AI, Sustainability, and the New Blueprint for Supply Chain Resilience in 2026

As we enter 2026, volatility and uncertainty have accelerated rather than eased, which puts additional pressure on global supply chains. At the same time, we are hearing from so many of our customers that technology is no longer just part of the supply chain story, but the solution to some of its toughest challenges. From geopolitical uncertainty to rising customer expectations, supply chain leaders are facing mounting pressure to deliver resilience, agility, and sustainability. The good news is that innovations like agentic AI and advanced analytics are no longer theoretical; they’re transforming workflows today, at scale.

The past few years have taught us that disruption is the new normal. Whether it’s global conflicts, raw material shortages, or sudden demand spikes, supply chains need to pivot faster than ever. That’s why this year, the conversation isn’t about incremental improvements—it’s about reimagining processes with intelligent technologies that anticipate, adapt, and act autonomously.

From complexity to clarity: how agentic AI changes the game

Agentic AI is reshaping supply chains, and we’re already seeing real value in practice:

Listen to the Future of Supply Chain podcast interview to learn more
  • Supplier onboarding in hours, not weeks: Companies can drive substantial efficiencies by collaborating more deeply with their suppliers, such as material or logistics providers. AI agents autonomously validate supplier credentials, check compliance, and integrate them into your network, cutting onboarding time by up to 50%.
  • Predictive maintenance and service that prevents downtime: Instead of reacting to failures, AI agents monitor equipment health and trigger proactive service, reducing unplanned outages by 30%.
  • Autonomous disruption handling: When short-term disruptions or opportunities arise to demand or supply levels, AI agents evaluate events and alerts, model scenarios, and drive action while keeping humans in the loop. If critical inventory needs to be shifted for example, agents place orders automatically, optimizing stock levels and reducing lead times by 25%.

These aren’t distant possibilities—they’re real scenarios already piloted by SAP Supply Chain customers. AI isn’t replacing people; its amplifying human decision-making, freeing teams to focus on strategy rather than firefighting.

Why this matters: analyst rankings tell the story

SAP solutions underpin strategies that earned recognition in major 2025 analyst reports, including:

These accolades aren’t just badges of honor. They validate the trust our customers and partners place in SAP and the impact we deliver together. They also reinforce a critical truth: supply chain excellence is now a boardroom priority.

Sustainability: from obligation to advantage

Sustainability isn’t just a compliance checkbox; it’s a competitive edge. More than 25% of global emissions are already taxed or regulated by trading systems. Circularity and carbon accountability have become core KPIs for supply chain leaders because responsible practices deliver measurable benefits. Meeting environmental, social, and governance (ESG) standards lowers regulatory and reputational risk, while optimizing logistics for lower emissions often translates into fewer miles traveled and reduced fuel costs. At the same time, customers and investors increasingly favor brands with transparent sustainability metrics, making it a powerful differentiator in the market.

SAP solutions help companies measure emissions, enable ESG compliance, and embed sustainability data deep into operational decision-making for procurement, logistics, dispatching, and planning. This turns sustainability into a lever for growth rather than a reporting exercise. In fact, companies recognized in Gartner’s rankings often cite sustainability as a driver of resilience and profitability. When businesses can prove carbon accountability and circularity, they’re not just meeting regulations, they’re building trust and unlocking new market opportunities.

Looking ahead: our 2026 roadmaps

In 2026, our priorities center on enabling supply chains that are more intelligent, more connected, and more resilient. We are deepening our investment in agentic AI to support end-to-end value streams such as integrated business planning, sales and operations execution, digital manufacturing, and logistics execution. The goal is to bring AI directly into processes where decisions are made so planning becomes more predictive and execution becomes more automated. Over time, organizations will entirely redesign workflows and decision-making processes for the true step-change in agentic AI.

We are also advancing our capabilities in supply chain orchestration. As global supply chains operate increasingly across networks, companies need a coordinated layer that unifies planning, procurement, manufacturing, and logistics with partner ecosystems. This year, we will continue strengthening how our solutions identify risks in the n-tier network of complex supply chains by synchronizing data, prescribing decisions and actions across the enterprise and the broader network, and helping customers manage disruptions end‑to‑end with greater speed and clarity.

Finally, we remain focused on data excellence. Reliable, harmonized data is essential for AI-driven decisions and for orchestrating the supply chain. In 2026, we are continuing to enhance master data consistency, improve network-wide data quality, and support AI‑ready data models that help ensure our customers can trust and operationalize their insights at scale.

Together, these areas form the backbone of the innovations we are delivering this year, with a clear aim of helping customers move from reactive operations to intelligent, proactive orchestration. But technology alone isn’t enough. The real magic happens when we collaborate with our customers and our partners, turning complexity into opportunity.

The takeaway: 2026 is about action at scale

The supply chain landscape is evolving faster than ever. Agentic AI, sustainability, and intelligent automation aren’t optional, but essential. Companies that embrace these technologies to truly evolve how they operate and take even complex decisions will lead in resilience, efficiency, and responsibility. Those that hesitate risk falling behind in a world where adaptability is the ultimate competitive advantage.

Don’t wait for disruption to force your hand. Build the capabilities now that will carry you through uncertainty and position you for growth. Learn more about SAP’s AI-powered solutions here.


Dominik Metzger is president and chief product officer of SAP Supply Chain Management.

