SAP Conference Call Summary - November 14, 2025 Company Overview - **Company**: SAP (NYSE: SAP) - **Industry**: Software and Cloud Services Key Points and Arguments Financial Performance and Growth - SAP experienced a strong start in Q1 2025, but faced tariff disruptions impacting Q2 and Q3, leading to a cautious outlook in September [3][4] - CCB (Cloud and Cloud-Based) growth is projected to be slightly down by year-end, influenced by the WalkMe acquisition and deal slippage [4][6] - Q3 showed strong CCB growth, with underlying performance remaining robust despite M&A impacts [7][9] - Large transactions in the pipeline could significantly affect Q4 CCB growth if closed within the year [8][12] - The institutional business in the U.S. has shown signs of recovery, with a significant deal signed with IDIQ for up to $1 billion [9][10] Cloud Revenue Insights - Cloud revenue growth is expected to be at the low end of guidance, with a 0.7% variance from initial projections [6][22] - The company emphasizes the importance of CCB growth as a more meaningful metric than cloud revenue alone [25][22] - Approximately 40% of SAP's ERP maintenance base is on the RISE journey, indicating significant potential for future cloud revenue growth [27][28] Market Position and Competitive Landscape - SAP is growing at approximately 29% in the PaaS and SaaS segments, outperforming competitors like Workday and Oracle [48] - The company is focused on maintaining a competitive edge through AI integration and enhancing customer experiences [62][67] AI and Transformation Initiatives - SAP views AI as an opportunity to enhance its offerings, with a focus on data management and integration [62][64] - The company is investing in tools to facilitate customer transitions to S/4HANA, aiming to reduce risks and costs associated with migration [36][38] - New AI-driven functionalities are being developed to improve operational efficiency and customer satisfaction [72][74] Future Outlook - SAP aims to achieve Rule of 40 status, balancing growth and profitability, with expectations for revenue growth to accelerate in 2026 and 2027 [52][51] - The company is optimistic about its long-term growth trajectory, driven by cloud conversion and new business opportunities [50][51] Challenges and Risks - The company acknowledges potential challenges in sustaining high growth rates as market conditions evolve [48][50] - There is a recognition of the need for continuous adaptation and innovation to maintain competitive advantages in a rapidly changing market [68][70] Additional Important Insights - SAP's transformation initiatives are seen as essential for long-term success, with a focus on leveraging AI and data analytics to enhance product offerings [15][36] - The company is actively recruiting talent to support its growth strategy, particularly in AI and cloud services [69][70] - SAP's historical expertise in various verticals provides a competitive advantage in developing tailored solutions for customers [67][68]

The European Union will seek feedback on an offer from SAP to settle an investigation into its software management program https://t.co/qoJJCuZMDv ...

Core Insights - Saputo Inc. reported solid financial results for Q2 of fiscal 2026, highlighting strong execution across its global network and effective commercial strategies [2][3][72] Financial Performance - Revenues for Q2 2026 reached $4.721 billion, a slight increase of $13 million or 0.3% compared to Q2 2025, driven by higher sales volumes and prices in North America [3][11] - Adjusted EBITDA for Q2 2026 was $450 million, up $61 million or 15.7%, with an adjusted EBITDA margin of 9.5%, an increase from 8.3% [3][11] - Net earnings totaled $185 million or $0.45 per share, reflecting an increase of $59 million or $0.15 per share compared to the same quarter last year [3][4][11] - Adjusted net earnings were $198 million or $0.48 per share, up $41 million or $0.11 per share from Q2 2025 [11][81] Sector Analysis Canada Sector - Revenues for Q2 2026 were $1.373 billion, up $79 million or 6.1% from Q2 2025, attributed to higher sales volumes in retail, foodservice, and industrial segments [23][24] - Adjusted EBITDA for Q2 2026 was $179 million, an increase of $17 million or 10.5%, with an adjusted EBITDA margin of 13.0% [27][28] USA Sector - Revenues for Q2 2026 were $2.153 billion, down $72 million or 3.2% from Q2 2025, primarily due to lower US dairy commodity market pricing [33][34] - Adjusted EBITDA for Q2 2026 was $167 million, up $22 million or 15.2%, with an adjusted EBITDA margin of 7.8% [37][39] International Sector - Revenues for Q2 2026 were $871 million, down $41 million or 4.5% from Q2 2025, with stable sales volumes but impacted by hyperinflation accounting in Argentina [47][49] - Adjusted EBITDA for Q2 2026 was $79 million, up $25 million or 46.3%, with an adjusted EBITDA margin of 9.1% [52][55] Europe Sector - Revenues for Q2 2026 were $324 million, an increase of $47 million or 17.0% from Q2 2025, driven by higher selling prices and sales volumes [62][63] - Adjusted EBITDA for Q2 2026 was $25 million, down $3 million or 10.7%, with an adjusted EBITDA margin of 7.7% [65][68] Strategic Outlook - The company remains confident in its long-term outlook, anticipating organic sales growth, particularly in the USA Sector, supported by sustained growth in key retail categories and ongoing innovation [72] - Continued focus on cost optimization and operational efficiencies is expected to enhance margins across all sectors [72][79]

