SAP SE, along with its subsidiaries, provides enterprise application and business solutions worldwide. Its offerings include SAP Business AI, SAP S/4HANA for finance, risk, project management, procurement, manufacturing, supply chain, asset management, and R&D; SAP SuccessFactors for human resources, time, payroll, talent, employee experience, analytics, and planning; and spend management solutions for direct and indirect spend, travel and expense, and external workforce management. The company also offers SAP customer experience solutions, the SAP Business Technology platform, SAP Business Network, SAP Signavio, industry-specific solutions, SAP LeanIX, WalkMe, SAP Enable Now, Taulia solutions for working capital management, and sustainability solutions and services. Additionally, SAP provides services and support solutions, and has a strategic collaboration with Fresenius SE & Co. KGaA and Avelios Medical GmbH to develop a cloud-native hospital information system with AI integration. Founded in 1972, SAP SE is headquartered in Walldorf, Germany.
Atos has received the SAP Sovereign Cloud Partner designation, reinforcing its Digital Sovereignty strategy. The recognition, announced September 16, 2026, applies currently to Germany, France, the Netherlands and the United Kingdom, with validation for additional locations underway. Atos said the designation strengthens its position to support regulated organizations in adopting cloud and AI solutions from SAP with full control over data, operations and compliance. Florin Rotar, Chief Technology Officer of Atos Group, said the recognition reinforces Atos' strategy to deliver sovereign digital transformation at scale, while Martin Merz, President Sovereign Cloud at SAP, said working with Atos as a validated partner expands the reach of SAP Sovereign Cloud. Atos, a longstanding SAP platinum partner, was recently awarded the golden certificate from SAP, celebrating 20 consecutive years with SAP Certification for Operations Partners as a certified SAP Global Operations Partner, making it only the second SAP partner with global operations certification to receive the golden certificate.
SAP CEO Christian Klein Says the End of the Keyboard Is Near
SAP CEO Christian Klein predicts that typing data into business systems will end within two to three years at the software giant, calling voice the next workplace advantage. "The end of the keyboard is near," Klein said, pointing to the strength of voice recognition in large language models and saying the remaining work is translating voice into business language and business data. He said SAP coworkers will increasingly use voice to ask analytical questions, trigger operational workflows, and make entries such as performance feedback and pipeline updates, adding that the technological capabilities exist and the challenge is execution. Klein, 44, the youngest CEO of a major company listed on Germany's DAX index, said AI delivers value only when applied horizontally across a whole business rather than as an efficiency hack inside one division, and cited a large consumer goods customer where SAP is building an end-to-end planning scenario with agents that helps optimize inventory by 20%. Speaking at the World Economic Forum meeting in Davos, he also warned that geopolitics is reshaping software requirements, with companies asking how to operate in a more fragmented world of sovereignty rules, geo-locking, and export controls, and said Europe is a superpower in regulation but not in unity.
Rimini Street and Datacom Sign Strategic Partnership for ANZ Oracle and SAP Support
Rimini Street Inc. announced a strategic partnership with Datacom under which Datacom will resell Rimini Support for Oracle and SAP software to public and private sector customers across Australia and New Zealand. Under the reseller agreement, Datacom will offer level 4 support services, security and compliance solutions powered by Rimini Street to clients running perpetually licensed versions of Oracle and SAP software, without requiring them to upgrade or give up their licenses. Rimini Street said clients can save up to 90% of total enterprise software support costs and redirect IT budget and talent toward digital transformation, cloud migration and AI-driven projects. Shirley Riddick, GVP and regional GM for ANZ at Rimini Street, called it a first-of-its-kind partnership for the company in the region, saying organisations can deploy Agentic AI in weeks rather than months on top of their existing systems. Dave Payne, director of Core Platforms for Australia and New Zealand at Datacom, said the partnership extends the life and value of clients' enterprise software investments so they can continue on their AI journeys.
EU Regulators Seek Information on Oracle Licensing Practices
European Union antitrust regulators are examining Oracle Corporation's licensing practices, a person familiar with the matter told Reuters on September 1, in a case similar to one involving German rival SAP SE that was settled with concessions in July. The European Commission is seeking information from third parties, which could either help build a case or lead regulators to drop it if no evidence of wrongdoing turns up. Oracle did not immediately respond to a request for comment, and a commission spokesperson said the EU will continue to monitor possible further anticompetitive practices and abusive conduct in this sector but confirmed there is no formal investigation into any company at this stage. In July, SAP agreed to make it easier for customers to switch to rival service providers or end their contracts, averting a potential fine that could have reached 10% of its global annual revenue.