Get the latest SAP news delivered to your inbox once a week

*IDC MarketScape: Worldwide Multi-Enterprise Supply Chain Commerce Network 2025 Vendor Assessment, November 2025, IDC #US53010225
**IDC MarketScape: Worldwide AI-Enabled Asset-Intensive Enterprise Asset Management Applications 2025–2026 Vendor Assessment, December 2025, IDC ID # US52977525
***IDC Magic Quadrant for Cloud ERP for Product-Centric Enterprises, October 2025, IDC ID# G00826212

SAP Is a Leader in the 2025 Gartner® Magic Quadrant™ for Configure, Price, and Quote Application Suites

We are pleased to share that for the eighth consecutive year, Gartner has named SAP a Leader in its Magic Quadrant for Configure, Price, and Quote Application Suites. 

SAP CPQ enables organizations—however complex, across however many channels, and regardless of which CRM they run—to produce quick and accurate quotes, accommodating the most advanced configuration and pricing requirements, resulting in a better sales experience and faster sales cycles.

2025 Gartner Magic Quadrant for CPQ Application Suites; SAP appears in upper right quadrant
This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from SAP. Click to enlarge.
2025 Gartner Magic Quadrant for Configure, Price, and Quote Application Suites

Gartner evaluated 16 vendors and named SAP a Leader based on our Ability to Execute and Completeness of Vision. We believe this recognition serves as an acknowledgment of SAP’s ongoing commitment to providing customers with a CPQ solution that can meet and exceed their needs. 

SAP CPQ is an essential component of the SAP product portfolio that help automate the quote-to-cash process, which enables organizations to convert sales opportunities into profitable repeat customers. SAP customers can transform to “everything-as-a-service” with innovative revenue models, quickly adapt to market changes, support multiple sales channels, and support regulatory compliance with end-to-end automation.  

Our customers are the reason we do this, and they participated in the Gartner Peer Insights process by providing reviews that included: 

  • “It just makes the whole sales cycle move faster.”
  • “It was relatively simple to onboard when I was a new user” platforms and creating value for customer.”
  • “We had a very positive experience with SAP, the platform is scalable, stable.”
  • “An intuitive user interface that simplifies configuration, robust integration capabilities. Powerful customization options.”
  • “SAP CPQ is amazingly stable and consistent product with the ability to connect with different platforms and creating value for customer.”

Customer case studies provide descriptions of specific value. For example, EXFO Inc, has increased the number of quotes created per month by 70 percent. 

“You basically give the salesperson one to two days of their week back by using SAP CPQ,” noted Dominic Kasten, director of Sales Technologies for Cleaver-Brooks. “When you give time back to salespeople, you are encouraging them to sell solutions to customers instead of just reacting to specifications.”

Hear from other customers and learn more about how SAP helps to automate quote-to-cash with SAP CPQ, SAP Billing and Revenue Innovation Management, SAP Subscription Billing, and SAP S/4HANA Cloud at sap.com.


David Imbert is head of Product Marketing for Finance at SAP. 
Lawrence Martin is chief product officer for Finance at SAP. 

Get news and stories delivered each week via the SAP News Center newsletter

Gartner, Magic Quadrant for Configure, Price, and Quote Application Suites, Luke Tipping, Mark Lewis, January 22, 2026 
Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose.
Gartner and Magic Quadrant are a trademark of Gartner, Inc., and/or its affiliates. This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from SAP. 

SAP Introduces New Capabilities to Advance Pay Equity and Help Ensure EU Pay Transparency Compliance

It’s no secret that organizations with fair and transparent pay practices earn greater employee trust and a stronger brand reputation. According to the latest Mercer Global Pay Transparency Report, when prospective candidates and current employees have clear visibility into how compensation decisions are made, organizations typically see increased engagement, enhanced productivity, and improved talent attraction and retention.

To date, many employers have approached pay equity at their own pace, but a new era is beginning, one that will redefine pay practices and workplace culture for organizations across the European Union (EU). Set to take effect across EU Member States in 2026, the EU Pay Transparency Directive (EU Directive 2023/970) strengthens the principle of “equal pay for equal work or work of equal value” as enshrined in EU law, requiring employers to adopt transparent pay practices and close gender pay gaps or face potential legal and financial consequences.

SAP SuccessFactors HCM can provide a single source of truth for the critical data-driven insights needed to help organizations meet EU pay transparency requirements. Today, SAP is announcing new capabilities that can make it even easier for organizations to meet their requirements across EU countries.

Launching in 1H 2026, EU Pay Transparency Insights is a new capability within the People Intelligence package in SAP Business Data Cloud (SAP BDC), an intelligent, AI-powered application that can deliver ready-to-use, actionable insights to help leaders make more informed decisions. EU Pay Transparency Insights enables organizations to analyze compensation, identify outliers, and address pay gaps, helping them meet reporting requirements while unlocking the workforce and business performance benefits of achieving true pay equity.

Make your workforce unstoppable with a flexible set of AI-powered applications that bring your people, data, and processes together

Three requirements every employer must meet—and how SAP SuccessFactors HCM supports them

The EU Pay Transparency Directive represents one of the most sweeping changes to workplace compensation in decades. To meet its requirements, organizations will need to reassess their current HR data management capabilities and processes and begin planning now. As countries move toward putting the directive into law by June 2026, some obligations may already apply, with others set to take effect as soon as national laws are enacted. And because pay gap reporting deadlines vary by organization size—starting in 2027 for employers with 150 or more employees and based on 2026 workforce data—organizations must act now to be ready. 

SAP SuccessFactors HCM is uniquely positioned to support organizations in addressing the three key requirements outlined in the directive—gender pay gap reporting, employee pay transparency, and candidate pay transparency—with several capabilities already available today and advanced analytics for gender pay gap reporting delivered through EU Pay Transparency Insights in 1H 2026.

