Company Profile: SAP SE, headquartered in Germany, is a leading global provider of enterprise application software and services, operating in over 157 countries. The company specializes in helping businesses manage core operations, including finance, human resources, supply chain, and customer experience, through a diverse portfolio of cloud and on-premises solutions.
Financial Performance
Q2 2025 Earnings: In its Q2 2025 earnings call on July 22, SAP reported a remarkable 28% increase in cloud revenue, driven primarily by strong performance in its Cloud ERP Suite. Additionally, the operating profit surged by 35%, indicating robust financial health.
Strategic Initiatives
Expansion in China: SAP's strategic partnership with Alibaba is expected to enhance its business operations in China, creating a strong pipeline for growth in the latter half of 2025.
Investment Insights
Analyst Ratings: The company has received a consensus Buy rating from 16 analysts, with a notable 1-year median upside potential of 25.41%. This reflects strong investor confidence in SAP's future performance.
Dividend Information: SAP offers an annual dividend of $2.63 per share, supported by 32 hedge funds, making it an attractive option for investors seeking stable dividend stocks.
Market Comparisons
Investment Alternatives: While SAP is recognized as a solid investment, the article suggests that certain AI stocks may present greater upside potential and lower downside risk, particularly in light of current market trends and economic factors.
SAP
$243.66+Infinity%1D
Analyst Views on SAP
Wall Street analysts forecast SAP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SAP is 332.67 USD with a low forecast of 320.00 USD and a high forecast of 348.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
Wall Street analysts forecast SAP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SAP is 332.67 USD with a low forecast of 320.00 USD and a high forecast of 348.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 244.490
Low
320.00
Averages
332.67
High
348.00
Current: 244.490
Low
320.00
Averages
332.67
High
348.00
Citi
Balajee Tirupati
Buy
downgrade
2025-12-11
Reason
Citi
Balajee Tirupati
Price Target
2025-12-11
downgrade
Buy
Reason
Citi analyst Balajee Tirupati lowered the firm's price target on SAP to EUR 280 from EUR 295 and keeps a Buy rating on the shares.
Arete
Neutral -> Buy
upgrade
$270
2025-12-11
Reason
Arete
Price Target
$270
2025-12-11
upgrade
Neutral -> Buy
Reason
Arete upgraded SAP to Buy from Neutral with a EUR 270 price target.
JPMorgan
Toby Ogg
Overweight
downgrade
2025-12-04
Reason
JPMorgan
Toby Ogg
Price Target
2025-12-04
downgrade
Overweight
Reason
JPMorgan analyst Toby Ogg lowered the firm's price target on SAP to EUR 290 from EUR 310 and keeps an Overweight rating on the shares.
Morgan Stanley
NULL -> Overweight
maintain
2025-10-31
Reason
Morgan Stanley
Price Target
2025-10-31
maintain
NULL -> Overweight
Reason
Morgan Stanley raised the firm's price target on SAP to EUR 300 from EUR 295 and keeps an Overweight rating on the shares.
About SAP
SAP SE (SAP) is a Germany-based company. The Company provides business application software. It operates through three segments: Applications, Technology and Services, which engages in the sale of software licenses, subscriptions to its cloud-based applications and related services, primarily support services and various professional services, and support services, as well as implementation services for its software products and educational services on the use of its products; the SAP Business Network segment, which includes its cloud-based collaborative business networks and services related to the SAP Business Network, including cloud applications, professional services and educational services, as well as the Company markets and sells cloud offerings developed by SAP Ariba, SAP Fieldglass and Concur; and the Customer Experience segment, which comprises on-premise and cloud-based products that execute front office functions across the entire customer experience.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