SAP Canada Study Finds 97% of Firms Unready for Agentic AI
A new study from SAP SE and Oxford Economics finds that while 66 per cent of Canadian organizations are already piloting agentic AI, 97 per cent admit they are not fully prepared to deploy and govern these tools. The average Canadian organization expects to spend CA$39.4 million on AI this year, anticipating a 20 per cent return on investment that is projected to nearly double to 38 per cent within two years, unlocking an additional CA$20.2 million in value per company. Among the 200 Canadian businesses surveyed, 82 per cent believe agentic AI has moderate to high potential, yet 64 per cent report higher-than-expected integration effort, 54 per cent cite reliability or quality issues as usage scaled, 48 per cent say agents took incorrect actions, and 44 per cent saw inconsistent outcomes for the same process. Seventy per cent of leaders admit they are deploying AI agents faster than their governance can keep up, and 46 per cent lack a human-in-the-loop process for autonomous workflows. The report also found that only 18 per cent of Canadian companies take a centralized, strategic approach to AI, 73 per cent struggle with incomplete or inconsistent data, and 78 per cent of leaders are not convinced their upskilling efforts are keeping pace with AI's evolution.
Trifork Expands SAP Partnership With New Customer Experience Reseller Agreement
Trifork Group AG has expanded its nearly 20-year collaboration with SAP through a new reseller agreement for SAP Customer Experience, with an initial focus on SAP Sales Cloud v2. The agreement adds SAP CX to Trifork's existing portfolio of SAP partnerships and capabilities, strengthening its ability to connect customer-facing processes with the broader business and technology landscape. Trifork said the timing reflects growing customer demand for customer experience solutions that link sales, marketing and customer data with core business processes, while SAP rapidly advances its CX portfolio around AI, data and integrated business execution. Trifork also uses SAP Sales Cloud v2 and SAP Engagement Cloud across its own business, giving its teams first-hand experience of the technology. Jørn Larsen, Founder and CEO of Trifork, said the company sees a clear opportunity to combine SAP's CX technology with Trifork's products, engineering capabilities and implementation expertise. Julia Knutti, Chief Revenue Officer Customer Experience MEE at SAP, said Trifork combines strong technology expertise with hands-on experience of SAP CX solutions. Trifork's SAP Customer Experience business is led by Juliane Laske, Sales Director SAP, who is responsible for developing the partnership and growing the SAP CX business. Trifork, listed on Nasdaq Copenhagen under the ticker TRIFOR, has 1,118 FTEs across 16 countries.
SAP CEO sees 'once-in-a-lifetime opportunity' in AI
SAP CEO Christian Klein said the company is seizing a 'once-in-a-lifetime opportunity' to reinvent businesses with AI, as its new platform becomes generally available in the fall. The platform allows customers to build AI agents with any large language model, enriched with a business context layer and governance features. Klein noted that early customer feedback has been positive, and he expects the technology to enable autonomous supply chains and AI-driven financial analysis. He emphasized that within 12 months, the strategy must deliver strong financial results for customers, showcasing how SAP can redefine business operations.
PwC and Palantir Expand Alliance to Scale Enterprise AI
PwC US and Palantir Technologies announced an expansion of their strategic alliance to help organizations scale enterprise AI across critical business functions. The collaboration combines Palantir's AI and data platforms with PwC's industry and transformation expertise, targeting areas such as supply chain, customer lifecycle management, and cyber risk. They also introduced the industry's first AI-native deals IT platform, built on Palantir Foundry and AIP, which aims to execute M&A deals up to 50% faster and cut one-time transaction costs by up to 45%. Additionally, the alliance will leverage PwC's SAP expertise with Palantir's AIP to improve data quality and transformation decisions. Patrick Pugh, PwC's Global Alliances & Ecosystem Leader, emphasized that AI's greatest opportunity lies in transforming enterprise operations, not isolated use cases.
Digital Product Passport Market to Hit $28.80 Billion by 2035
The global Digital Product Passport market is projected to grow from USD 3.24 billion in 2025 to USD 28.80 billion by 2035, at a CAGR of 24.43% from 2026 to 2035, according to SNS Insider. Growth is driven by increasing regulations on product transparency, circular economy initiatives, and demand for material traceability and supply chain visibility. In 2025, SAP SE partnered with a leading logistics company to integrate DPP generation and compliance workflows into SAP S/4HANA. Regionally, Europe is the largest market, with Germany accounting for 27.84% of its revenue, while Asia Pacific is the fastest-growing at over 40% CAGR. The U.S. market, a sub-component of North America, is expected to grow from $0.60 billion in 2025 to $5.32 billion by 2035, while Europe, the largest regional market, is projected to expand from $1.46 billion to $10.94 billion over the same period.