1. Gender pay gap reporting

Once national laws are in place, employers will be required to disclose their gender pay gaps on a predefined schedule, and any gap of 5% or more must be explained or mitigated with a joint pay assessment. With EU Pay Transparency Insights within People Intelligence in SAP BDC, organizations will be able to access rich workforce insights to analyze compensation and identify drivers behind pay gaps, giving them the information they need to generate actionable reports with a complete view of workforce equity in a single place.

Screenshot of outlier analysis and compliance reporting charts in EU Pay Transparency Insights

2. Employee pay transparency

In accordance with the directive, employees have the right to request information on average pay levels by gender for comparable roles. By leveraging the powerful document generation capabilities in SAP SuccessFactors HCM, employers can provide employees with a self-service experience to display individual pay transparency statements directly from the People Profile in SAP SuccessFactors Employee Central. These statements can give clear insight into the employee’s annual pay and the average pay of the same worker category broken down by gender.

Screenshot showing document generation of individual pay transparency information reports

3. Candidate pay transparency

Employers will be required to disclose pay ranges in job advertisements or before interviews. They will also be prohibited from asking applicants about salary history. SAP SuccessFactors solutions help enhance pay transparency by enabling employers to display pay ranges directly within job postings published through SAP’s recruiting solutions, including SAP SuccessFactors Recruiting and SmartRecruiters.

Screenshot showing compensation range transparency in job posting

In addition to these SAP SuccessFactors capabilities, SAP continues to work with our vast partner ecosystem to support pay parity and pay transparency efforts.

An opportunity to lead with accountability

The EU Pay Transparency Directive sets a new baseline for accountability in how organizations manage and disclose pay. By preparing early and partnering with SAP, organizations can deliver transparent compensation insights, empowering employees with a clear view of their total rewards and career journey and supporting HR professionals in making consistent and measurable decisions with confidence. With continuous innovation and trusted localized expertise, SAP helps organizations stay on top of changes and build a sustainable, employee-centered approach to pay equity across the EU.

Learn more about how SAP SuccessFactors HCM can help your organization stay compliant with the EU Pay Transparency Directive in the “Ready on Day One: Confidently Navigate the EU Pay Transparency Directive” webinar.


Dan Beck is general manager and chief product officer for SAP SuccessFactors.

Sign up to receive weekly news highlights from the SAP News Center

At Davos 2026, Sustainability Was Everywhere, Just Not in the Headlines

Sustainability rarely took center stage at Davos this year. Instead, it quietly delivered by playing an implicit and influential role in most conversations throughout the week.

The major topics of geopolitical risk, artificial intelligence, and economic uncertainty consistently circled back to environmental exposure and long-term resilience, pointing to a broader shift: sustainability is becoming less of a separate agenda item and more an underlying consideration in enterprise risk and strategy.

For leaders looking to shape the next phase of business, two major and consequential themes emerged.

1. AI is a sustainability enabler with responsibilities

Artificial intelligence was central to many Davos discussions this year, including those touching on sustainability. The focus was less on experimentation and more on how AI is already influencing operational and strategic decisions.

In several sessions, leaders pointed to practical applications where AI, combined with sustainability and operational data, is helping organizations to reduce waste, improve resource efficiency, and better anticipate environmental risks.

At the same time, there was no lack of recognition that AI brings new challenges. Its growing energy and water requirements, along with questions around governance, transparency, and equity, featured prominently in discussions. Leaders emphasized the fact that AI’s sustainability value depends heavily on how well it is integrated into existing business systems and decision-making processes, rather than deployed as a standalone technology. This was also underscored by broader analysis showing that emerging regulatory frameworks are struggling to keep pace with AI’s environmental footprint and governance needs. 

For many organizations, the focus shifted towards how responsible AI can support sustainability objectives while remaining aligned with enterprise governance and financial oversight.

2. Water is key to societal and economic stability

One of the most prominent sustainability topics at Davos 2026 was water. Across both formal and informal sessions, leaders discussed water and ocean health as a foundational element to stable societies, economies, and business continuity.

Much of the conversation focused on the growing gap between economic dependence on water and the level of investment dedicated to protecting and managing water systems. With a significant share of global GDP expected to be exposed to high water stress in the coming decades, participants highlighted the operational and financial implications for supply chains, production facilities, and communities. According to the World Economic Forum, 31% of global GDP could be located in regions of high water stress by 2050, underscoring the urgency of rethinking water investment and risk. 

To this end, new collaborative initiatives were announced during the week, including efforts aimed at integrating water considerations more directly into corporate strategies and strengthening ocean stewardship across industries. For example:

  • Early-stage innovators were selected at Davos to boost water resilience across infrastructure, industry, and agriculture systems. 
  • Public-private collaboration initiatives were launched to accelerate water finance and investment ahead of the 2026 UN Water Conference. 
  • Research and alliance work was directed at bridging the €6.5 trillion global water infrastructure gap, and commitments were made to mobilize private capital and improve water resilience strategies. 

These discussions signaled a move away from viewing water solely through a sustainability reporting lens and toward understanding it as a material risk and resilience issue for businesses.

What can business leaders take away?

While AI and water dominated the headlines at this annual meeting, sustainability quietly permeated most strategy meetings, with three takeaways arising as directional signals for leaders looking to build resilience into their business:

Sustainability is increasingly understood as financial risk

One of the clearest signals from Davos was the extent to which sustainability risks are now discussed in financial terms.

The World Economic Forum’s Global Risks Report 2026, released shortly before the meeting, reinforced this view by ranking environmental risks (including extreme weather and biodiversity loss) and critical changes to Earth systems among the most severe long-term global threats. The same report also highlighted that adverse outcomes from artificial intelligence are rising sharply in long-horizon risk rankings, reflecting growing concern about both technological and environmental disruption. 

