US Software Sector Downturn Hits European Giants Like SAP

February 14, 2026 9:56am

European software leader SAP faces major losses amid a sharp sell-off triggered by AI concerns in the US software market.

Key details

• US software sector dropped 14.5% in January, its worst since 2008.
• AI advancements sparked investor concerns over traditional subscription models.
• SAP's market value declined nearly 40% from its peak in 2025, losing €188 billion in a year.
• Smaller European firms like Sidetrade and Lime Technologies also suffered steep losses.

The US software industry experienced a severe market sell-off, with a 14.5% drop in January 2026, marking the sharpest decline since October 2008. This slump accelerated into early February, with an additional 10% loss in less than two weeks. The sell-off is largely driven by investor concerns that artificial intelligence (AI) tools may disrupt traditional subscription-based software business models that have underpinned industry growth for years. Key US companies such as Unity Software, Rapid7, and Braze have seen their market values drop by more than half since the start of the year, while larger firms like Palantir, Salesforce, Intuit, and ServiceNow have fallen approximately 30%.

This article was translated and synthesized from German sources, providing English-speaking readers with local perspectives.