SAP Tightens the Purse Strings and Accelerates AI — but the Stock Keeps Slipping
Published on 07/08/2026 at 21:28 | Redaktion boerse-global.de
The message from Walldorf is unmistakable: SAP is in full restructuring mode, channelling every available euro into artificial intelligence while freezing nearly everything else. An internal memo dated July 2 outlines a sweeping cost crackdown — non-essential business travel has been halted and hiring outside the AI division has been effectively frozen. The goal is to free up cash to fund the company’s pivot toward agentic AI solutions.
The most visible sign of that pivot came on July 6, when SAP completed its acquisition of data platform Dremio, weeks earlier than the market had anticipated. Dremio allows customers to combine internal and external data sources in real time without the usual data-transformation headaches — a capability SAP sees as critical to getting its AI-powered offerings to market faster. The Brazilian cosmetics group Natura &Co is already using a generative AI tool built on SAP’s infrastructure to automate financial analysis.
Yet for all the strategic urgency, the stock market remains unimpressed. SAP shares fell to €138.52 on Wednesday, bringing the year-to-date decline to 31.43%. The stock is now trading well below its 200-day moving average, which sits at roughly €180, and stands more than 48% off the all-time high of €266 reached last summer. The technical picture points to a firmly entrenched downtrend.
Should investors sell immediately? Or is it worth buying SAP?
Investors are now counting down to July 23, when management will release second-quarter results. Consensus estimates put quarterly revenue at €9.85 billion, an increase of about 9% year on year, while earnings per share are expected to come in at €1.76, up from €1.46 in the same period a year earlier. For the full year, SAP is targeting cloud revenue growth of 23% to 25%, building on a 19% expansion in the first quarter.
The upcoming numbers will provide the first concrete test of whether the combination of aggressive cost cuts and targeted AI acquisitions can actually stabilise margins and restore confidence in a stock that has lost nearly a third of its value in 2026. For now, the market is waiting for proof — and the patience appears to be wearing thin.
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