While geopolitical and economic issues dominated short-term attention at the annual meeting, environmental risks were consistently framed as persistent factors shaping long-term planning and resilience strategies.

Build a more compliant, sustainable, and resilient business with SAP Sustainability solutions

Furthermore, the role of the CFO is also evolving to meet sustainability requirements, including reporting non-financial KPIs, managing plastic and carbon taxes, steering the business, and aligning business decisions with carbon and environmental cost trade-offs. SAP’s carbon accounting and management solutions can provide the capabilities needed to address CFO sustainability priorities.

As SAP Chief Sustainability & Commercial Officer Sophia Mendelsohn noted during the week, “Sustainability remains firmly planted in both the Davos agenda and the minds of the CEO and CFO. The reality of climate change persists—both its risks and opportunities, and they are already showing up on the balance sheet.

For many executives, this framing reflects how sustainability considerations are increasingly influencing investment decisions, insurance strategies, and assessments of long-term enterprise value.

The focus is shifting from ambition to execution

Davos discussions also underscored a growing emphasis on execution. While sustainability remains firmly planted in the C-suite agenda, many leaders acknowledged a gap between ambition and implementation.

Despite years of commitments and target-setting, fewer than one in five companies have implemented climate adaptation and mitigation measures at scale. This is a persistent action gap that helps explain why sustainability strategies are now evaluated more closely through the lens of financial feasibility, operational readiness, and data credibility.

In an environment where sustainability investments compete with other priorities, including AI and digital infrastructure, leaders emphasized the need for clear business cases and measurable outcomes. Sustainability initiatives that can demonstrate value creation and risk reduction are more likely to secure long-term support.

Integration decides whether sustainability insights lead to action

Data availability is no longer the primary challenge for most organizations. The tools to measure emissions, water use, climate exposure, and supplier impacts are widely accessible. What remains difficult is turning that information into decisions.

Across Davos, there was broad agreement that sustainability data needs to be integrated into core business systems for planning, procurement, asset management, and finance. When sustainability information sits outside these systems, it tends to inform reporting rather than operational or strategic action. When it is embedded, it can support more forward-looking decisions around resilience, investment, and supply chain design.

This shift toward integration reflects a broader understanding that sustainability efforts are most effective when they are aligned with how the business already operates.

SAP’s ERP-centric, AI-enabled approach connects business and sustainability data to help give full visibility across a company’s value chain, enabling it to align business objectives with sustainability priorities across areas like material choice, efficient transport and distribution, improved asset performance, and reduced carbon impact.

Davos 2026 clearly reflected a maturing phase of the sustainability conversation, one that is less about visibility and increasingly about how organizations can confidently prepare for the decade ahead.

For business leaders shaping sustainability strategies, there is a pressing need to make plans financially grounded, operationally integrated, and supported by reliable data.

Enterprise systems play an important role in this transition. When sustainability information is connected across business functions, leaders gain clearer insight into risk and opportunity, supporting more resilient and informed decision-making.


Monica Molesag is global head of Sustainability Communications at SAP.

Get the latest SAP news delivered to your inbox once a week

From Intent to Impact: How Supply Chain Leaders Are Driving Transformation

Supply chain transformation today is a balancing act between ambition and execution. Leaders are being asked to deliver growth, improve resilience, adopt AI, and meet rising customer and regulatory expectations, all while keeping operations running.

At NASCES25, I moderated a roundtable with supply chain and transformation leaders from Toyota, L’Oréal, Owens Corning, Ecolab, American Airlines, and Bayer. Across industries, one theme was clear: transformation succeeds when it is grounded in clarity, centered on people, and focused on customer impact.

If you can’t name the problem, don’t buy the technology

The most effective transformations begin with a clear articulation of the problem to be solved, the value at stake, and the outcomes expected. Too often, organizations chase new technology simply because it is available or gaining attention, not because it is tied to a specific business need. However, technologies like AI only deliver value when applied to well-defined business challenges.

Tying initiatives to measurable outcomes helps secure leadership alignment and supports change management. Clarity creates focus and helps teams understand why transformation matters. At its foundation, successful transformation rests on three pillars: people, process, and technology, all powered by high-quality data.

AI is only as smart as the network behind it

As supply chains become more complex, multi-tier visibility has moved from a nice-to-have to a requirement. Many of the biggest risks today, including regulatory exposure, disruptions, and cost volatility, originate deep in the supply chain, often beyond direct supplier relationships.

AI has emerged as a powerful enabler, but only when supported by trusted, shared data. More than half of the data needed to drive intelligent supply chains sits outside an organization’s four walls. Without visibility across trading partners, AI’s impact is limited.

No business does business alone. Connect across companies to build stronger supply chains.

Standardization also surfaced as a recurring theme during our roundtable conversation. While one-size-fits-all approaches rarely work, excessive customization slows progress and undermines scale. Leading organizations are finding a balance by standardizing where it drives speed and consistency, while allowing flexibility where it creates meaningful value.

Transformation doesn’t fail on technology, it fails on trust

Technology may enable transformation, but people determine whether it succeeds. Change management remains a critical factor, and even well-designed initiatives can stall if employees do not understand the purpose or feel threatened by the change.

Clear communication, local champions, and ongoing engagement help build trust and momentum. Leaders emphasized the importance of reinforcing that technology is designed to elevate roles by removing manual work and enabling employees to focus on higher-value activities, instead of replacing them. Being honest about what is working, what isn’t, and when to pivot builds credibility and keeps teams engaged over the long term.