AI Startup Rillet Challenges Oracle, SAP, and Workday with Real-Time ERP
Rillet, a private AI-native ERP startup, is challenging legacy software giants Oracle, SAP, and Workday by replacing batch-processed financials with real-time continuous accounting data. Co-founder and CEO Nicolas Kopp, appearing on CNBC with investor Roelof Botha, explained that Rillet's AI agents work 24/7 in the background, giving CFOs faster and more accurate financial information. Botha, who invested in May 2025, estimated that rivals would need 4 to 5 years to catch up, comparing the difficulty of replacing entrenched ERP systems to open-heart surgery. Rillet aims to fill a staffing gap in accounting, allowing teams to scale more leanly. The company's challenge underscores a broader industry shift toward AI-native architecture, where continuous processing may eventually outweigh the switching costs that have long protected incumbents.
SAP Faces AI Rollout Concerns Amid ESOP Share Sale
SAP SE has filed a shelf registration for US$1.04 billion covering 5,000,000 ordinary shares for an ESOP-related offering, while UBS downgraded the company citing slower-than-expected AI agent rollout, higher AI token costs, softer cloud backlog expectations, and reduced EBIT guidance. These developments highlight a tension between SAP's ambition to embed AI across its platform and investor concerns about the current pace and economics of that monetization effort. The ESOP share sale is seen as immaterial to the investment thesis, but the AI-related concerns are more significant. SAP's recognition on TrustRadius for its Sales, Service, and Commerce Cloud products shows customers using AI-powered workflows at scale, offering a counterpoint to worries about slow agent rollout. However, rising AI token costs could pressure margins, and the company's narrative projects €53.0 billion revenue and €11.2 billion earnings by 2029, requiring 11.5% yearly revenue growth and about a €3.4 billion earnings increase from €7.8 billion today. Optimistic analysts had assumed revenue could reach about €56.2 billion and earnings €12.5 billion, but the latest news may prompt a rethink of that AI-driven uplift.
SAP Jumps 5% as Salesforce Breaks Software's AI Panic
SAP SE surged approximately 4.8% to $221.93 on Thursday, as Salesforce's strong results revived confidence across the software sector, signaling that generative AI may strengthen established platforms rather than disrupt them. SAP entered the rally with 22.93 billion in current cloud backlog, and its second-quarter cloud revenue jumped 24% at constant currencies to 6.28 billion, with backlog expanding 26%. Management maintained its 2026 cloud-revenue target of 25.8 billion to 26.2 billion despite lowering its profit outlook after acquisitions. The stock trades 15.67% below its GF Value estimate of $263.18, suggesting potential upside, but SAP must convert backlog into revenue, generate returns from acquisitions, and use AI to drive new sales, not just protect existing contracts.
Midday movers: Abercrombie surges, Intuit slides on weak guidance
Abercrombie & Fitch soared 37% after trouncing fiscal second-quarter estimates and raising its full-year outlook, with adjusted earnings of $2.42 per share and revenue up 5% to $1.27 billion, helped by tariff refunds and stronger growth at its Abercrombie unit. Intuit fell 4% after offering disappointing fiscal year 2027 guidance of $23.3 billion to $23.5 billion in revenue, below the $23.7 billion analyst estimate, though its fiscal fourth-quarter earnings and revenue beat expectations. Meta Platforms jumped 3% after reaching a settlement with state attorneys general in a case alleging it made its apps addictive to teenagers. Zoom Communications dropped 7% after its third-quarter forecast of $1.46 to $1.48 earnings per share missed the $1.50 estimate. Kohl's rose 2% after raising its full-year outlook, partly due to $150 million in tariff refunds, and announced share buybacks of up to $100 million in 2026. J.M. Smucker climbed 3% on fiscal first-quarter revenue of $2.22 billion, topping the $2.13 billion consensus. SolarEdge Technologies jumped nearly 8% after a UBS upgrade to buy, citing an FCC policy expected to boost market share and pricing power. Semtech rose over 8% on second-quarter earnings beat, with adjusted EPS of 71 cents versus 61 cents expected. Boston Scientific fell 5% after reporting a cybersecurity incident causing product disruptions. SAP declined 3% after a UBS downgrade to neutral, citing slow delivery of agentic AI.
Intuit, Zoom, Kohl's Lead Premarket Declines; SolarEdge, Semtech Rise
Intuit shares plunged 11% in premarket trading after the financial technology platform issued fiscal 2027 revenue guidance of $23.279 billion to $23.512 billion, below the $23.7 billion analysts expected, though its fiscal fourth-quarter earnings and revenue beat estimates. The disappointing outlook dragged other software stocks lower, with the iShares Expanded Tech-Software ETF down over 1%, ServiceNow off more than 2.5%, and Workday and Salesforce each down 2%. Zoom Communications fell 7% after its third-quarter earnings per share guidance of $1.46 to $1.48 came in short of the $1.50 FactSet consensus. Kohl's declined 5% after reporting a 0.9% drop in second-quarter comparable sales, worse than the 0.6% decline expected, but the retailer raised its full-year outlook, partly due to $150 million in tariff refunds, and restarted share buybacks of up to $100 million in 2026. On the upside, J.M. Smucker climbed 5.6% after fiscal first-quarter revenue of $2.22 billion topped the LSEG consensus of $2.13 billion, SolarEdge jumped nearly 7% following a UBS upgrade to buy on a new FCC policy, and Semtech rose more than 5% after beating earnings estimates with adjusted EPS of 71 cents versus 61 cents expected. Box gained over 2% on revenue beat, while Boston Scientific fell more than 3% after disclosing a cybersecurity incident causing product disruptions, and SAP dropped almost 4% after a UBS downgrade to neutral on slow agentic AI delivery.
