European software and IT services indices fell 27% in Q1 2026, extending a 12‑month decline to 38% through March.
UBS warned SAP SE and Dassault Systèmes may post weak bookings and licensing revenue due to Gulf conflict disrupting March deal closures.
Concerns that third‑party AI platforms and AI‑coding tools could reduce demand for traditional enterprise software and services, pressuring vendors.
UBS downgraded Nemetschek to Sell, flagged SAP’s cloud backlog slowdown to 24% and Amadeus IT’s possible 2026 guidance withdrawal.