Customer-centric supply chains don’t happen by accident

A significant shift underway is the move from inward-facing efficiency to explicit customer-centricity. Many supply chain organizations historically assumed their work benefited customers without clearly articulating how.

Today, customer impact is a unifying principle. Whether serving consumers, passengers, farmers, or B2B customers, supply chains are increasingly recognized as drivers of experience, reliability, and brand trust.

Customer collaboration is also playing a larger role in transformation. Sharing data and aligning processes across networks creates shared value and unlocks differentiated services. Progress must be communicated in terms customers care about—not internal metrics, but outcomes that improve service, speed, and transparency.

What the best transformation leaders do differently

Coming out of our conversation, the strongest transformation leaders shared a few defining traits:

  • They pivot quickly when something isn’t working. Rather than protecting sunk costs or rigid plans, they recognize when assumptions change and adjust course. Speed and adaptability often matter more than perfection.
  • They invest in people as intentionally as they invest in platforms. Adoption requires time, training, and leadership attention. Workforce readiness is treated as a core deliverable, not a side effort.
  • They celebrate progress. Visible milestones help sustain momentum and reinforce positive behavior throughout a long transformation journey.
  • They hold themselves accountable for real value creation. Success metrics are defined early and tracked consistently, whether financial, operational, or customer driven.

Turning ambition into measurable impact

What stood out most from my conversation at NASCES25 was the shared recognition that transformation is no longer optional. Supply chain leaders are embracing bold ambitions, people-centered change, and customer-focused innovation to turn intent into measurable impact.

SAP Business Network plays a critical role in this journey by helping organizations connect processes, partners, and data across the value chain to improve visibility, resilience, and decision-making at scale. And beyond the network, SAP’s supply chain management (SCM) portfolio helps orchestrate people, processes, and technology end-to-end—enabling leaders to move from intent to impact with integrated planning, execution, and insights that can drive real operational transformation.

To hear more directly from the leaders shaping this future, I encourage you to watch the full NASCES25 roundtable discussion and continue the conversation on how supply chains can lead meaningful transformation.


Keith Baranowski is global head of Sales for SAP Business Network.

Connect with us on LinkedIn to stay up-to-date with all things SAP News

SAP Announces Q4 and FY 2025 Results

WALLDORF — SAP SE announced today its financial results for the fourth quarter and fiscal year ended December 31, 2025.

At a glance

  • SAP meets revenue and exceeds non-IFRS operating profit and free cash flow outlook for FY2025
  • Total cloud backlog up 22% and up 30% at constant currencies
  • Current cloud backlog up 16% and up 25% at constant currencies
  • Cloud revenue up 23% and up 26% at constant currencies in FY2025
  • Cloud ERP Suite revenue up 28% and up 32% at constant currencies in FY2025
  • Total revenue up 8% and up 11% at constant currencies in FY2025
  • IFRS operating profit up 111%, non-IFRS operating profit up 28% and up 31% at constant currencies in FY2025
  • SAP announces a new, two-year share repurchase program with a volume of up to €10 billion

Christian Klein, CEO:

“Q4 was a strong cloud quarter, with bookings resulting in 30% Total Cloud Backlog growth to a record 77 billion Euros. The significant Current Cloud Backlog growth in Q4 has laid a strong foundation for accelerating Total Revenue growth through 2027. SAP Business AI has become a main driver for growth as it was included in two thirds of our Q4 cloud order entry, combined with strong AI adoption across the ERP Suite.”

Dominik Asam, CFO:

“We closed 2025 on a high note, delivering strong operating profit and free cash flow ahead of our expectations. This performance reflects focused execution, financial discipline, and the continued trust our customers place in us as the North Star for their digital transformation. As evidenced by continued strong growth well ahead of the market in SaaS and PaaS, and our ability to bring such growth down to the bottom line and Free Cash Flow, we are confident that our strategy and operational discipline will continue to drive long-term value creation.”

Find all results in the Quarterly Statement

For more information, press only:
Marcus Winkler, +46 (6227) 7-67497, marcus.winkler@sap.com, CET
Daniel Reinhardt, +49 (6227) 7-40201, daniel.reinhardt@sap.com, CET

For more information, financial community only:
Alexandra Steiger, +49 6227 7-60437, alexandra.steiger@sap.com, CET

5 Reasons Customer-Specific AI Will Outperform Generic AI in 2026

As enterprises move deeper into large-scale AI adoption, the conversation is shifting from experimentation to impact. Leaders are looking for outcomes they can trust, decisions that are consistent, and experiences that truly work for customers.

In 2026, AI earns its place when it is anchored in the realities of the business, shaped by enterprise data, processes, and lived customer interactions. Customer-specific AI brings intelligence directly into day-to-day operations, helping teams navigate complexity and support better decisions at scale while keeping human judgment firmly at the center. This is the shift shaping the next phase of AI adoption, moving from generic tools to intelligence that understands the business and grows stronger with every customer interaction.

1. Relevance beats raw intelligence in customer decisions

As AI becomes more central to customer-facing decisions, accuracy and relevance become non-negotiable. Generic models often lack the contextual understanding needed to interpret nuanced, exception-heavy customer scenarios. Customer-specific AI, trained on enterprise data, can recognize patterns unique to the organization—such as recurring dispute types, resolution bottlenecks, or region-specific service behaviors. According to SAP’s “Value of AI” report in collaboration with Oxford Economics, 36% of businesses say AI has already helped them address customer-related challenges, including improving customer engagement. This impact is strongest when intelligence reflects how customers actually interact with the business, rather than abstract assumptions.

