Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>SAP SE reported a solid start to fiscal year 2026 despite an uncertain and evolving macroeconomic and geopolitical environment, notably the ongoing conflict in the Middle East.</li><li>The company’s first quarter results highlighted continued momentum across its portfolio, particularly in cloud offerings.</li><li>Cloud backlog rose by 25% to €21.9 billion, while cloud revenue increased 27%, nearing the €6 billion mark, with the cloud ERP Suite growing 30%.</li></ul>

SAP SE reported a solid start to fiscal year 2026 despite an uncertain and evolving macroeconomic and geopolitical environment, notably the ongoing conflict in the Middle East.The company’s first quarter results highlighted continued momentum across its portfolio, particularly in cloud offerings.Cloud backlog rose by 25% to €21.9 billion, while cloud revenue increased 27%, nearing the €6 billion mark, with the cloud ERP Suite growing 30%.

SAP Is Quietly Building A Game-Changing AI Engine Inside Its ERP Empire!

Owner and CEO, GR20 Research

Gregory Ramirez

Owner and CEO

Industry Research and Consulting Services

GR20 Research

GR20 Research provides industry research and consulting services

Thematic (Sector/Industry)

<ul>
<li>European growth remains subdued, but large-cap software vendors are proving resilient, with Top 10 lfl revenue growth reaching 9.7%, versus 3.0% for the broader market.</li>
<li>North America continues to outperform Europe, with lfl revenue growth accelerating to 13.3% and reaching 25.9% among the ten largest software companies.</li>
<li>Software M&amp;A remains strong but concentrated, with USD 145bn of transactions above USD 200m year-to-date, driven primarily by strategic buyers rather than private equity.</li>
</ul>


European growth remains subdued, but large-cap software vendors are proving resilient, with Top 10 lfl revenue growth reaching 9.7%, versus 3.0% for the broader market.
North America continues to outperform Europe, with lfl revenue growth accelerating to 13.3% and reaching 25.9% among the ten largest software companies.
Software M&amp;A remains strong but concentrated, with USD 145bn of transactions above USD 200m year-to-date, driven primarily by strategic buyers rather than private equity.


European Software: Q2 2026 Takeaways - Big Guys Are Holding Up Well

<ul>
<li>SAP delivered a strong Q1 with robust cloud growth and margin expansion, exceeding expectations. However, FY 2026 growth is now expected to remain in line with 2025 rather than accelerate. </li>
<li>SAP is well positioned to benefit from AI. However, scaling AI reliably across mission-critical processes remains complex. Embedding domain expertise into AI agents is a key strategic priority for 2026. </li>
<li>AI is unlikely to disrupt SAP’s business model, as monetisation mechanisms are in place. It is expected to drive productivity gains, accelerate ERP migrations, and support margin expansion from 2027.</li>
</ul>


SAP delivered a strong Q1 with robust cloud growth and margin expansion, exceeding expectations. However, FY 2026 growth is now expected to remain in line with 2025 rather than accelerate. 
SAP is well positioned to benefit from AI. However, scaling AI reliably across mission-critical processes remains complex. Embedding domain expertise into AI agents is a key strategic priority for 2026. 
AI is unlikely to disrupt SAP’s business model, as monetisation mechanisms are in place. It is expected to drive productivity gains, accelerate ERP migrations, and support margin expansion from 2027.


SAP (SAP GR): AI and Business Model Transformation - This Time Looks Different

<ul><li>SAP has entered 2026 with two closely linked messages for investors and customers: enterprise AI will only be as useful as the quality of the data beneath it, and the company intends to deepen its role at that data layer.</li><li>That backdrop makes its announced agreement to acquire Reltio more than a routine software transaction.</li><li>In late March 2026, SAP said the combination would strengthen SAP Business Data Cloud and help customers unify, cleanse, and harmonize SAP and non-SAP data for agentic AI use cases.</li></ul>

SAP has entered 2026 with two closely linked messages for investors and customers: enterprise AI will only be as useful as the quality of the data beneath it, and the company intends to deepen its role at that data layer.That backdrop makes its announced agreement to acquire Reltio more than a routine software transaction.In late March 2026, SAP said the combination would strengthen SAP Business Data Cloud and help customers unify, cleanse, and harmonize SAP and non-SAP data for agentic AI use cases.

