SAP SE Website

SAP SE

XTRA-SAP

Company Overview

SAP SE, together with its subsidiaries, operates as an enterprise application software company worldwide. The company operates through three segments: Applications, Technology & Support; Qualtrics; and Services. It offers SAP S/4HANA, an ERP suite with intelligent technologies, such as artificial intelligence, machine learning, and advanced analytics; SAP SuccessFactors Human Experience Management provides cloud-based solutions, such as a human resources management system for core HR and payroll, talent management, employee experience management, and people analytics; and intelligent spend management solutions, including products branded under the SAP Ariba, SAP Concur, and SAP Fieldglass names. The company also provides SAP customer experience solutions; SAP Business Technology platform that enables customers and partners to extend and customize SAP applications in a cloud-native way; and SAP Business Network that enable companies to extend their ecosystem, react to supply chain disruptions, discover new trading partners, and find new opportunities. In addition, it offers business process intelligence solutions aim to help customers analyze their operations, understand their process bottlenecks, and improve their business process landscape; Experience solutions; SAP's industry cloud provides modular solutions addressing industry-specific functions; and SAP's ecosystem build, sell, service, and run SAP solutions and technology, as well as sustainable business solutions, services, and partnerships solutions. SAP SE was founded in 1972 and is headquartered in Walldorf, Germany.

  • Name

    SAP SE

  • CEO

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  • Website

    www.sap.com

  • Sector

    Software

  • Year Founded

    1972

Company Statistics

Profile

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Bulls Say

  • SAP’s transition to the cloud should drive double-digit revenue growth over the next several years.

  • With most of SAP’s legacy ERP customers now committed to its new ERP, S/4HANA, the risk of customer loss in the cloud transition is low.

  • SAP’s new focus on cost efficiency and scaling of its cloud products leaves ample room for margins to improve.

Bears Say

  • SAP has had challenges with operational efficiency in the past which has contributed to it having lower margins than some of its major competitors.

  • On-premises ERP customers can be hesitant to move to the cloud. Ongoing delays may ultimately reduce revenue growth expectations.

  • SAPs slow shift to the cloud has enabled new cloud-native competitors to enter the market and gain meaningful market share.

Source: Morningstar Analysis - Oct 23, 2025

What's happening

Nov 15, 2025 - Dec 17, 2025

SAP Faces Regulatory Headwinds Amidst Mixed Market Sentiment

  • SAP's stock has experienced a slight decline of -0.2% over the past month, hitting an eight-week and twelve-month low.
  • Analyst sentiment remains cautious, with Citi lowering its price target from EUR295.00 to EUR280.00 while maintaining a Buy rating.
  • Strategic partnerships in real estate intelligence and graphic papers reflect efforts to innovate despite ongoing challenges.

Over the past month, SAP's stock has shown an overall movement of -0.2%. This performance indicates relative underperformance when compared to the S&P 500, which returned 1.3%, resulting in a difference of -1.6% for SAP against this benchmark. The decline is particularly significant as it coincides with the company's shares reaching both an eight-week low and a twelve-month low amid concerns regarding its market position and regulatory challenges.

The bearish sentiment surrounding SAP has been exacerbated by an EU antitrust investigation that prompted proposed concessions aimed at addressing competition issues without materially impacting financial performance expectations. Recent analyst actions have further contributed to this negative outlook; notably, Citi reduced its price target for SAP from EUR295.00 to EUR280.00 while still maintaining a Buy rating, indicating investor caution regarding future valuations despite some strengths within the business model.

Despite these headwinds, there were positive developments that provided brief moments of optimism during this challenging period for SAP. Partnerships with RESAAS focused on real estate intelligence and joint ventures with Sappi and UPM aimed at consolidating graphic paper assets highlight strategic initiatives designed to enhance operational efficiencies in key sectors like real estate and graphic papers.

However, these positive announcements were insufficient to counteract persistent bearish trends driven by legal challenges and regulatory scrutiny significantly affecting investor perception throughout this timeframe. Additionally, new training academies established in regions such as Saudi Arabia aim at expanding capabilities but appeared muted against broader concerns related to leadership dynamics following executive shifts within associated tech companies.

Overall performance metrics indicate that while SAP experienced declines relative to both historical averages and sector benchmarks—the Information Technology (XLK) sector saw stronger returns—it still managed better outcomes than many peers within its industry context; specifically outperforming XLK by 50.3%.

XTRA:SAP