2. Scaling complexity without losing control

Solve business challenges with innovations aligned with suite-first and AI-first strategies

Customer-specific AI proves most powerful where customer processes scale faster than manual intervention can keep up with. Returns, exchanges, dispute resolution, claims handling, and service exceptions span multiple systems, rules, and decision paths. AI that understands enterprise context can scale these processes without compromising consistency, governance, or accountability—enabling organizations to handle growing volumes while maintaining predictable outcomes and service quality.

3. Differentiation that compounds over time

Unlike generic AI capabilities that are broadly accessible, customer-specific AI is shaped by proprietary data, policies, and institutional knowledge. Over time, this creates intelligence that becomes deeply aligned with how the business operates—and increasingly difficult for competitors to replicate. The more the system learns from real customer interactions, the more it compounds as a durable source of differentiation.

4. Where customer-specific AI proves its value, from theory to practice

The impact of customer-specific AI is most visible in high-volume, exception-driven environments. A large European manufacturing and consumer goods organization illustrates this well through its approach to dispute, returns, and exchanges management. Operating across regions and product lines, the company faced long resolution cycles, inconsistent outcomes, and heavy manual effort. By deploying AI trained on its own historical disputes, order data, pricing rules, and resolution workflows, the organization embedded intelligence directly into its processes. Incoming claims were automatically classified, relevant documentation was surfaced, and resolution recommendations were generated based on prior outcomes and policies. Cases were routed efficiently, reducing back-and-forth and manual effort. Crucially, the system evolved with policy changes and customer behavior—augmenting human decision-making rather than replacing it. The result was a faster, more consistent, and scalable approach to managing customer disputes.

5. A cross-industry shift toward embedded intelligence

These principles extend well beyond dispute management. In manufacturing and supply chains, customer-specific AI supports fulfillment exceptions and service-level disputes. In financial services, it enables complaint handling aligned with regulatory frameworks. In healthcare, it supports decisions grounded in institutional protocols and patient journeys. In retail and services, it drives relevance by learning customer preferences, brand rules, and operational constraints. Industry observers increasingly note that AI’s next phase of growth will be driven by intelligence embedded into customer-facing processes—not stand-alone tools. According to SAP’s “Value of AI” report with Oxford Economics, the majority of businesses expect AI to become central to business processes, decision-making, and customer offerings by 2030, with only 3% saying otherwise.

In 2026, enterprises will judge AI less by novelty and more by its ability to deliver consistent customer and business outcomes. Customer-specific AI sits at the center of this shift because it weaves intelligence directly into how organizations operate and serve customers. This next stage of AI is not about removing human judgment—it is about strengthening it. By absorbing complexity and surfacing context-aware insights, customer-specific AI enables faster responses, greater consistency, and confident scaling of customer-centric decision-making. In an increasingly complex and customer-driven landscape, the true edge will belong to enterprises that invest in intelligence that genuinely understands their business.


Sindhu Gangadharan is head of Customer Innovation Services and managing director of SAP Labs India.

Sign up to receive weekly news highlights from the SAP News Center

SAP Named a Leader in 2026 Gartner® Magic Quadrant™ for Source-to-Pay Suites

SAP has been positioned as a Leader in the 2026 Gartner® Magic Quadrant™ for Source-to-Pay Suites.* We believe this recognition reflects SAP’s continued commitment to delivering a comprehensive, enterprise-grade suite powered by platform modernization, agentic AI innovation, and global scale. SAP Ariba solutions and SAP Business Network together provide the depth, breadth, and intelligence required to support procurement and finance organizations worldwide.

This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from SAP.

Building resilience and control across every category of spend

Organizations are under increasing pressure to manage costs, improve agility, and drive measurable outcomes. SAP’s connected and intelligence-driven source-to-pay suite is designed to help customers meet these challenges head on.

SAP Ariba solutions can deliver broad and deep functionality across the full source-to-pay lifecycle, spanning sourcing, contracting, procurement, invoicing, and supplier management. With the industry’s largest supplier network, SAP enables buyers and suppliers to collaborate with confidence, consistency, and scale.

SAP’s investment priorities: platform modernization and agentic AI innovation

Rather than reflecting external judgments, SAP’s strategic focus is centered on advancing its platform foundation, AI capabilities, and user experience to help customers operate with greater intelligence and agility. Our long‑term investments concentrate on three core areas:

Modernizing the platform for the future

A platform update arriving in 2026 will complete the modernization of SAP’s technical architecture. This modernized foundation can deliver greater extensibility, improved performance, and faster delivery of innovation, particularly in agentic and generative AI.

Harness the power of AI-enhanced procurement with the speed, intelligence, and scalability of an integrated source-to-pay suite

Built as an AI-native architecture, the next-generation platform can embed intelligence directly into workflows to help anticipate needs, guide decision-making, and automate actions across the entire source-to-pay process. This positions SAP to deliver the first truly AI-native source-to-pay suite built for the future of procurement.

Expanding intelligence with Joule

Joule plays a central role in bringing intelligence and insight to every stage of the source-to-pay process. Joule’s advanced AI agents can help automate tasks, support decision-making, enhance compliance, and unlock new productivity across sourcing, procurement, and supplier collaboration.

Reimagining the user experience

SAP is delivering an updated, consistent UI/UX across SAP applications. For procurement teams, this means smoother navigation, modernized interfaces, and enriched contextual intelligence, including enhanced supplier 360 profiles and strengthened collaboration capabilities.