Core Insights - Saputo Inc. reported solid financial results for the second quarter of fiscal 2026, with revenues of $4.721 billion, a slight increase of 0.3% compared to the previous year, driven by higher sales volumes and prices in North America and international markets [2][3] - The company achieved an adjusted EBITDA of $450 million, reflecting a 15.7% increase year-over-year, with an adjusted EBITDA margin of 9.5% [3][4] - Net earnings rose to $185 million, or $0.45 per share, up from $126 million, primarily due to higher adjusted EBITDA and a gain on hyperinflation in Argentina [4][9] Financial Highlights - Revenues for the second quarter were $4.721 billion, up $13 million from $4.708 billion in the same quarter last year [3] - Adjusted EBITDA reached $450 million, an increase of $61 million or 15.7%, with a margin improvement from 8.3% to 9.5% [3][4] - Net earnings increased to $185 million, up $59 million from the previous year, with earnings per share rising from $0.30 to $0.45 [4][9] Sector Performance Canada Sector - Revenues increased to $1.373 billion, up 6.1% from $1.294 billion, driven by higher sales volumes in retail, foodservice, and industrial segments [20][21] - Adjusted EBITDA for the sector was $179 million, a 10.5% increase from $162 million, with a margin of 13.0% [23][24] USA Sector - Revenues decreased to $2.153 billion, down 3.2% from $2.225 billion, impacted by lower US dairy commodity prices [28][29] - Adjusted EBITDA rose to $167 million, a 15.2% increase from $145 million, with a margin improvement to 7.8% [32][34] International and Europe Sectors - International Sector revenues were $871 million, down 4.5% from $912 million, while Europe Sector revenues increased to $324 million, up 17.0% [43][58] - Adjusted EBITDA for the International Sector was $79 million, a significant increase of 46.3%, while Europe Sector adjusted EBITDA decreased to $25 million [48][62] Strategic Initiatives - The company emphasized the importance of commercial investments, operational improvements, and cost optimization initiatives in driving performance [2][3] - Continued focus on maximizing returns on investments and strengthening commercial strategies is a priority moving forward [2][3] - The company plans to maintain disciplined capital deployment and expects capital expenditures of approximately $360 million in fiscal 2026 [68]

By Foo Yun Chee BRUSSELS (Reuters) -SAP, Europe's largest software maker, is set to make a formal offer of concessions shortly to ​settle an EU antitrust investigation and stave off a possible hefty fine, people ‌with direct knowledge of the matter said. The case will help EU regulators counter U.S. criticism that they only ‌target U.S. tech giants such as Alphabet, Apple and Meta Platforms that have faced billions of euros in fines. The European Commission, which started an investigation into SAP's sof ...

CARLSBAD, Calif.--(BUSINESS WIRE)-- #3E--3E, a leading global provider of regulatory expertise and intelligent product compliance solutions, today announced the formal extension of its long-term partnership with SAP, reaffirming both companies' commitment to co-innovation and customer success. Under the extended collaboration, 3E will continue to deliver embedded regulatory content for SAP® S/4HANA® for product compliance, while supporting expanded commercial models and initiatives designed to empowe. ...

Core Insights - The collaboration between Snowflake and SAP aims to enhance industry collaboration and standardization through the Open Semantic Interchange initiative [3][4] - The integration allows SAP Business Data Cloud customers to access Snowflake's AI and data capabilities, while Snowflake customers can utilize SAP's data products [5][9] - SAP's cloud revenue increased by 22% in Q3 2025, indicating strong performance and a focus on AI agent development [7] Group 1 - The Open Semantic Interchange initiative seeks to create a vendor-neutral framework for sharing semantic metadata across platforms [3] - Major companies like BNY, Colgate-Palmolive, Walmart, and PepsiCo are implementing AI agents to enhance business objectives [4] - The integration is designed to simplify data sharing and enhance the development of AI applications [9] Group 2 - The partnership combines SAP's expertise in business applications with Snowflake's modern data platform to provide a unified experience [6] - The collaboration is expected to empower customers with greater openness and choice in data management [5] - Snowflake introduced new developer tools to assist enterprises in building and deploying AI applications [9]

