppLovin dropped 3.94%. Market consensus expects SAP to report revenue of EUR 9.861 billion for the quarter, up 8.65% year-over-year, with adjusted EPS of EUR 1.77. Separately, SAP recently announced tighter hiring and travel controls to redirect resources toward AI initiatives.

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