Markets
SAP Goes Into Q2 at a 52-Week Low Because Its Customers Cannot Get AI Agents Into Their ERP
Ahead of SAP's Q2 2026 results (July 23, after the US close), UBS flagged that large SAP customers are adopting AI agents more slowly than expected because integrating AI into complex ERP is proving harder than modeled — directly slowing monetization of the Joule strategy. The disconnect is stark: cloud backlog sits at a record €77.3B (+30% cc) and Q1 cloud revenue grew 27% cc, yet the stock hovers near a year low and management has already warned of decelerating current cloud backlog growth. This is the counterweight to the ServiceNow print — agentic AI monetizes fastest where the system of record is already API-shaped, and slowest where it is a twenty-year-old customization layer.
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