On September 1, SAP SE fell 3.15% in pre-market trading, trading at 213.87 USD/share, with turnover of approximately $4.107 million. The decline reflects continued pressure from a recent UBS downgrade and a downward revision to full-year profit guidance.

UBS downgraded SAP from Buy to Neutral, citing the company's slow agentic AI delivery pace, which has limited monetization opportunities and raised the risk of customers pursuing do-it-yourself AI adoption. While UBS raised its target price from 164 euros to 201 euros, analysts flagged a high likelihood of cloud backlog growth deceleration in the second half and noted that investor sentiment remains fragile. Cloud gross margins before stock-based compensation fell for the first time since 2021, with rising AI token costs adding further pressure on R&D expenses.

Additionally, SAP trimmed its fiscal year EBIT guidance by 100 million euros to a range of 11.8 billion to 12.2 billion euros, driven by acquisition dilution from Dremio and Prior Labs. The stock has now retreated approximately 21% from its 52-week high of 242 euros, entering what analysts describe as a high-level consolidation phase.

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