Strengthening global scale and operational flexibility

SAP continues to demonstrate industry-leading global scale, supporting high-volume transactions and diverse compliance requirements across regions and industries. With multiple cloud deployment options across major hyperscalers and a robust portfolio of security and regulatory certifications, including FedRAMP, customers can operate confidently wherever they do business.

Connected solutions across SAP Business Network and the intelligent suite

SAP Business Network remains the largest supplier network in the source-to-pay market, spanning more than 190 countries. SAP’s broader spend ecosystem—including innovations such as SAP Ariba Category Management, the Spend Intelligence package in SAP Business Data Cloud, and SAP Ariba Intake Management—enables organizations to unify data, intelligence, and processes across sourcing, procurement, invoicing, and spend management.

Importantly, SAP’s capabilities extend well beyond traditional source-to-pay. Through connected solutions covering travel and expense, contingent workforce management, external labor, and additional spend categories, SAP provides a truly comprehensive spend management platform that can deliver visibility and control across the full spectrum of enterprise spend.

As organizations increasingly operate in heterogeneous application landscapes, SAP helps deliver openness, security, and extensibility so customers can maintain cohesive and connected processes throughout SAP and non-SAP environments.

Customer impact: outcomes that scale

Customers across industries and regions continue to demonstrate what’s possible with SAP’s source-to-pay solutions. Organizations report meaningful improvements in areas such as compliance, cost optimization, supplier collaboration, operational efficiency, and workforce productivity—from managing millions of invoices to running global sourcing initiatives to scaling AI-powered automation across distributed operations.

SAP remains deeply committed to helping procurement and finance organizations navigate complexity with confidence. Our investments in platform modernization, agentic AI, user experience, and cross-suite integration are all grounded in a single mission: to help customers achieve sustainable, long-lasting impact.

We’re grateful for this recognition and energized by the opportunity to deliver even greater value in the years ahead.

Learn more about source-to-pay solutions from SAP. Read the full Gartner Magic Quadrant for Source-to-Pay Suites report here.


Fang Chang is EVP and chief product officer for SAP Procurement and External Workforce Solutions.
Baber Farooq is senior vice president and head of Market Strategy for SAP Procurement and External Workforce solutions.

Get the latest SAP news delivered to your inbox once a week

*Gartner Magic Quadrant for Source-to-Pay Suites, January 21, 2026 – ID G00833291, by Micky Keck, Kaitlynn Sommers, Lynne Phelan, Magnus Bergfors, Alex Brady

Gartner does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.
Gartner and Magic Quadrant are a trademark of Gartner, Inc., and/or its affiliates.

Smiling businesswoman greeting a colleague on a meeting

Customer Success Through Trusted Partner Support Expertise

SAP cloud customers can benefit from implementation and operations services from SAP’s partner ecosystem, where an effective support collaboration between such partners and SAP is one essential element of customer success. Therefore, customers are encouraged to select and manage partners also based on their effectiveness in support collaboration.

Usually in the cloud, SAP partners provide implementation and operations services that complement SAP cloud services. In such scenarios, partners utilize support services from SAP on behalf of the joint customer. Typical scenarios include, for instance, requesting support for a technical issue by creating a support case with SAP or leveraging SAP Cloud ALM in an implementation project.

As partners regularly request support, SAP closely collaborates with its partner ecosystem along all dimensions of support and equips partners with the tools, insights, and self-services they need to deliver consistent, high‑value services alongside SAP. This includes:

  • Best practices for partners to self-sufficiently handle common consulting and “how-to” questions from customers
  • Data insights and dashboards, such as the customer insights dashboards and Support Collaboration Analytics (for partners) in SAP for Me, to help monitor performance, identify trends, and proactively realize quality improvements
  • Best practice guidance embedded in SAP Cloud ALM with the opportunity for partners to enhance process content and methodologies represented in the solution
  • Support Accreditation training that can guide partners to efficiently engage SAP for support
  • Enabling transparency on partner action on customer’s behalf through dedicated partner S-users

Partner selection based on trusted support expertise

Customers can now receive higher value from partners with trusted support expertise. Partners that have built strong capabilities for an effective support collaboration can accelerate project execution and reduce risks. For example:

  • Partners that self-sufficiently address customers’ consulting and “how-to” questions can resolve inquiries much faster, as it avoids involving SAP in the process.
  • Partners that use SAP self-services or automatic responses to support inquiries as the default without creating redundant cases can minimize delays and disruptions.
  • Partners that effectively follow SAP’s best practices, for example in SAP Cloud ALM and the SAP Activate methodology, can be better equipped to help mitigate project risks and escalations.

Customers are therefore encouraged to review partners’ support capabilities when selecting and working with partners. Effective partners apply SAP support best practices to help resolve issues and self-sufficiently handle customers’ consulting and “how-to” inquiries. As a target for showing trusted support expertise, no more than 30% of partner-created support cases should fall into these categories. High-performing partners will establish standard operating procedures and continuously optimize service delivery by leveraging SAP’s data-driven support insights. Such partners also engage more efficiently with customers and SAP by speaking the same language because consultants are qualified on support offerings, channels, and best practices through the Support Accreditation training. They can also deliver best practice-based implementations by applying SAP guidance available through SAP Cloud ALM.

To simplify partner selection, also based on their trusted support expertise, SAP will show such qualified partners in SAP Partner Finder from March 2026 onwards.

As a prerequisite for showing such trusted support expertise, customers need to ensure their partners are working with partner S-users.

Customer action recommendations to realize incremental value when engaging partners

When seeking a partner, select those with trusted support expertise, visible from March 2026 onward in SAP Partner Finder through a support proficiency designation.

