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

Equity Bottom-Up

<ul>
<li>SAP is advancing agentic AI through Joule, Business Data Cloud and Knowledge Graph, strengthening its application and cloud proposition, accelerating migration and deepening customer stickiness.</li>
<li>TechWolf enhances SuccessFactors with workforce skills and activity insights, enabling AI-driven planning, reskilling and work redesign, with limited near-term financial impact.</li>
<li>AI offers monetisation through premium agents, cloud migration, SAP Pay and AI-enabled services. Despite initial inference costs, SAP seems well positioned for long-term AI-driven growth.</li>
</ul>


SAP is advancing agentic AI through Joule, Business Data Cloud and Knowledge Graph, strengthening its application and cloud proposition, accelerating migration and deepening customer stickiness.
TechWolf enhances SuccessFactors with workforce skills and activity insights, enabling AI-driven planning, reskilling and work redesign, with limited near-term financial impact.
AI offers monetisation through premium agents, cloud migration, SAP Pay and AI-enabled services. Despite initial inference costs, SAP seems well positioned for long-term AI-driven growth.


SAP (SAP GR): SAP Connect 2026 - From Roadmap to Execution

<ul>
<li>SAP has reorganised its leadership around AI, with CEO Christian Klein taking direct responsibility for technology and dedicated teams driving the Business AI Platform and Autonomous Suite.</li>
<li>The new structure integrates AI, data, platforms and applications to accelerate innovation, improve customer support and enable end-to-end autonomous business processes across SAP's software portfolio.</li>
<li>SAP's AI transformation offers significant long-term potential, but investor confidence will depend on successful execution amid enterprise adoption challenges and an uncertain geopolitical environment.</li>
</ul>


SAP has reorganised its leadership around AI, with CEO Christian Klein taking direct responsibility for technology and dedicated teams driving the Business AI Platform and Autonomous Suite.
The new structure integrates AI, data, platforms and applications to accelerate innovation, improve customer support and enable end-to-end autonomous business processes across SAP's software portfolio.
SAP's AI transformation offers significant long-term potential, but investor confidence will depend on successful execution amid enterprise adoption challenges and an uncertain geopolitical environment.


SAP (SAP GR): AI Transformation Is Being Taken Seriously

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.

<ul><li>SAP, a global leader in enterprise software, reported its second quarter and half-year 2026 financial results, highlighting a continued focus on cloud transition and the emerging role of artificial intelligence (AI) in its offerings.</li><li>The company experienced robust growth in cloud revenue, which increased by 24% year-over-year to €6.3 billion, driven notably by cloud ERP suite revenues rising 27% and a solid execution of on-premise to cloud migrations.</li><li>Total revenue climbed 11% to €9.9 billion despite a slight decline in services revenue due to strategic consultant reallocations toward AI adoption.</li></ul>

SAP, a global leader in enterprise software, reported its second quarter and half-year 2026 financial results, highlighting a continued focus on cloud transition and the emerging role of artificial intelligence (AI) in its offerings.The company experienced robust growth in cloud revenue, which increased by 24% year-over-year to €6.3 billion, driven notably by cloud ERP suite revenues rising 27% and a solid execution of on-premise to cloud migrations.Total revenue climbed 11% to €9.9 billion despite a slight decline in services revenue due to strategic consultant reallocations toward AI adoption.

SAP’s €6.3 Billion Cloud Surge: Can Autonomous Enterprise Reshape ERP?

<ul>
<li>SAP delivered resilient Q2 2026 results, with strong cloud demand and accelerating backlog growth outweighing temporary margin pressure from AI investment, acquisitions and higher R&amp;D expenditure.</li>
<li>SAP's integrated Business AI Platform should accelerate cloud adoption, expand monetisation opportunities and deliver productivity gains, supporting stronger margin expansion from H2 2026 onwards.</li>
<li>AI investments should generate attractive returns, recent acquisitions appear reasonably valued, and the current valuation underestimates long-term earnings potential.</li>
</ul>


SAP delivered resilient Q2 2026 results, with strong cloud demand and accelerating backlog growth outweighing temporary margin pressure from AI investment, acquisitions and higher R&amp;D expenditure.
SAP's integrated Business AI Platform should accelerate cloud adoption, expand monetisation opportunities and deliver productivity gains, supporting stronger margin expansion from H2 2026 onwards.
AI investments should generate attractive returns, recent acquisitions appear reasonably valued, and the current valuation underestimates long-term earnings potential.


