German software giant SAP SE has crossed a significant ownership threshold, now holding more than 5% of its own shares, according to recent regulatory filings. The company's stake reached 5.0254% as of February 5, triggering mandatory disclosure requirements.
Buyback Program Launches
SAP has begun the first phase of its substantial share repurchase initiative, which authorizes up to €10 billion in buybacks through December 2027. The current transe, which commenced this week, allocates approximately €2.6 billion for share purchases on the Xetra trading platform and must conclude by July 27. The company will pause repurchases around its annual shareholder meeting and will disclose transaction details within seven trading days after execution.
Market Performance and Outlook
SAP shares closed at €171.22 in Frankfurt on Friday, representing a modest daily gain of 0.4% but remaining nearly 18% lower year-to-date. The stock experienced a sharp decline of approximately 15% on January 29 after the company's 2026 cloud revenue forecast fell below analyst expectations. SAP now projects cloud revenue between €25.8 billion and €26.2 billion for 2026, with free cash flow expected around €10 billion.
Notably, SAP's American Depositary Receipts (ADRs) showed stronger momentum, climbing roughly 3% to $203.34 in after-hours trading on Friday. This outperformance compared to the Frankfurt session has traders watching for potential carryover effects when European markets reopen.
Growth Metrics Under Scrutiny
Investors continue to monitor SAP's current cloud backlog, which represents contracted cloud revenue expected to convert within the next twelve months. The company anticipates this metric will "slightly decelerate" in 2026, noting that some larger contracts include termination clauses that could reduce backlog figures. This measurement has become a key indicator of the company's growth momentum.
The broader software sector has faced pressure recently, with concerns that advancing artificial intelligence technologies may encroach on traditional software margins. Approximately $830 billion in market capitalization evaporated across global software names following January 28, according to Reuters reports.
Market participants will scrutinize upcoming buyback disclosures for insights into SAP's purchasing patterns and pricing. Additional focus remains on potential developments regarding "sovereign cloud" agreements with government and defense clients. The company's Integrated Report 2025 is scheduled for February 26, followed by first-quarter results on April 23 and the virtual annual shareholder meeting on May 5.