When working with your partner, enable transparency by authorizing partner S-users for support case handling via the service partner user management application and leverage the customer insights dashboard in SAP for Me for transparency on partner support collaboration effectiveness.


Jens Bernotat is head of Strategy, Portfolio, and Ecosystem Management for Global Customer Support at SAP.
Marcus Blaesi is head of Global Ecosystem Programs for Global Customer Support at SAP.

Connect with SAP News on LinkedIn and stay up-to-date

For Retailers, Agentic Commerce Is Here

The clear message for retailers attending National Retail Federation’s 2026 Big Show in New York last week was that they need to urgently address the challenge brought about by the rapid adoption of generative AI tools by consumers and update their back-office and data systems if they are to thrive in the agentic commerce era.

Agentic AI was everywhere at NRF, emblazoned across the booths of technology exhibitors and the focus of many of the daily conference sessions. The message was simple: retailers face a major upheaval as consumers switch from traditional browser-based search to AI-enabled product discovery.

Consumers are rapidly adopting AI agents to help them find, compare, and, increasingly, buy products—this while many brands are still optimizing for search engines and are quietly disappearing from the models driving the next generation of product discovery.

“Agentic commerce—shopping powered by AI agents acting on our behalf—represents a seismic shift in the marketplace,” McKinsey, the strategic management consultancy, noted in a report published late last year. “It moves us toward a world in which AI anticipates consumer needs, navigates shopping options, negotiates deals, and executes transactions, all in alignment with human intent yet acting independently via multistep chains of actions enabled by reasoning models.”

This, as speakers and panelists at the NRF conference acknowledged, isn’t just an evolution of e-commerce; it’s a rethinking of shopping itself, in which the boundaries between platforms, services, and experiences give way to an integrated, intent-driven flow through highly personalized consumer journeys that deliver a fast, frictionless outcome.

As the McKinsey report noted, the stakes are high. By 2030, the U.S. B2C retail market alone could see up to US$1 trillion in orchestrated revenue from agentic commerce, with global projections reaching as high as $3 trillion to $5 trillion.

From discovery to delivery, create effortless experiences at every step

This means all the participants in the retail chain, from brands and retailers to logistics and payment service providers, will need to adapt to the new paradigm and successfully navigate the challenges of trust, risk, and innovation.

To help retailers address the immediate challenges posed by the shift to agentic commerce, SAP argues that three steps are necessary: first, restructuring web-page product data to be machine-readable; second, adding semantic summaries for LLM reasoning; and third, tagging products by the problems they solve, not just their attributes.

SAP announced a series of AI-enhanced retail innovations at NRF 2026, including a new storefront model context protocol (MCP) server that enables retailers to make their digital storefronts intelligible to AI and the new AI-native Retail Intelligence solution in SAP Business Data Cloud that leverages data from across SAP software and third-party systems to help provide accurate demand planning, improved forecast accuracy, and lower inventory costs to drive more seamless omnichannel engagements.

SAP Customer Experience has also unveiled a Digital Service Agent recently that can be combined with the Shopping Agent, creating one conversational AI that can handle the entire journey from product discovery and transaction to post-sales support.

These moves reflect a recognition that that LLMs have become a legitimate shopping channel, and that product discovery is moving from search engines to AI recommendations.

This shift challenges years of SEO and brand building. To stay relevant, SAP believes retailers must take an AI-first approach and have strong, connected data that helps agents understand products, predict demand, and respond quickly. Without this strong data foundation, brands will be at risk because if customers get poor recommendations and errors in pricing, trust can disappear fast.

Although some early agentic AI adopters in the retail sector are already seeing the benefits of agentic commerce, many global retailers are still ill-prepared for the holistic transformation they need to succeed in this new retail environment.

As McKinsey noted in a separate report published to coincide with NRF, “while most retail merchandising teams have invested in automation tools and experimented with AI, 71% of merchants say that AI merchandising tools have had limited to no effect on their business so far.”

“The challenge,” McKinsey said, “often lies less in the technology than in how it’s integrated and used. Systems remain fragmented, data is too messy to use to deliver useful recommendations, and adoption is uneven: 61% of respondents say that their organization isn’t at all or is only slightly prepared to scale AI across merchandising.”

Onstage at NRF, Andre Bechtold, president for SAP Industries & Experience, also emphasized that retailers should prepare now for agentic commerce and noted that simply “bolting on” AI tools to existing systems is not enough.

“Retailers are operating in an environment defined by volatility—tariffs, margin pressure, supply chain disruption, and customers that expect real-time, hyper-personalized experiences everywhere,” Bechtold said during a discussion with Gymshark, the workout apparel retailer. “At the same time, boards and investors are asking a tougher question than ever before: what outcomes are we actually getting?”

“The challenge,” he said, “isn’t a lack of innovation. In fact, most retailers have plenty of tools, pilots, and point solutions. The real issue is that disconnected technology doesn’t translate into resilient growth. That’s why the conversation is shifting. It’s no longer about isolated AI use cases or shiny new features. It’s about whether AI and data are embedded across the business—connecting supply chains, finance, merchandising, and customer engagement—in ways leaders can trust.”

Echoing the same point, Thomas Saueressig, member of the Executive Board of SAP SE, Customer Services & Delivery, commenting in a Handelsblatt article this week about a PwC survey of global CEOs that found that companies rarely achieve lower costs or higher sales through the use of AI, emphasized that AI only contributes value when consistently embedded in business processes.  “As long as AI runs alongside the core business as an isolated project, the effects remain limited,” he said.


Sign up to receive weekly news highlights from the SAP News Center

Previous Next
Close
Test Caption
Test Description goes like this