European stocks close higher, boosted by strong SAP results driving DAX surge

EarningsMacro
โดย InfoQuest·Read original
Summary · why it matters

European stock markets closed higher on Friday, recovering from the sharp drop in the previous session, supported by strong corporate earnings. The STOXX 600 index closed at 644.51 points, up 0.82%, while Germany's DAX index surged 1.36% after SAP shares jumped 10% on higher-than-expected growth in cloud order backlog for the second quarter. European technology stocks rose 1.7%, rebounding from earlier declines, despite disappointing results from STMicroelectronics and BE Semiconductor. Deutsche Bank analysts warned that capital spending by tech giants is no longer supported solely by free cash flow, and low-cost open-source AI is seriously threatening business models. Meanwhile, three European Central Bank policymakers signaled that another rate hike may be necessary due to persistent inflation risks, with markets pricing in around a 70% chance of a 0.25% increase by the end of 2026. Valmet shares surged 22% after results beat expectations and the company announced plans to spin off a business, while Securitas shares fell 11% after profit missed forecasts, and Neste dropped 6.4% on a slight earnings miss.

Impact on stocks 6

Industrials▼ · 1 stocks
Synthetic Biology (non-pharma)▼ · 1 stocks
Robotics & Physical AI▲ · 1 stocks
Valmet Corp.
0QIW
▲ PositiveCapitalrelevance

Results beat expectations and announced spin-off plan, shares surged 22%.

Semiconductors▼ · 1 stocks
Cloud & Digital Infrastructure▲ · 1 stocks
SAP SE
SAP
▲ PositiveDemandrelevance

Higher-than-expected growth in cloud order backlog for Q2, shares jumped 10%.

Information Technology▼ · 1 stocks

Theme Impact 3

Related news

IREN Fair Value Trimmed to US$79.03 as AI Cloud Wins Meet Build Out Risks

IREN's fair value estimate has been trimmed from US$80.93 to US$79.03, a modest adjustment reflecting a mix of growing AI cloud contracts and ongoing questions around execution and supply build out through 2027. The revision lifts revenue growth assumptions to 168.01% from 125.79% and net profit margin expectations to 11.73% from 5.79%, while the future P/E assumption drops to 31.26x from 90.29x and the discount rate rises to 9.41% from 8.83%. On the bullish side, JPMorgan shifted IREN from Underweight to Overweight with a US$65 price target, citing a partnership with Nvidia, new customer signings and higher industry pricing, while H.C. Wainwright raised its target to US$90 after IREN announced US$2.8b of new multi year AI cloud contracts and lifted its 2026 AI cloud annual recurring revenue target to more than US$4b. Northland initiated IREN at Outperform with a US$99 price target, and Freedom Capital upgraded the stock from Hold to Buy. Freedom Capital nonetheless flagged execution on supply additions over the next two years as a central risk, noting the story depends heavily on adding capacity on schedule.
IREN ▲JPM ▲
Artificial Intelligence ▲Cloud & Digital Infrastructure
Simply Wall St·9hRead more →
impact 4

Nvidia-Backed Nscale Files for US IPO After $1.02 Billion Loss

Nscale, the London-based AI data center developer backed by Nvidia and Microsoft, filed publicly for an initial public offering in New York, seeking to raise as much as $3 billion. The company reported a net loss of $1.02 billion on revenue of $140.6 million for the six months ended June 30, compared with a net loss of $368.9 million on revenue of $10.4 million a year earlier, according to its Friday filing with the US Securities and Exchange Commission. Spun off from a cryptocurrency mining operation in early 2024, Nscale was valued at about $14.6 billion in a March Series C round led by Aker ASA and 8090 Industries, with Nvidia and Nokia Oyj also participating. The company has agreed to add more than 30,000 Nvidia chips to an existing rental agreement with Microsoft at its Narvik, Norway gigafactory, and Anthropic has agreed to spend $45 billion to rent AI cloud computing power from its flagship West Virginia data center development. The offering is being led by Goldman Sachs, JPMorgan Chase and Morgan Stanley, with shares expected to trade on the New York Stock Exchange under the symbol NSCL.
NVDA ▲MSFT ▲GS ▲JPM ▲MS ▲0MJX.LSE
Artificial Intelligence ▲Cloud & Digital Infrastructure
Bloomberg·10hRead more →
▲2

Tigress Analyst Raises Alphabet Price Target to Street-High $485

Tigress Financial Partners analyst Ivan Feinseth reiterated a Strong Buy rating on Alphabet and raised his price target to a Street-high $485 from $415, implying roughly 39.6% upside. The bullish thesis centers on Alphabet turning its massive AI investments into growth across Search, Cloud and Gemini, with Feinseth arguing AI Overviews and AI Mode can make Google more useful for complex, high-intent queries. Recent results support that argument: Alphabet's second-quarter revenue rose 24% from a year earlier to $119.8 billion, Search and Other revenue increased 17%, YouTube advertising grew 13%, and operating income climbed 30% to $40.77 billion. Google Cloud revenue surged 82% to $24.8 billion, operating income more than tripled to $8.8 billion, margins reached 35.6%, and its $514 billion backlog gives visibility into future enterprise demand. Gemini has reached 950 million monthly active users, more than 9 million monthly developers and roughly 22 billion API tokens processed per minute, and Feinseth sees monetization opportunities across subscriptions, APIs, enterprise software, agents and productivity products, though the risk remains that Alphabet must prove its enormous AI spending generates sufficient returns.
GEMIGOOG
Cloud & Digital Infrastructure ▲Artificial Intelligence ▲
GuruFocus·11hRead more →
© 2026 MarketDXNews