Stock futures were mixed Wednesday as investors awaited key U.S. inflation data and Nvidia's quarterly results. Among the biggest movers, Semtech gained 3.2% after reporting second-quarter earnings and revenue that beat estimates, with adjusted EPS of $0.71 and revenue up 32.7% to $341.9 million. HEICO rose 2.5% after fiscal third-quarter revenue hit a record $1.41 billion, beating consensus by about 4.7%. On the downside, Spyre Therapeutics fell about 12% after its phase 2 data for SPY072 in rheumatoid arthritis showed mixed results, with the low dose meeting the primary endpoint but the high dose missing. Intuit dropped 11.7% after issuing fiscal 2027 guidance well below consensus, with non-GAAP EPS expected between $22.68 and $23.12 versus the $27.30 estimate. SAP declined 4.8% after UBS downgraded the stock to neutral, citing slow progress in delivering AI products to customers.
Insi Achieves SAP PartnerEdge Sell Status in US and Canada
Insi has achieved SAP PartnerEdge Sell status in both the United States and Canada, authorizing the company to sell SAP Cloud ERP solutions directly across North America. The accreditation extends Insi's role from implementation partner to full commercial partner and is part of a five-year, $5 million USD investment through 2030 to unify its U.S. and Canadian operations. Insi is focusing on oil, gas and energy, agribusiness, and mill products and mining, with priority territories in the U.S. South and Canada. The move comes as SAP's mainstream maintenance for legacy ERP ends December 31, 2027, driving what Insi expects to be the largest ERP renewal cycle North America has seen.
Aoris Investment Management Highlights SAP SE's AI Monetization Through Joule and Data Cloud
Aoris Investment Management highlighted SAP SE's AI monetization strategy in its Q2 2026 investor letter. The firm noted that SAP's systems should increase in value because AI requires accurate data, business context, and established workflows, and SAP can layer on additional services that could add 20% or more to customer spending. Examples include its Business Data Cloud, which combines SAP and non-SAP data for real-time analysis, and its Joule AI agent, which automates work using customers' existing data structures and processes. SAP SE closed at $218.68 per share on August 21, 2026, with a market capitalization of $256.39 billion.
SAP Business Data Cloud Gains Traction as AI Strategy Pillar
SAP SE's SAP Business Data Cloud is emerging as a key pillar of the company's AI strategy, with AI and the data platform featuring in more than 90% of SAP's 50 largest deals in the second quarter. SAP's current cloud backlog increased 26%, while cloud revenues grew 24% to €6.3 billion in the quarter. The company is strengthening the platform through Dremio's Apache Iceberg-native technology, Reltio's data governance, and Prior Labs' tabular AI capabilities, with management planning to monetize agentic AI through value-priced agents. SAP's new RISE with SAP and GROW with SAP offering saw strong uptake, with customers achieving up to 30% lower ERP migration costs. Shares of SAP have gained 11.7% in the past six months, underperforming the Zacks Computer and Technology sector's 18.7% appreciation, and the stock trades at a trailing 12-month price-to-earnings ratio of 28.53X versus the Zacks Computer - Software industry average of 26.83X.
SAP Issues Critical Security Patches and Earns Supply Chain Leadership Recognition
SAP issued critical security patches for its Commerce Cloud and Manufacturing Integration and Intelligence solutions, addressing severe vulnerabilities for enterprise users. The company was also named a Leader in the inaugural Gartner Magic Quadrant for Supply Chain Management Suites and recognized as a Leader in the IDC MarketScape for AI-Enabled Order Orchestration and Fulfillment Applications. These developments highlight how quickly AI-driven and cloud-heavy supply chains are evolving, with SAP's €208.3 billion market position placing it at the center of enterprise applications and business solutions. The rapid response to maximum severity issues signals the risk that security gaps pose to SAP's push for deeper customer integration and higher recurring revenue from cloud and AI offerings, while the leadership positions support the narrative that SAP is becoming more embedded in digital and autonomous supply chains.
