SAP adjusts profit forecast due to large-scale investments in artificial intelligence

German technology company SAP has changed its operating profit forecast for 2026, citing short-term costs for artificial intelligence (AI) development and strategic acquisitions. According to reports, the expected profit (non-IFRS) will be in the range of 11.8 – 12.2 billion euros, compared to the previous 11.9 – 12.3 billion euros.

The main reason for the adjustment is the dilutive effect of investments exceeding 100 million euros in the acquisition of companies Dremio and Prior Labs. These steps are part of SAP's strategy to integrate AI into corporate processes, ensuring data security and compatibility for financial, logistics, and HR systems.

Despite the lowered profit forecast, the company confirmed its cloud services revenue targets for 2026, which are set between 25.8 and 26.2 billion euros. Second-quarter data shows steady growth in this segment – cloud services revenue increased by 24% on an annual basis (to 6.28 billion euros), and current orders jumped by 26%.

SAP's transformation from selling software licenses to subscription-based cloud services is in an advanced phase. While license revenue fell by 32%, revenue from the "Cloud ERP Suite" product saw a growth of 27%. Investors reacted positively to the news, with the company's shares rising by 4.5% following the reporting of orders that exceeded expectations.