SAP is leaning harder into artificial intelligence just as its cloud business continues to do the heavy lifting for investors. In its second-quarter 2026 results, the Walldorf group said current cloud backlog reached €22.9 billion, up 27% year on year, while cloud revenue rose 22% and total revenue increased 9%. The company also lifted its 2026 non-IFRS operating profit outlook to reflect the dilutive effect of recent acquisitions, including Dremio and Prior Labs. (
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That operational momentum has helped stabilise sentiment after a sharp summer sell-off, even though the shares remain well below their earlier highs. SAP’s recent results show the kind of recurring-revenue visibility that many software investors want, with the company framing its progress around an “Autonomous Enterprise” strategy in which AI sits across both business workflows and development tooling. (sap.com)
The latest push on the sales side is a redesigned go-to-market model built around AI agents. In a company statement published on August 20, SAP said the new set-up is intended to give sales teams a single entry point to access specialist agents for tasks such as planning, prospecting, proposals, content creation and customer follow-up. SAP is presenting that as a way to cut repetitive work and speed up commercial execution. (publicnow.com)
On the engineering side, SAP has also broadened access to agentic tools for developers. The company said its ABAP MCP Server, which connects third-party and AI tools to ABAP systems, was generally available from the second quarter of 2026 for Eclipse and Visual Studio Code, allowing developers to plug external AI tooling into SAP’s core programming environment. (news.sap.com)
The backdrop to all this remains a cloud transition that is still gaining scale. SAP said its cloud ERP suite revenue grew 25% in the quarter, while IFRS operating profit rose 8% and non-IFRS operating profit increased 7%. Management has linked that progress to sustained demand for its cloud platform and a broader shift towards AI-enabled enterprise software. (sap.com)
SAP has also been buying back stock, adding another layer of support to the equity story. The company said it continued repurchases under its programme, while a preliminary review by Germany’s Bundeskartellamt ended without an abuse-of-proceedings case, removing a potential regulatory overhang. (sap.com)
For now, the investment debate is less about whether SAP is executing and more about how much of that execution is already in the price. The company’s cloud backlog, AI rollout and capital returns point to a business that is still strengthening; the question is whether analyst expectations will eventually catch up. (sap.com)
Source: Noah Wire Services
