SAP falls after UBS cuts to 'neutral' on AI roll-out concerns

SAP SE

26/08/2026 09:19

** Shares in SAP SAPG.DE fall around 4% after UBS cut the German software company to "neutral" from "buy", citing a slow roll-out of agentic AI could curb monetisation opportunities and prompt customers to build their own AI solutions
** UBS says SAP's valuation is reasonable, but investor sentiment remains fragile 
** "While we continue to see it as a pre-eminent system of record with a deep moat around its core business, it is only delivering agentic AI into customers' hands slowly," the broker says
** It says this could "limit the monetisation opportunity" and increase the risk of customers taking a do-it-yourself approach to AI adoption in the interim
** UBS adds that a slowdown in cloud backlog growth in H2 is highly likely and free cash flow (FCF) upside against guidance is less likely this year, despite continued support from the RISE migration cycle and healthy earnings growth expectation
** The stock, which has lost 14.5% YTD including Wednesday's session, is the worst performer on the pan-European STOXX 600 .STOXX index
** Out of 35 analysts that cover SAP SE, 28 rate the stock "strong buy" or "buy,"​ six rate "hold" and one rates the stock "strong sell"​​ - LSEG data

(Reporting by Ozan Ergenay)
((ozan.ergenay@thomsonreuters.com))