SAP's Cloud Backlog Offers Cushion as Analysts Trim Targets and AI Push Broadens

JPMorgan leads SAP downgrades as Kepler Cheuvreux turns cautious; cloud backlog rises 27% to EUR 22.9 billion despite acquisition dilution.

Analysts have turned more guarded on SAP, with JPMorgan leading a round of downgrades and Kepler Cheuvreux also striking a cautious note. The wave of revised price targets lands on a stock that is already nursing a soft stretch, and the prevailing worry centers on how quickly the Walldorf-based DAX heavyweight can convert its strategic technology bets into revenue.

The shares changed hands at EUR 183.26 on the day, eking out a modest gain of 0.4%. That followed a close of EUR 182.86 in the prior session, leaving the stock down 13% since the start of the year. Even so, the paper sits comfortably above its longer-term trend gauge — roughly 9.2% above its 200-day moving average of EUR 167.44 — as investors weigh whether fresh AI initiatives and industrial partnerships can reignite operating momentum.

Cloud Demand Holds Up Despite Acquisition Drag

Underneath the cautious analyst tone, the core business is still expanding. Cloud backlog climbed 27% to EUR 22.9 billion in the second quarter of 2026, while cloud revenue advanced 22% year over year.

Recent dealmaking, however, is leaving marks on the income statement. Dilution effects tied to the acquisitions of Dremio and Prior Labs, exceeding EUR 100 million, prompted the company to revise its operating profit guidance to a range of EUR 11.8 billion to EUR 12.2 billion. Management expects integrating those platforms to reinforce its data management capabilities and its artificial intelligence offerings.

Agentic AI and Industrial Alliances Take Center Stage

Chief executive Christian Klein is leaning heavily into agentic systems to generate fresh momentum. For the second half of the year, he announced more than 400 AI agents along with a new platform for enterprise applications. Running alongside these operational moves, SAP continues to support its share price in the capital markets by steadily executing its ongoing buyback program.

The technology build-out is not confined to internal development. On September 15, the company made the TabPFN-3.5 Plus model available in SAP AI Core, giving customers the ability to generate immediate business forecasts. The addition to its AI infrastructure is designed to embed automated predictions directly into existing business processes and speed up analytical workflows.

Progress is also visible in how those systems are being deployed across heavy industry. According to media reports, Wipro teamed up with Saudi Aramco and the Walldorf group on Thursday to roll out the "Wipro STO360" platform, an application aimed squarely at heavy-industry operations. SAP serves as the technology partner within the consortium, while Wipro carries the industry solution.

Recognition in Cloud HR and a Reworked Support Portfolio

Beyond industrial applications, SAP reported gains in its personnel software segment. On Friday, the company was named a Strategic Leader in the "2026 Fosway 9-Grid" for Cloud HR — a ranking that reflects its standing in the European market for human resources management solutions.

The group has also adjusted its sales and support structures. Its Services and Support portfolio is now organized into three Success Plans — "Foundational," "Advanced" and "Max" — accompanied by three specific add-on offerings intended to cover differing requirements in ongoing system support.

Investors are now assessing the extent to which the new artificial intelligence initiatives and the industrial-sector collaborations can deliver fresh impetus to the company's operating business.