European Markets Rise on Earnings and Economic Data
European stock markets closed higher on Friday as mostly encouraging earnings updates and decent economic data helped offset concerns about Middle East tensions. The pan European Stoxx 600 climbed 0.31%, Germany's DAX moved up 0.69%, France's CAC 40 gained 0.17%, and the UK's FTSE 100 ended 0.31% up. Weak U.S. jobs data showing a drop of 23,000 jobs in July against expectations of a 70,000 gain raised hopes the Federal Reserve will not hike interest rates soon. In corporate news, SAP, Scout24, Infineon, Siemens and BMW gained 2% to 4% in Germany, while Daimler Truck Holding shed nearly 3% despite reporting a bottom line of EUR1.457 billion, up from EUR277 million a year earlier. Allianz closed lower by about 1.6% after second-quarter earnings fell to EUR2.595 billion from EUR2.841 billion, and Munich RE dropped 1.4% even as net profit rose to €2.211 billion from €2.085 billion.
Khimji Ramdas Group cuts SAP support costs by 80% with Rimini Street
Omani conglomerate Khimji Ramdas Group has selected Rimini Support for SAP, reducing its total SAP support costs by 80% and reinvesting the savings in AI-driven innovation. The company, one of Oman's largest privately held conglomerates with over 150 years of history, relies on SAP ECC 6 to support finance, supply chain, sales, and other critical operations across its diversified portfolio. Facing pressure to migrate to SAP S/4HANA, Khimji Ramdas sought a cost-effective path that would preserve its more than 700 custom codes and allow leadership to determine its IT roadmap on business priorities rather than vendor timelines. Since moving to Rimini Street, the company has experienced zero SAP downtime over four years and has been able to fund new initiatives including a Salesforce CRM program, expanded e-commerce capabilities, and development of an in-house large language model. Rimini Street also helped the group address a complex HR and payroll compliance challenge tied to Omani labor regulations, strengthening its compliance framework and helping avoid potential fines.
Europe's established tech firms emerge as unexpected AI winners
Europe's largest established technology companies are emerging as unexpected beneficiaries of the AI boom, according to recent earnings. SAP, Capgemini, Sopra Steria, and OVHcloud have all reported stronger demand, faster growth, or upgraded outlooks as large organizations move from experimenting with artificial intelligence to deploying it across their operations. SAP's cloud backlog rose 26% at constant currencies to €22.9 billion, while Capgemini raised its annual growth target after bookings climbed 9.2% and Sopra Steria upgraded its outlook following organic growth acceleration to 5.3%. OVHcloud's public-cloud revenue rose 20.2% in its third quarter, providing early evidence that demand for European-controlled AI infrastructure is translating into commercial growth. The trend reflects the growing complexity of making AI work with existing software, data, and business processes, as well as rising demand for greater control over AI deployment in sectors such as defense, aerospace, and critical infrastructure.
SAP Launches AI Agent Hub to Tackle Governance and Agent Sprawl
SAP has launched an AI Agent Hub designed to manage and control autonomous AI agents inside large enterprises, addressing governance, security, and oversight challenges linked to rising AI agent sprawl. The hub allows customers already using SAP software for core workflows to centrally manage autonomous agents across areas such as procurement, finance, and supply chain, aligning with board-level and regulatory attention on AI accountability. The move positions SAP against competing platforms from Microsoft, Oracle, and Salesforce, reinforcing its role as the system of record for business-critical AI agents. Investors should watch for integration into large cloud or RISE with SAP deals, partnerships with third-party agents, and adoption in regulated industries as signals of the hub's strategic importance.
Teradata Appoints Bernd Leukert to Board of Directors
Teradata Corporation has appointed Bernd Leukert to its Board of Directors, effective August 1, 2026. Mr. Leukert will serve as a Class II director with a term expiring at the 2027 Annual Meeting of Stockholders and will join the Board's Nominating and Governance Committee. As part of the Board's ongoing refreshment plan, the Board will expand from nine to ten directors, and Class II directors will expand from three to four. Mr. Leukert brings more than 30 years of experience in technology and financial services, having most recently led global technology, data, and innovation initiatives at Deutsche Bank AG and previously served on the Executive Board of SAP.
Vulcan Value Partners Added to SAP Position During Second Quarter
Vulcan Value Partners increased its stake in SAP SE during the second quarter of 2026, citing strong first-quarter results and a significantly discounted share price. The investment firm highlighted that SAP's total revenue rose 12 percent and EBIT climbed 16 percent, while cloud revenue grew 27 percent and the cloud backlog expanded 25 percent. SAP also repurchased 2.6 billion euros of stock in the quarter and maintained its full-year guidance. Vulcan Value Partners views the company's deeply undervalued shares as an excellent opportunity for patient investors.
