The Bundeskartellamt registered SAP’s notification for the Dremio acquisition on May 19, bringing the data-lakehouse specialist into the Walldorf group’s fold. The deal, designed to eliminate the cumbersome data shuffling that often derails corporate AI projects, represents the latest strategic bet on unifying fragmented data environments. CTO Philipp Herzig has argued that most AI initiatives fail not because of model shortcomings but due to poorly prepared data — and Dremio is meant to embed directly into the SAP Business Data Cloud to resolve that bottleneck.
Investors, however, remain cautious. The stock closed the week at €152.10, a modest 0.53% gain on the day and a 4.48% weekly rise. That recovery from the 52-week low of €137.62, set on May 13, amounts to roughly 10% — but the broader picture is starker. Since hitting a 52-week high of €271.60 in June 2025, SAP shares have shed around 44% of their value.
Analyst targets diverge sharply from the current price floor. Deutsche Bank’s Johannes Schaller reaffirmed a “Buy” rating and €200 price target on May 18, drawing confidence from the AI innovation roadmap unveiled at the Sapphire conference. The firm argues that clear customer benefits and low adoption barriers will accelerate cloud uptake and lift profitability through higher-margin AI services. Jefferies followed with a €230 target on May 23, citing platform synergy potential, while UBS sees €205. On the more conservative end, DZ Bank sets its target at just €155 — barely above the current trading level.
Should investors sell immediately? Or is it worth buying SAP?
Schaller’s optimism hinges partly on solid first-quarter results. SAP reported revenue of €9.56 billion, a roughly 6% year-on-year increase, and non-IFRS earnings per share of €1.72, up from €1.52. The annual dividend of €2.50 per share for fiscal 2025 was already paid out on May 8. Consensus estimates point to EPS of €7.22 for full-year 2026.
The Dremio deal fits into a broader push toward autonomous business processes. SAP plans to deploy over 200 specialized AI agents that can independently manage workflows. Creating a consistent data foundation through Dremio’s technology is seen as critical to making those agents effective — a vision the company laid out at Sapphire and now backs with a concrete acquisition filing.
Yet near-term technical signals flash caution. The stock trades roughly 21% below its 200-day moving average, and the relative strength index of 86.9 suggests overbought conditions after the recent bounce. The next major catalyst arrives July 23, when second-quarter earnings will reveal whether Sapphire’s announcements — and the Dremio deal — have translated into measurable growth in cloud contract volume. If the cloud order book expands convincingly, the €200-plus analyst targets gain real traction. If momentum stalls, the gap to last year’s high may widen once again.
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