German software giant SAP said it has already secured about 85% of its 2026 revenue from large contracts related to artificial intelligence (AI).
The company’s success reflects strong corporate demand for AI and cloud solutions and positions SAP as Europe’s top AI prospect in the tech space.
Management reiterated its operating profit forecast to the upper end of its previous expectations, highlighting strong AI-related contract activity, even as third-quarter results and revenue missed expectations.
However, the stock briefly reacted negatively as some investors focused on the growth of recurring cloud revenue. The company had previously said its cloud revenue forecast would be at the lower end.
However, according to CNBC, SAP’s strong contract activity for AI and cloud offerings is being interpreted as a positive signal that supports long-term earnings momentum. This shows the growing interest in enterprise-level AI technologies in Europe and SAP's desire to lead in this area.
