SAP lowers 2026 profit goal due to AI acquisitions
SAP just lowered its 2026 profit goal to €11.8 billion to €12.2 billion, solely because of a more than €100 million dilutive impact from AI-focused acquisitions, thanks to buying firms like Dremio and Prior Labs.
The company says these moves are all about building smarter, more secure AI tools for business tasks like finance and human resources.
Even with the extra costs, SAP is sticking with its original cloud revenue forecast of €25.8 billion to €26.2 billion.
SAP cloud revenue up 24%
SAP's cloud business keeps climbing: second-quarter 2026 cloud revenue jumped 24% year-over-year to €6.28 billion, and future contracted revenue hit €22.93 billion, a good sign for what's ahead.
Its Cloud ERP Suite also saw a solid 27% boost as more clients signed up for subscriptions, but traditional software license sales dropped by 32% as SAP shifts away from one-time purchases toward a subscription model that better fits today's market trends.