SAP stock slumps as UBS downgrades stock on ‘slow’ move into AI

The move followed a UBS analyst’s criticism of SAP’s pace in bringing artificial-intelligence-based tools to customers, making the stock the worst-performing large-cap European stock on Wednesday. The report specifically targeted the speed of the AI rollout rather than citing a reported deterioration in current financial results.

SAP generated $36.8B of revenue in fiscal 2025, up 7.7% year over year, with a 72.9% gross margin, a 19.9% net margin and $6.10 of diluted EPS. Those figures provide a substantial operating base, but the downgrade links future enthusiasm for the shares to the company’s ability to turn its AI product effort into visible customer adoption and growth.

The next read-through is SAP’s response to the criticism and its next scheduled earnings update. The key open points are the pace of AI-related product deployment, customer uptake and whether management changes its outlook or provides more detail on the contribution from the tools.