SAP Trims 2026 Profit Goal, Signalling Cost of AI Push
- On Thursday, July 23, 2026, SAP SE reported Q2 2026 financial results, with cloud revenue rising 24% to €6.28 billion while software license revenue fell 32% to €131 million.
- SAP adjusted its 2026 non-IFRS operating profit outlook to €11.8 billion to €12.2 billion, down from €11.9 billion to €12.3 billion, citing the dilutive impact of Dremio and Prior Labs acquisitions.
- The company completed its acquisition of Dremio on July 6 and purchased Prior Labs on July 16, bringing a leading Tabular Foundation Models research team into the SAP family.
- Current cloud backlog rose 26% at constant currencies to €22.9 billion, signalling resilient contracted revenue over the next 12 months, while customers globally continued choosing "RISE with SAP."
- Total revenue growth in 2026 is expected to remain at 2025 levels, with SAP projecting acceleration in 2027, assuming a near-term de-escalation of the Middle East conflict.
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31 Articles
SAP's cloud beat calms AI fears, but profit outlook dips
SAP gave investors the number they wanted. Europe’s biggest software company said cloud revenue grew 22% to €6.28 billion in the second quarter, beating forecasts, SAP announced. Its cloud backlog, a measure of future sales, jumped 26%. The stock rose more than 6% in Frankfurt. That relief is the story. SAP’s shares are down about […] This story continues at The Next Web
Strong cloud contracts and the hope for new business by AI have helped the SAP share to the plus. The DAX benefits from this – and also increases other software values.
SAP's shares fired after closing the market on Thursday (23), once the German technology company removed concerns about its software business with a better quarterly result than expected. Exclusive material for subscribers. To have full access, access the link of the subject and make your registration.
SAP trims 2026 profit goal, signalling cost of AI push
SAP has trimmed its 2026 operating profit outlook as recent AI-focused data acquisitions weighed on earnings, showing the near-term cost for enterprise software makers of adapting their products for artificial intelligence.
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