With ASML, the Netherlands currently has the largest capitalized listed company in Europe. It is the global market leader in its field and, with a 15% weighting, calls the shots in the AEX.
SAP SE is its German counterpart in this regard. This German software company is the global market leader in enterprise resource planning (ERP) solutions. In the process, it is the number three largest capitalized European company and determines 15% of the German stock index DAX40. Time for a closer look to determine what opportunities this software giant has to offer for you as an investor.
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SAP: introduction
The name SAP is an acronym of the original German name: Systemanalyse Programmentwicklung, which translates to System Analysis Program Development.
The company was founded in 1972 by five former IBM employees in Walldorf, Germany, where it is still headquartered. SAP develops software that helps companies integrate and manage their business processes such as finance, logistics, HR and supply chain within a single system.
With about 110,000 employees, SAP serves millions of users in more than 180 countries, including a large number of multinationals, governments and medium-sized companies.
Its main competitors are Oracle and Microsoft (Dynamics). SAP's strategic focus in recent years has been heavily on Cloud transformation, converting traditional on-premises systems to SaaS solutions.
In the second quarter of 2025, SAP reported revenue of about €9.03 billion, which was up 9% from the same quarter in 2024. At the same time, cloud revenue grew about 24%. SAP cited strong cloud growth, especially of cloud ERP solutions, as a key pillar.
In 2025, SAP further positioned itself as a cloud & AI-driven company: financially with solid growth, technologically with clear innovation momentum and strategically with initiatives around skills and industrial applications.
What are the views of analysts on SAP?
Several analysts have price targets in the €270 - €310 range, with outliers to around €345 for the 12-month outlook. On average, the price target for the coming year is €284. SAP's share price is currently around €220.
The consensus among technical analysts is a lot less positive and a decline is expected in the near term. Analysts seem to assume that SAP SE is on an attractive growth path, supported by the transition to cloud, the migration of legacy systems and the opportunities created by AI and automation solutions. The consensus is that there is still potential up in the trajectory, provided execution remains good and external obstacles are limited. At the same time, there are no unrealistic expectations: the pace of growth must remain confirmed and external risks remain relevant.
What is our view on the direction of SAP?
Below is the price chart as of November 2021, showing the most likely scenario according to our algorithm.
After the huge rise of over 250% in the period summer 2022 and early 2025, a healthy correction is underway this year. This has not yet been completed and may continue to around €180.
The long-term upward trend has not been completed, so there is growth potential in it for the next few years. Our system goes along with the analysts' expectations. For this year, we can expect another decline after which the price can start to rise sharply. First target is then €280 and for several years at €360.
Conclusion:
SAP is a very strong company with nice developments. In the €200 - €180 zone, you can consider taking the stock into your portfolio. Price target €280 and for the period of several years, there is room to €360.
SAP's next quarterly earnings release date is scheduled for January 29, 2026, for Q4 2025.
Disclaimer: Investing involves risk. Our analysts are not financial advisors. Always consult an advisor when making financial decisions. The information and tips provided on this website are based on our analysts' own insights and experiences. They are therefore for educational purposes only.