SAP CEO: Our AI breakthrough moment is coming

SAN FRANCISCO, Calif. — SAP ( SAP ) CEO Christian Klein is aiming to push back on the Wall Street narrative that it's well behind the curve in the AI-driven software push.

"The breakthrough is definitely now our new platform, which is now becoming generally available in the fall," SAP CEO Christian Klein told Yahoo Finance from the Goldman Sachs Communacopia & Tech Conference (video above). "On this platform, you can build any agent you want with any LLM. Then you have a very rich context layer … so that is really a breakthrough moment. And we have already a lot of customers testing the new platform."

SAP has a lot riding on it having an AI turning point.

The software company's second quarter sales rose 9% from the prior year to 9.88 billion euros ($10.8 billion). Cloud sales rose 22%. Earnings came in ahead of analyst estimates.

Despite the top- and bottom-line outperformance and a 27% increase in cloud backlog, management modestly trimmed its full-year 2026 main operating profit guidance to adjust for several acquisitions.

The guidance trimming did little to alleviate concerns about SAP's future. With new enterprise software vendors emerging and others moving quickly to evolve for the AI era, investors have taken a cautious stance on SAP.

Shares are down 13% year to date compared to a 12% gain for the S&P 500 ( ^GSPC ).

"SAP's current cloud backlog is likely to decelerate further given the sheer size of the base that has built up due to migrations that have already materialized, making it difficult to build conviction in a re-acceleration," JPMorgan analyst Toby Ogg wrote in a note. "In a market that now demands acceleration to counter prevailing software bear arguments, deceleration is unlikely to support near-term stock performance."

Ogg noted that SAP's business model transition and intensifying competition pose two additional headwinds that cloud its outlook.

To right the ship, Klein has taken direct control of SAP's AI strategy and slashed headcount and other operating expenses.

"All my investors are asking me, hey, how big is your AI business already? Can you share some more insights?" Klein said. "And they were really excited about the stories we can tell and the customer proof points. … What is very important in 12 months from now is that this also then produces great financial results."

Brian Sozzi is Yahoo Finance's Executive Editor, host of the ' Power Players With Brian Sozzi' podcast and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi , Instagram , and LinkedIn . Tips on stories? Email brian.sozzi@yahoofinance.com.