SAP Takeover Move Signals A Massive Shift In The Future Of Business Data!

<ul>
<li>Reltio strengthens SAP's positioning in agentic AI by adding a cloud-native MDM platform, addressing a critical gap in delivering trusted, real-time data context beyond its existing Business Data Cloud stack.   </li>
<li>Reltio is a recognised MDM leader, with USD 185m ARR, accelerating growth (40% Q4 bookings), strong enterprise traction (200+ large customers) and differentiated AI-driven capabilities, supporting premium valuation multiples.   </li>
<li>Likely &gt;EUR 1bn bolt-on, implying high EV/sales, but immaterial to FY26 guidance and balance sheet; strategic upside hinges on SAP’s ability to monetise AI at scale across its installed base.</li>
</ul>


Reltio strengthens SAP's positioning in agentic AI by adding a cloud-native MDM platform, addressing a critical gap in delivering trusted, real-time data context beyond its existing Business Data Cloud stack.   
Reltio is a recognised MDM leader, with USD 185m ARR, accelerating growth (40% Q4 bookings), strong enterprise traction (200+ large customers) and differentiated AI-driven capabilities, supporting premium valuation multiples.   
Likely &gt;EUR 1bn bolt-on, implying high EV/sales, but immaterial to FY26 guidance and balance sheet; strategic upside hinges on SAP’s ability to monetise AI at scale across its installed base.


SAP (SAP GR): Reltio Acquisition - Making Data Ready for Agentic AI

Germany

SAP SE is a multinational software company. The Company develops business software, including e-business and enterprise management software, consults on organizational usage of its applications software, and provides training services. SAP markets its products and services worldwide.

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SAP (SAP GR)

SAP Is Quietly Building A Game-Changing AI Engine Inside Its ERP Empire!

SAP SE reported a solid start to fiscal year 2026 despite an uncertain and evolving macroeconomic and geopolitical environment, notably the...

Baptista Research

European Software: Q2 2026 Takeaways - Big Guys Are Holding Up Well

European software growth remains weak, but large caps are resilient. US vendors are outperforming, while strategic M&A remains strong despite...

Gregory Ramirez

SAP (SAP GR): AI and Business Model Transformation - This Time Looks Different

SAP reports strong Q1 results with cloud growth, but FY 2026 growth expected to remain steady. AI integration is a priority for 2026, expected to...

Gregory Ramirez

SAP Takeover Move Signals A Massive Shift In The Future Of Business Data!

SAP has entered 2026 with two closely linked messages for investors and customers: enterprise AI will only be as useful as the quality of the data...

Baptista Research

SAP (SAP GR): Reltio Acquisition - Making Data Ready for Agentic AI

Reltio's cloud-native MDM platform strengthens SAP's agentic AI positioning, with potential for high valuation multiples and strategic upside in...

Gregory Ramirez

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

SAP Is Quietly Building A Game-Changing AI Engine Inside Its ERP Empire!

SAP SE reported a solid start to fiscal year 2026 despite an uncertain and evolving macroeconomic and geopolitical environment, notably the...

Baptista Research

European Software: Q2 2026 Takeaways - Big Guys Are Holding Up Well

European software growth remains weak, but large caps are resilient. US vendors are outperforming, while strategic M&A remains strong despite...

Gregory Ramirez

SAP (SAP GR): AI and Business Model Transformation - This Time Looks Different

​SAP reports strong Q1 results with cloud growth, but FY 2026 growth expected to remain steady. AI integration is a priority for 2026, expected to...

Gregory Ramirez

SAP Takeover Move Signals A Massive Shift In The Future Of Business Data!

SAP has entered 2026 with two closely linked messages for investors and customers: enterprise AI will only be as useful as the quality of the data...

Baptista Research

SAP (SAP GR): Reltio Acquisition - Making Data Ready for Agentic AI

​Reltio's cloud-native MDM platform strengthens SAP's agentic AI positioning, with potential for high valuation multiples and strategic upside in...

Gregory Ramirez

SAP reports strong Q1 results with cloud growth, but FY 2026 growth expected to remain steady. AI integration is a priority for 2026, expected to...

Reltio's cloud-native MDM platform strengthens SAP's agentic AI positioning, with potential for high valuation multiples and strategic upside in...