Core Viewpoint - Companies are scaling back their expectations for AI agents, recognizing that while AI tools have improved efficiency, fully automated AI agents face significant challenges in deployment, cost, and reliability [1][4][8] Group 1: AI Agent Deployment Challenges - Many enterprises are encountering difficulties with complex AI agents, which often fail to perform adequately, necessitating direct intervention from AI providers to troubleshoot issues [4][5] - For instance, Fnac, a European retailer with annual revenue of $10 billion, struggled with AI customer service agents until they collaborated with AI21 Labs for support, leading to improved performance [4][6] - Companies are realizing that AI models perform well in benchmark tests but require substantial customization to function effectively in real-world environments [5][8] Group 2: Financial Implications and Revenue Growth - The adoption of general-purpose chatbots and AI programming tools has led to revenue growth for companies like OpenAI and Microsoft, with AI-native startups generating an annualized revenue of $23 billion, up from nearly zero three years ago [10][11] - However, calculating the revenue specifically attributed to AI agents remains challenging, as much of the growth for major cloud companies comes from server rentals rather than enterprise AI applications [11][12] - Salesforce reported over $100 million in annual revenue from its Agentforce product, while ServiceNow anticipates reaching $1 billion in revenue by the end of 2026 from its AI software [11][12] Group 3: Realistic Expectations for AI Automation - Executives from various companies emphasize the need for realistic expectations regarding the automation capabilities of AI agents, particularly in critical areas like cybersecurity, which may take years to fully automate [14][15] - Companies are increasingly viewing AI tools as experimental projects rather than immediate revenue-generating investments, with Microsoft suggesting that AI agents should be considered as part of R&D budgets for long-term benefits [17] - Despite the challenges, companies like Cirque du Soleil have successfully implemented AI agents to improve efficiency, demonstrating that while AI may not fully replace human roles, it can enhance productivity [16]

Core Insights - Snowflake has announced a partnership with SAP that will allow its AI platform to be integrated as an SAP solution extension, potentially providing access to SAP's extensive customer base of 440,000 [2][3]. Partnership Overview - The partnership aims to enhance Snowflake's offerings by making its AI platform available to companies utilizing SAP's Business Data Cloud, facilitating access to data embedded in SAP applications [3]. - Snowflake's Executive Vice President of Product expressed excitement about the partnership, viewing it as a significant business opportunity [4]. Revenue Growth Potential - The partnership could potentially increase Snowflake's revenue growth rate by approximately five percentage points, depending on the percentage of SAP customers that adopt Snowflake's services [5]. - An estimated 34,000 customers currently use SAP's Business Data Cloud, and if 5% of them engage with Snowflake, it could significantly elevate Snowflake's revenue growth rate from 32% to 45% in 2026 [16][17]. Benefits for SAP - SAP anticipates that the partnership will provide its customers with greater data accessibility, enhancing their operational efficiency [6]. - The collaboration is expected to broaden choices for SAP customers, complementing existing partnerships with other cloud storage platforms [8]. Customer Use Cases - The partnership offers three primary use cases for customers: those with existing Snowflake data, SAP customers seeking Snowflake access, and hybrid customers [9]. - It aims to streamline data access, reducing the time and costs associated with data retrieval from SAP applications [10][11]. Impact on AI and Customer Experience - The partnership is designed to enhance the utility of generative AI applications by reducing friction in data access, thereby accelerating time to insight and value [12]. - Snowflake's solutions are positioned to improve customer experiences by providing timely and relevant data for customer interactions [13]. Case Study - AstraZeneca has highlighted the benefits of this partnership, emphasizing its role in enhancing data access and analysis for real-time decision-making in the healthcare sector [14][15]. Long-term Growth Outlook - The partnership is expected to increase Snowflake's revenue per customer, as more data access leads to higher computing resource usage and revenue generation [19].

LYON, France & MIDDLETON, Wis.--(BUSINESS WIRE)--Esker, the leading AI Automation Suite for the Office of the CFO, today announced a new strategic partnership with Numen, a leading technology solutions company specializing in SAP digital transformation. The partnership will help enterprises across North and South America transform their finance and operations ecosystems as they prepare for the next wave of SAP modernization. The partnership comes at a pivotal moment as SAP phases out maintenanc. ...