SAP Ties Cloud ERP to AI and Data in Autonomous Enterprise Push
SAP is embedding AI across its cloud ERP suite to drive customers from legacy systems into an autonomous enterprise model. The company’s Business Data Cloud generated approximately €2 billion in total contract value within its first year, and more than 90% of SAP’s 50 largest second-quarter deals included AI and that data platform. SAP reaffirmed its expectation for approximately €10 billion in 2026 free cash flow and announced a €10 billion share repurchase program running through the end of 2027, with more than 16.28 million shares already repurchased for approximately €2.6 billion as of June 30. However, second-quarter software license revenues declined 32% year over year to €0.13 billion and services revenues fell 3% to €1 billion, while acquisitions Dremio and Prior Labs are expected to reduce 2026 operating profit by more than €100 million. The stock currently carries a Zacks Rank #4 (Sell), with a Momentum Score of F and a Value Score of D, suggesting investors should separate long-term platform potential from weaker near-term valuation and estimate-revision signals.
SAP Stock Faces Investor Debate After 2026 Profit Outlook Cut and Sharp Selloff
SAP SE faces a harder investor debate after a steep share-price reset and a reduced profit outlook for 2026. The stock has fallen 29.6% year to date and 40.5% over the trailing 12 months, pulling its forward earnings multiple to 18.68 times. The company lowered its 2026 non-IFRS operating profit guidance from a range of €11.9 billion to €12.3 billion to a new range of €11.8 billion to €12.2 billion, while integration costs from Dremio and Prior Labs are expected to reduce annual profit by more than €100 million. SAP's current cloud backlog of €22.9 billion, up 27% year over year, provides visibility into future cloud revenues, but the profit cut and modest implied upside to a $184 price target from a $171.01 share price argue for selectivity. The stock carries a Zacks Rank of 4, equivalent to Sell, with a Value Score of D, Growth Score of C, Momentum Score of F, and VGM Score of D.
AUTOBACS SEVEN Marks 10 Years of System Stability and Self-Funded Innovation with Rimini Street
AUTOBACS SEVEN has marked a decade-long partnership with Rimini Street, using the support provider to stabilize its core SAP ECC and Oracle Database systems while freeing resources for innovation. The Japanese automotive aftermarket retailer, which operates roughly 1,300 domestic and 150 overseas stores, first switched to Rimini Support for SAP ECC 6 in 2016 and later expanded the engagement to include Oracle Database. The move delivered immediate 50% savings on annual support fees and up to 90% lower total cost of ownership, along with a 15-year guarantee on its SAP ECC 6 and Oracle Database environments. AUTOBACS SEVEN now plans to leverage Rimini Smart Path to fuel a planned doubling of its business, using the savings to attract AI specialists and fund new digital capabilities without disruptive system overhauls.
DCLA’s Sarat Sethi says Alphabet has many levers to toggle on AI spending
DCLA managing partner Sarat Sethi expressed concern about massive AI capital expenditure plans at tech companies outside of Alphabet, while calling Alphabet a core portfolio holding because its diversified businesses give it many levers to toggle. He pointed to YouTube, Cloud, and Gemini as reasons Alphabet can adjust spending if returns on investment do not materialize. Sethi noted a divergence between hardware and software spending, with customers holding back on hardware while continuing to invest in software and security, citing IBM and SAP commentary. He said Microsoft faces particular scrutiny and must show return on investment faster than others, as the stock is already down double digits this year. Beyond tech, Sethi highlighted a rotation into high-quality, cash-flow-generating healthcare companies such as Stryker, Thermo Fisher, and Johnson & Johnson, noting the healthcare sector has shrunk to its smallest S&P 500 weighting ever.
ASML slides on China chip tool report, Forte Bio surges on Argenx buyout
ASML dropped 8% after The Information reported China began mass production of domestically made deep ultraviolet chipmaking tools. Memory chip stocks were mixed as CXMT soared more than 466% in its Shanghai debut, while SK Hynix fell over 8%, SanDisk slid 11%, and Micron Technology lost 5%. SAP jumped more than 7% after announcing the second part of a 10 billion-euro stock buyback. Forte Biosciences rallied about 40% on a $2.2 billion cash acquisition by Argenx at $77 per share, a 40% premium to Friday's close. Brown-Forman climbed almost 4% after rejecting a $15 billion unsolicited takeover offer from Sazerac at $32 per share. Baker Hughes gained 6% on better-than-expected second-quarter earnings and revenue, while Amkor Technology fell 7% ahead of its quarterly report. D-Wave Quantum added 5% on a partnership with AT&T to use annealing quantum computers for AI, and MapLight Therapeutics plunged 68% after a Phase 2 schizophrenia trial missed its primary endpoint.
