German software giant SAP announced Tuesday (Sept. 2) that it is investing 20 billion euros ($23.3 billion) to expand its “sovereign cloud” services as it bets on Europe's desire to keep its data within its borders.
SAP's recent share drop is a buying opportunity, as AI fears are overblown for this wide-moat, mission-critical software leader. SAP's cloud transition has reached a tipping point, driving strong recurring revenue growth, margin expansion, and robust free cash flow. The company is largely immune to AI disruption due to its depth, data, execution, and critical role in enterprise operations.
German software maker SAP will invest 150 million euros ($175.13 million) in a research and development centre in Vietnam over the next five years, the firm said on Thursday.
SAP announced Friday that it has reached an agreement to acquire recruiting software company SmartRecruiters.
SAP posts 37% EPS growth and 24% cloud revenue surge, but shares slip after mixed Q2 results and currency concerns.
SAP SE (NYSE:SAP ) Q2 2025 Earnings Conference Call July 22, 2025 5:00 PM ET Company Participants Alexandra Christine Kasper Steiger - Global Head of Investor Relations Christian Klein - CEO & Member of Executive Board Dominik Asam - CFO & Member of Executive Board Conference Call Participants Adam Dennis Wood - Morgan Stanley, Research Division Ben Castillo-Bernaus - BNP Paribas Exane, Research Division Charles Brennan - Jefferies LLC, Research Division Frederic Emile Alfred Boulan - BofA Securities, Research Division Jackson Edmund Ader - KeyBanc Capital Markets Inc., Research Division Johannes Schaller - Deutsche Bank AG, Research Division Mark L. Moerdler - Sanford C.
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SAP is a critical enterprise software provider, now reaching a tipping point in its cloud transition, unlocking superior growth and business model benefits. Cloud revenues surpassed non-cloud for the first time in 2024, accelerating double-digit growth and driving operational leverage through upsell, cross-sell, and cost efficiencies. SAP's deep enterprise integration and data position it as a top AI applications play, with AI acting as a revenue accelerator and value enhancer for its offerings.
SAP's Q2 results may get a lift from surging cloud ERP growth, bold AI bets and strong momentum in enterprise software.
Siemens and SAP CEOs have urged the European Union to revise its artificial intelligence legislation, saying the current rules stifle innovation.
The CEO of SAP, Christian Klein, says there is "not so much demand" for data centers in Europe, and that the continent should focus on winning the artificial intelligence software race. He speaks to Bloomberg's Tom Mackenzie at the software company's headquarters in Walldorf, Germany.
German company SAP went from software provider to the IT engine driving global business. Bloomberg's Tom Mackenzie breaks down SAP's rise to Europe's most valuable company.