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Finance

SAP trims profit outlook after acquisitions

Published by Global Banking & Finance Review

Posted on July 23, 2026

1 min read

· Last updated: July 23, 2026

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SAP trims profit outlook after acquisitions

Financial Performance and Outlook Update

July 23 (Reuters) - SAP on Thursday cut its 2026 non-IFRS operating profit outlook to €11.8 billion to €12.2 billion at constant currencies, from €11.9 billion to €12.3 billion euros, citing the dilutive impact of the Dremio and Prior Labs acquisitions.

Revenue Targets

Its cloud and software revenue targets were unchanged.

Cloud Revenue Growth

Cloud revenue rose 24% year-on-year at constant currencies to 6.28 billion euros, while software licence revenue fell 32% at constant currencies to 131 million euros, reflecting SAP's shift from upfront licences to subscriptions.

Cloud Backlog and Future Outlook

Current cloud backlog rose 26% at constant currencies to 22.93 billion euros, signalling resilient contracted cloud revenue over the next 12 months.

(Reporting by Leo Marchandon in Gdansk; Editing by Chris Reese)

Key Takeaways

The reduced outlook reflects the near-term earnings dilution from the two AI‑focused acquisitions—Dremio and Prior Labs—even as SAP continues to invest heavily in enterprise AI capabilities
The Dremio acquisition strengthens SAP’s Business Data Cloud by integrating an agentic lakehouse platform, improving analytics and AI on both SAP and non‑SAP data sources (news.sap.com)
The Prior Labs acquisition, backed by over €1 billion in planned investment over four years, positions SAP to lead in Tabular Foundation Models for structured business data (news.sap.com)

References

Frequently Asked Questions

Why did SAP lower its 2026 profit outlook?

SAP cut its 2026 profit outlook due to the dilutive impact of acquiring Dremio and Prior Labs.

Which acquisitions impacted SAP’s profit outlook?

The acquisitions of Dremio and Prior Labs led to the revised profit outlook.

Who reported on SAP’s profit outlook cut?

The report was by Leo Marchandon in Gdansk, edited by Chris Reese.

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SAP trims profit outlook after acquisitions

SAP trims profit outlook after acquisitions

Financial Performance and Outlook Update

Revenue Targets

Cloud Revenue Growth

Cloud Backlog and Future Outlook

Key Takeaways

References

Frequently Asked Questions

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