SAP is expanding AI tools around enterprise data and workflows. It reported Q2 cloud revenue up 22% and current cloud backlog up 27% to €22.9 billion, and expects recent acquisitions to dilute 2026 non-IFRS operating profit by more than €100 million.
At its May 2026 Sapphire event, SAP introduced a Business AI Platform combining Business Technology Platform, Business Data Cloud and Business AI; a Knowledge Graph is designed to give agents structured business context from customer systems. At the September 22–24 Transformation Excellence Summit, SAP highlighted new capabilities in Signavio, LeanIX, WalkMe and Cloud ALM for deploying, governing and scaling agents. AI and Business Data Cloud were embedded in more than 90% of its 50 largest deals; SAP forecasts 2026 cloud revenue of €25.8–€26.2 billion, up to 25% growth at constant currencies.
The expected dilution is tied to the completed acquisitions of Dremio and Prior Labs. The analysis says that if AI adoption does not increase revenue or retention, added investment could pressure margins. Insider Monkey's database showed 35 hedge funds held SAP shares at Q2-end, up from 33 the previous quarter; it reported short interest at 0.44% of public float and bearish bets down more than 37% from the previous reading.