Dow edges higher while Nvidia drop weighs on Nasdaq
The Dow Jones Industrial Average edged higher at midday on July 27, while the Nasdaq Composite slipped as a decline in Nvidia shares offset optimism from cooling geopolitical tensions. The Dow was up 0.13% to 52,017.19, the S&P 500 fell 0.33% to 7,387.76, and the Nasdaq dropped 0.44% to 24,840.43. RTX Corp climbed 2.61% to $218.28 on strong second-quarter earnings, and SAP surged 7.4% to $171.79, extending last week's gains after beating earnings expectations. Reddit rose 6.7% to $171.79 on optimism ahead of its upcoming earnings report. Oil prices fell sharply, with WTI crude down almost 7% to $83.15 a barrel, following news of a pause in strikes between the U.S. and Iran, which helped lift the Dow slightly. Investors are bracing for further volatility and will be watching the Federal Reserve meeting this week, where rates are widely expected to remain unchanged, though inflationary pressures could prompt a rate increase before year-end. Renewed artificial intelligence valuation concerns also weighed on markets ahead of earnings from Microsoft, Meta Platforms, Apple, and Amazon, with investors focused on capital expenditure plans.
European stocks close higher, boosted by strong SAP results driving DAX surge
European stock markets closed higher on Friday, recovering from the sharp drop in the previous session, supported by strong corporate earnings. The STOXX 600 index closed at 644.51 points, up 0.82%, while Germany's DAX index surged 1.36% after SAP shares jumped 10% on higher-than-expected growth in cloud order backlog for the second quarter. European technology stocks rose 1.7%, rebounding from earlier declines, despite disappointing results from STMicroelectronics and BE Semiconductor. Deutsche Bank analysts warned that capital spending by tech giants is no longer supported solely by free cash flow, and low-cost open-source AI is seriously threatening business models. Meanwhile, three European Central Bank policymakers signaled that another rate hike may be necessary due to persistent inflation risks, with markets pricing in around a 70% chance of a 0.25% increase by the end of 2026. Valmet shares surged 22% after results beat expectations and the company announced plans to spin off a business, while Securitas shares fell 11% after profit missed forecasts, and Neste dropped 6.4% on a slight earnings miss.
European Stocks Rebound, Weekly Gains on SAP Surge and Financials Strength
European stock markets closed higher on the 24th. The STOXX Europe 600 Index rose 0.82% to 644.51, extending its weekly gain to 0.46%. German software giant SAP soared 9.3% after its latest quarterly cloud business backlog growth exceeded market expectations, lifting the technology sector index by 1.49%. In London, financial heavyweight HSBC gained 1.7% after agreeing to sell its Singapore life insurance business to Germany's Allianz. The mid-cap FTSE 250 Index closed 0.74% higher, while the FTSE 100 Index ended up 0.91%. Meanwhile, oil and gas stocks were weak as crude prices fell, with the STOXX Europe 600 Oil & Gas Index down 0.76%. Finland's Neste dropped 6.4% after its core profit missed estimates. In eurozone bond markets, the German 10-year bond yield fell 2.7 basis points to 3.1845%, as crude oil prices dropped below 100 dollars per barrel.
Tech Stocks Slide as Semiconductor Index Drops 6% Despite Strong Earnings
Technology stocks are under pressure as the MSCI World Semiconductor Index fell 6% in July, with investors rotating away from chipmakers despite strong earnings. EPFR Global analysts noted the long-short ratio on Nasdaq 100 futures dropped 63% over the past year to a 17-year low on July 14, signaling a shift out of technology stocks. STMicroelectronics tumbled 18% after its outlook missed forecasts, while Texas Instruments declined 3% even with an upbeat outlook. Software stocks fared better, with Dassault Systemes rising on in-line results and SAP advancing after cloud revenue matched expectations. JPMorgan strategists recommended buying a call spread on the Magnificent Seven basket, citing heavily reduced positioning that could support the group if earnings hold up.
SAP lifts Q2 earnings on cloud demand but trims profit outlook after acquisitions
SAP reported second-quarter 2026 non-IFRS earnings per share of €1.59, up 6% year over year, while total non-IFRS revenue rose 9% to €9.9 billion, driven by a 22% jump in cloud revenue to €6.3 billion. The company lowered its full-year non-IFRS operating profit guidance to €11.8–€12.2 billion from €11.9–€12.3 billion, citing a dilutive impact exceeding €100 million from the acquisitions of Dremio and Prior Labs. Cloud backlog grew 27% to €22.9 billion, and SAP reaffirmed its 2026 targets for cloud revenue, cloud and software revenue, and free cash flow of approximately €10 billion. Non-IFRS cloud gross margin slipped 0.6 percentage points to 74.6%, while operating cash flow rose 22% to €3.2 billion. The company also noted that its outlook assumes a near-term de-escalation of geopolitical tensions in the Middle East.
