SAP Acquires Dremio to Enhance AI Capabilities
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy SAP?
Source: PRnewswire
- Acquisition Announcement: SAP has announced its acquisition of Dremio, a high-performance data lakehouse platform designed to accelerate agentic AI and enhance the SAP Business Data Cloud's ability to effectively handle real-time analytical and AI workloads.
- Integration Benefits: Dremio will eliminate data fragmentation and integration friction, enabling seamless integration of SAP and non-SAP data, thereby enhancing the value delivery capability of enterprises in AI projects while reducing costs.
- Technological Innovation: By integrating the Dremio platform with SAP Business Data Cloud, SAP will achieve an Apache Iceberg-native enterprise lakehouse that unifies SAP and non-SAP data, improving real-time transaction and operational performance.
- Future Outlook: The transaction is expected to close in Q3 2026, with SAP committed to continuing investments in Dremio's open-source projects, further driving the economic benefits and intelligence of enterprise analytics.
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Analyst Views on SAP
Wall Street analysts forecast SAP stock price to rise
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 174.710
Low
30.28
Averages
297.01
High
401.93
Current: 174.710
Low
30.28
Averages
297.01
High
401.93
About SAP
SAP SE (SAP) is a Germany-based application software company. The Company operates through two segments Applications, Technology & Support (ATS) segment and its Core Services segment. The ATS segment covers the Company’s integrated product portfolio and includes cloud subscription offerings, support services, and training solutions. It also encompasses activities related to operating cloud technologies and delivering customer support associated with its software products. The Core Services segment complements the Company’s product portfolio by delivering consulting and premium support services to assist customers in adopting its innovations. Revenue in this segment is primarily derived from professional services and enhanced support offerings, while costs arise from the execution of these service activities.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Executive Participation: CEO Christian Klein will participate in a Fireside Chat at the BNP Paribas Exane CEO Conference on June 3, 2026, further demonstrating the leadership's commitment to transparency and communication with the market.
- Webcast Availability: The event will be webcast, and a replay will be available on the SAP Investor Relations website, ensuring that investors unable to attend in person can still access crucial information, thereby improving information accessibility.
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- Webcast Availability: The conference will be webcast live, with a replay available shortly after the event, ensuring that investors who cannot attend in real-time can still access key information, thereby broadening the reach of information dissemination.
- Investor Relations Engagement: SAP encourages investors to contact the Investor Relations team via email or phone to ensure they receive timely updates on company developments and financial information, thereby strengthening communication and connection between the company and its investors.
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- Sales Forecast Downgrade: Clorox now forecasts a 9% decline in organic sales for fiscal 2026, down from the previous guidance of 5% to 9%, reflecting the operational challenges faced amid intense competition and promotional pressures.
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- Data Readiness for AI: SAP's CTO, Philipp Herzig, emphasized that the bottleneck in enterprise AI lies in data readiness, and Dremio's high-performance data lakehouse platform will eliminate this barrier, thereby improving customer efficiency and effectiveness in AI agent applications.
- Acquisition of Prior Labs: SAP also announced the acquisition of Prior Labs, a provider of Tabular Foundation Models, committing over €1 billion in the next four years to scale it into a globally leading AI lab for structured data, further advancing AI technology.
- Strategic Investment: This acquisition not only showcases SAP's ambitions in the AI sector but also indicates its commitment to enhancing product competitiveness through the integration of advanced data processing capabilities, which is expected to positively impact future business growth.
See More
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- Acquisition of Prior Labs: SAP SE is acquiring Prior Labs to expand its AI initiatives, committing over €1 billion in the next four years to develop it into a globally leading frontier AI lab focused on structured data that drives business operations worldwide.
- Commitment to Independent Operation: Prior Labs will continue to operate as an independent entity, a strategy that not only helps maintain its innovative capabilities but also enhances SAP's competitiveness in the AI sector, further solidifying the company's leadership in digital transformation.
- Impact of Open-Source Tool: Prior Labs' TabPFN tool has achieved over 3 million downloads, becoming a widely adopted open-source tool that supports a dynamic developer ecosystem, which will provide SAP with additional developer resources and market opportunities.
- Pending Regulatory Approval: The transaction is still pending regulatory approval, and while the terms of the deal remain undisclosed, SAP's strategic investment underscores its long-term commitment to the AI sector, which is expected to positively impact future business growth.
See More
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- Independent Operation Model: Prior Labs will continue to operate as an independent entity, a strategy that not only ensures research agility but also leverages SAP's resources and customer network to drive innovation and market penetration in structured data AI.
- Significant Technical Advantage: Prior Labs' TabPFN-2.6 model excels in the TabArena benchmark, achieving accuracy comparable to a four-hour automated machine learning pipeline with minimal complexity, thus providing SAP customers with more efficient business decision-making support.
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See More