SAP (SAP GR): From Investment to Productivity Gains

<ul>
<li>The European Commission accepted SAP's legally binding commitments, introducing more flexible maintenance policies for on-premise software, including the abolition of reinstatement fees and lower back-maintenance charges.</li>
<li>The changes reduce barriers to switching between SAP and third-party maintenance providers, increasing customer flexibility while leaving SAP's cloud strategy and financial outlook broadly unchanged.</li>
<li>We believe the decision sets an important regulatory precedent, reinforcing expectations that enterprise software vendors compete through innovation and service quality rather than contractual switching barriers.</li>
</ul>


The European Commission accepted SAP's legally binding commitments, introducing more flexible maintenance policies for on-premise software, including the abolition of reinstatement fees and lower back-maintenance charges.
The changes reduce barriers to switching between SAP and third-party maintenance providers, increasing customer flexibility while leaving SAP's cloud strategy and financial outlook broadly unchanged.
We believe the decision sets an important regulatory precedent, reinforcing expectations that enterprise software vendors compete through innovation and service quality rather than contractual switching barriers.


SAP (SAP GR): A Decision Likely to Set a Precedent for the Software Industry

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 (SAP GR): SAP Connect 2026 - From Roadmap to Execution

SAP is turning its enterprise data and applications into a competitive advantage in agentic AI, unlocking new revenue streams, accelerating cloud...

Gregory Ramirez

SAP (SAP GR): AI Transformation Is Being Taken Seriously

SAP reorganizes leadership around AI to drive innovation and autonomous business processes, with CEO Christian Klein taking direct responsibility...

Gregory Ramirez

SAP’s €6.3 Billion Cloud Surge: Can Autonomous Enterprise Reshape ERP?

SAP, a global leader in enterprise software, reported its second quarter and half-year 2026 financial results, highlighting a continued focus on...

Baptista Research

SAP (SAP GR): From Investment to Productivity Gains

SAP's strong Q2 results driven by cloud demand and AI investments, with Business AI Platform expected to boost margins and earnings potential.

Gregory Ramirez

SAP (SAP GR): A Decision Likely to Set a Precedent for the Software Industry

European Commission accepts SAP's commitments for more flexible maintenance policies, reducing barriers to switching providers and setting a...

Gregory Ramirez

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

SAP (SAP GR): SAP Connect 2026 - From Roadmap to Execution

SAP is turning its enterprise data and applications into a competitive advantage in agentic AI, unlocking new revenue streams, accelerating cloud...

Gregory Ramirez

SAP (SAP GR): AI Transformation Is Being Taken Seriously

​SAP reorganizes leadership around AI to drive innovation and autonomous business processes, with CEO Christian Klein taking direct responsibility...

Gregory Ramirez

SAP’s €6.3 Billion Cloud Surge: Can Autonomous Enterprise Reshape ERP?

SAP, a global leader in enterprise software, reported its second quarter and half-year 2026 financial results, highlighting a continued focus on...

Baptista Research

SAP (SAP GR): From Investment to Productivity Gains

​SAP's strong Q2 results driven by cloud demand and AI investments, with Business AI Platform expected to boost margins and earnings potential.

Gregory Ramirez

SAP (SAP GR): A Decision Likely to Set a Precedent for the Software Industry

​European Commission accepts SAP's commitments for more flexible maintenance policies, reducing barriers to switching providers and setting a...

Gregory Ramirez

SAP reorganizes leadership around AI to drive innovation and autonomous business processes, with CEO Christian Klein taking direct responsibility...

SAP's strong Q2 results driven by cloud demand and AI investments, with Business AI Platform expected to boost margins and earnings potential.

European Commission accepts SAP's commitments for more flexible maintenance policies, reducing barriers to switching providers and setting a...