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SAP cuts 2026 operating profit target to €11.8 billion–€12.2 billion on AI acquisition dilution

AI Market Summary
SAP lowered its 2026 non-IFRS operating profit outlook by €0.1bn on each end, citing over €100m dilution from AI-related acquisitions (Dremio, Prior Labs). While cloud revenue targets and strong cloud growth/backlog signal resilient contracted demand, the profit-guide cut shifts the near-term valuation anchor and highlights margin pressure from AI investment and M&A integration costs.
Impact level
● Medium
Affected assets
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AI Insight · NCSKSAP2USD/USDTAI Insight
▼ Bearish
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SAP lowered its 2026 non-IFRS operating profit outlook to €11.8 billion–€12.2 billion, citing more than €100m of dilution from the AI-related acquisitions of Dremio and Prior Labs. The company kept its 2026 cloud revenue target unchanged at €25.8 billion–€26.2 billion. Second-quarter cloud revenue rose 24% year-on-year to €6.28 billion, while current cloud backlog increased 26% to €22.93 billion.