A stark disconnect between SAP’s artificial intelligence offerings and its customer base is emerging as a focal point for market analysts. Recent survey data highlights minimal adoption of the company’s proprietary AI tools, coinciding with a downward revision of the price target by Barclays.
Survey Exposes Preference for Third-Party AI
The core issue has been quantified by the German-speaking SAP User Group (DSAG). Their findings reveal a significant reliance on external solutions among SAP’s clientele. For companies already deploying AI in production, a substantial 77% utilize third-party applications. Only 3% report using SAP’s own AI. This pattern persists in the testing phase, where external providers command 65% usage compared to 8% for SAP.
According to the DSAG, the primary barriers are complex licensing models and outdated on-premise system landscapes that hinder innovation. In response, SAP has announced a structural overhaul set for July 2026, shifting its AI services from subscription-based models to consumption-based billing. This strategic pivot exchanges predictable revenue for usage-based income. A glimmer of potential is noted in investment intentions: 16% of surveyed companies now plan specific budgets for AI functions within the SAP Business Technology Platform, a notable increase from just 2% the previous year.
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Barclays Adjusts Outlook Amid Sector-Wide Concerns
Reflecting strategic uncertainties in the AI segment, Barclays has trimmed its price target for SAP shares from €240 to €220. The bank maintained its “Overweight” rating, however. Analyst Sven Merkt cited growing competitive pressures from AI applications across the entire software sector as the rationale. He suggested that even robust quarterly results may do little to immediately alleviate concerns about rising margin pressure.
Providing some support for the equity is the company’s ongoing share buyback initiative. In late March alone, SAP acquired nearly four million of its own shares via the Xetra trading platform. These purchases form part of an initial tranche worth up to €2.6 billion.
Market Awaits Q1 Report as Quiet Period Begins
SAP is currently in a quiet period, during which management refrains from commenting on operational developments. Investor attention is now fixed on April 23, the scheduled release date for first-quarter results. The analyst consensus forecasts earnings per share of €1.64 for the opening quarter. This report will serve as a crucial early-year test, indicating whether the company’s cloud growth remains stable and if its reshaped AI strategy is already translating into measurable contract signings.
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