SAP SE shares closed slightly higher on Friday, with the company's treasury holdings crossing a notable threshold. The enterprise software firm now holds over 5% of its own share capital, a move that reduces the number of shares available in the public market.
Buyback Program in Focus
The increase in treasury stock follows the initiation of a substantial share repurchase plan. SAP has authorized a program to buy back up to €2.6 billion worth of its shares between early February 2026 and late July 2026. This initiative is part of a broader capital return strategy extending through 2027.
This development comes at a time when SAP's stock has faced pressure. Investor sentiment cooled in late January after the company's cloud revenue outlook, while still projecting 23%-25% growth for 2026, revealed a steeper-than-expected decline in cloud backlog growth.
Market Context and Upcoming Catalysts
Buyback programs across the software sector are being scrutinized as the industry grapples with potential disruption from new artificial intelligence tools and concerns over customer spending. While repurchases can provide support for a stock price, analysts note they are often not a catalyst for sustained rallies amid fundamental growth questions.
The market's attention will now shift to forthcoming corporate updates. SAP is scheduled to release its Integrated Report on February 26, followed by its next quarterly results on April 23. The company's annual general meeting is set for May 5.
