SAP Wraps Up Dremio Acquisition as Stock Attempts a Fragile Recovery Against a 46% Slide
Published on 07/08/2026 at 09:26 | Redaktion boerse-global.de
SAP has closed its purchase of Dremio, the open?lakehouse platform specialist, providing a fresh tailwind for the software giant’s AI strategy even as the stock struggles to shake off a prolonged sell?off. The deal, completed on Monday, allows SAP customers to analyse data without having to physically move it first, thanks to an architecture built on open standards such as Apache Polaris. The technology upgrade is designed to enable seamless workflows for autonomous AI agents – a central piece of the “Agentic AI” vision that SAP has been marketing to corporate clients.
The announcement helped lift SAP shares on Tuesday, though the exact extent of the gain varied across market reports. One put the stock at €144.14, a 2.91% advance that made it the best performer in the Euro STOXX 50, while another indicated a more modest 1.65% rise to €143.20. Either way, the move offers only a small respite from a brutal downturn that has seen the equity lose nearly half its value since July 2025. At its 52?week high of €266.00 on 9 July last year, the stock has since fallen 46.17%, leaving it still 9.48% above the recent trough of €130.80 reached on 25 June 2026.
A Strategic Pivot, but the Market Demands Hard Proof
The Dremio closure comes at a time when investors are increasingly sceptical about the return on AI spending. An analysis by UBS found that roughly 60% of companies now scrutinise their AI budgets strictly for profitability, favouring integrated platform solutions over raw computing power. SAP’s push into “Business AI” and the creation of an Autonomous Enterprise suite is meant to address that shift, but the market has so far delivered a lukewarm verdict. On 1 July 2026, the company reorganised its board, splitting the Business AI Platform and Autonomous Suite into separate executive departments – a move intended to demonstrate agility, but one that analysts have described as highlighting internal complexity.
The cloud backlog has grown to €21.9 billion, a solid operational signal, yet the share price continues to trail. Year?to?date the stock is down 29.11%, and over the past twelve months it has fallen 44.94%. The disconnect between operating performance and valuation is the central tension weighing on the stock.
Should investors sell immediately? Or is it worth buying SAP?
The 2027 Deadline Sharpens the Focus
Adding urgency is the looming end of mainstream support for SAP ECC on 31 December 2027. With roughly 18 months left, customers are under pressure to migrate to S/4HANA, creating a near?guaranteed revenue pipeline for SAP. But the timeline is a double?edged sword: every delay in transformation projects or shortage of consulting capacity fuels fresh doubts about the company’s ability to execute the cloud transition on schedule. The stock’s distance from its 200?day moving average of €180.16 – a gap of minus 20.51% – underscores that the bear market is far from over.
Partnerships and Technical Glimmers
On the ground, SAP is trying to accelerate the migration through its partner ecosystem. At the Transformation World conference in Heidelberg, SNP and Palantir announced a strategic collaboration to help SAP customers modernise their system landscapes using new software tools that automate complex data migrations. Clean, consistent data is a prerequisite for deploying AI profitably, and SAP is betting that easier migration paths will help unlock that value.
Technically, the stock’s relative strength index now stands at 51.6 – a neutral reading that signals neither panic nor euphoria. The annualised volatility of 46.04%, however, indicates that nerves remain frayed. Tuesday’s move could be the start of a bottoming process, but the path to recovery is steep. With a market capitalisation of €163.2 billion, SAP still commands a hefty valuation, yet the gap between its grand ambitions and the market’s expectations has never been wider.
SAP at a turning point? This analysis reveals what investors need to know now.
The Earnings Test Ahead
The broader tech sector has seen a rotation away from hardware and towards software, a tailwind that helped SAP’s recent rally. But the real test will come later this month, when heavyweight US tech companies report earnings. Those quarterly results will show whether the rotation is durable or merely a temporary shift. For SAP, the Dremio acquisition has bolstered the technology base, but the ultimate verdict – on both the stock and the AI strategy – will depend on whether the 2027 migration pipeline turns into tangible revenue in time to prove that the autonomous enterprise is more than a vision.
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