Intel, Oracle, and Amkor lead premarket movers on earnings and deal news
Several stocks made notable premarket moves following earnings reports and major agreements. Intel rallied 4% after posting its sharpest quarterly revenue growth in nearly 15 years, with Q2 revenue of $16.1 billion and adjusted earnings of 42 cents per share beating analyst expectations. Oracle rose nearly 3% after signing a 10-year, nearly $7 billion software agreement with the Pentagon for on-premises military use. Amkor Technology surged more than 11% on a multiyear $1.5 billion deal with Nvidia to develop advanced semiconductor packaging and testing for artificial intelligence. On the downside, American Express dipped 3% after missing revenue estimates with $19.64 billion versus the $19.71 billion consensus, while Deckers Outdoor slid 3% as Hoka and Ugg brand revenues fell short of Street expectations. Other movers included Tenet Healthcare jumping over 16% on a strong earnings beat, SAP gaining 5% on 27% cloud backlog growth to 22.9 billion euros, and MaxLinear tumbling more than 9% despite better-than-expected results, having been up over 400% in 2026 heading into the report.
European Shares Edge Higher as Brent Falls Below $100
European stocks rebounded on Friday after their steepest single-day loss in over two weeks, with the pan-European STOXX 600 rising half a percent to 642.32. The recovery came as Brent crude futures slumped nearly 4 percent below $97 a barrel, having topped $100 on Thursday following Houthi attacks on tankers in the Red Sea. The British pound strengthened after official data showed UK retail sales unexpectedly grew 1.0 percent in June, beating forecasts of a 0.3 percent decline. Among individual movers, SAP jumped 6 percent on higher quarterly revenue, while Securitas plummeted 11 percent after reporting lower-than-expected second-quarter core profit.
Safety Insurance, Amkor, SAP, and Intel lead Friday's biggest stock movers
Stock futures edged higher Friday as investors weighed Middle East tensions against a busy week of tech earnings. Safety Insurance shares surged 42% after Mapfre agreed to acquire the insurer in an all-cash deal valued at approximately $1.54 billion, offering $105 per share, a 44% premium. Amkor Technology jumped 9% on a multi-year partnership with Nvidia to develop advanced semiconductor packaging for AI platforms, with Nvidia prepaying to expand Amkor's Arizona capacity. SAP gained 6% after beating second-quarter earnings estimates, reporting 24% cloud revenue growth, and raising its full-year and 2026 outlooks. Intel climbed 3% as second-quarter revenue rose 25% to $16.1 billion, topping expectations, and the chipmaker issued third-quarter guidance above consensus. On the losing side, MaxLinear fell 10% despite beating estimates and issuing a strong outlook, while Deckers Outdoor slipped 3% even after surpassing earnings and posting its first billion-dollar revenue quarter.
SAP CFO says AI must move beyond chatbot low-hanging fruit before seeing returns
SAP's finance chief said on Thursday that artificial intelligence in enterprise software must move beyond chatbots and coding tools into more complex business processes, where clean data, reliability and cost control matter more than access to the most powerful model. CFO Dominik Asam told reporters after SAP's second-quarter results that the lion's share of AI token consumption today was spent in low-hanging fruits like coding assistants and chatbots, where AI's hallucinations matter less because the output carries limited risk if it fails. But applying AI to finance, supply chain or other core business processes is harder because errors carry over multiple steps, increasing risk against compliance standards. Asam said the high-hanging fruit of AI is less about applying a generic plug-and-play large language model across a company than about building systems around specific businesses, which requires companies to make their own data usable and governed. He added that the most advanced model is not always the right one, and in practice companies will use the cheapest reliable tool that can deliver the required outcome safely.
Intel rallies 9% after sharpest quarterly revenue growth in nearly 15 years
Intel rallied 9% in extended trading after reporting its sharpest quarterly revenue growth in nearly 15 years, with second-quarter revenue hitting $16.1 billion, 25% above the year-earlier period, and adjusted earnings per share of 42 cents beating analyst expectations. Deckers Outdoor slid 3% as first-quarter revenue of $1.02 billion met consensus but Hoka and Ugg brand sales fell short of Street forecasts. Robert Half fell around 9% after second-quarter earnings of 26 cents per share matched estimates while revenue of $1.34 billion just topped the $1.32 billion consensus. Boston Beer added 2% after second-quarter revenue of $568.3 million narrowly beat the FactSet consensus of $566.7 million and the company reaffirmed full-year earnings guidance of $8.50 to $10.50 per share. SAP rose 3% as its cloud backlog grew 27% year over year to 22.9 billion euros and revenue of 9.88 billion euros edged past an LSEG forecast of 9.86 billion euros. Advanced Micro Devices jumped more than 2% after projecting at its Advancing AI presentation that its server CPU market will grow over 50% to $200 billion by 2030 and its AI accelerator market will hit $1.4 trillion by 2030.
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