SAP SE (XETR:SAP) cut FY non‑IFRS operating profit guidance after Prior Labs and Dremio costs, with Q2 margins and EBIT missing estimates, yet it pushes hard into AI—Business AI Platform, Joule Studio/Work, multi‑LLM support and hundreds of assistants/agents—raising execution and guidance risk.
Previous Week Recap
- SAP Trims Full-Year Guidance: SAP trimmed full-year non‑IFRS operating profit guidance to €11.8–€12.2B, citing a €100M impact from Prior Labs and Dremio deals; analysts flag rising guidance risk and longer large-deal cycles.
- SAP Forecasts Earnings, Revenue: SAP SE Sponsored ADR (SAP) forecast: Q‑earnings €1.77/sh and revenue €9.86B. 12‑month price target $252.50 vs last close $146.38.
- SAP Q2 EBIT Misses Estimates: SAP (SAP) Q2 EBIT missed estimates and margins narrowed year‑over‑year. J.P. Morgan cites cost pressure and cost cuts; full‑year guidance requires a sizable H2 EBIT rebound from Q2 levels.
- SAP AI Platform And Plans: SAP focuses AI on Business AI Platform, Joule Studio, Business Data Cloud and new Joule Work. Plans multi‑LLM support, ~50 assistants by end‑Q3 and 400+ autonomous agents by year‑end.
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