Let's talk about these acquisitions. So, were you acquiring the companies and the talent came with them or was this specifically focused on the talent at those companies and integrating them into Unifor. Well, we're very excited first of all with these two acquisitions.Uh they bring a lot of technology to us and the people, the talent. But why were these important for us right now. The state of AI adoption in the in business is at a very interesting point.There are some industry reports talking about AI age ...

Core Insights - SAP SE will participate in two upcoming events featuring CFO Dominik Asam, including the Goldman Sachs Communacopia + Technology Conference and the Jefferies Structural Winners Series [1][2] Group 1: Event Participation - SAP executives will hold a Fireside Chat at the Goldman Sachs Communacopia + Technology Conference on September 9, 2025, from 5:50 pm to 6:25 pm CEST [1] - A second Fireside Chat will take place at the Jefferies Structural Winners Series on September 16, 2025, from 5:00 pm to 5:45 pm CEST [2] Group 2: Company Overview - SAP is a global leader in enterprise applications and business AI, with over 50 years of experience in uniting business-critical operations across various functions such as finance, procurement, HR, supply chain, and customer experience [3]

Financial Data and Key Metrics Changes - Total revenues for Q4 were $1,310,000,000, with organic year-over-year growth excluding AMC, IP rights, and DXC [9] - For the full fiscal year 2025, total revenues were $5,170,000,000, down 3% excluding AMC and approximately 1% excluding IP rights and DXC [10] - Adjusted EBITDA for Q4 was $444,000,000, representing a 34% margin, significantly up excluding AMC [9] - Free cash flow for the year was $687,000,000, exceeding the high end of the target range [13] - Adjusted EPS was $3.82, showing strong growth excluding AMC [13] Business Line Data and Key Metrics Changes - Cloud revenue for Q4 was $475,000,000, reflecting a 2% year-over-year growth [9] - Cloud bookings surged to $238,000,000, marking a 32% year-over-year increase [9] - Cybersecurity accounted for 30% of cloud revenues, with content and Business Network also at 30%, while OSM and DevOps made up 10% each [11] - Content, OSM, and DevOps each grew faster than 10% year-over-year, while cybersecurity experienced a negative growth of 4% [11] Market Data and Key Metrics Changes - Total cloud RPO increased by 13%, with current cloud RPO up 8% and long-term RPO up 17% [12] - Cloud renewal rate stood at 96% at the end of Q4 [12] - The company reported a strong annual recurring revenue of approximately 81% in Q4, up 20 basis points year-over-year [47] Company Strategy and Development Direction - The company aims to expand its competitive advantage through Business AI, Business Clouds, and Business Security, with a focus on delivering total revenue growth through compelling solutions [7] - The medium-term business model targets approaching the "Rule of 40," balancing revenue growth with adjusted EBITDA margin [23] - The company plans to grow its annual dividend by 5% and repurchase $300,000,000 of its stock in fiscal year 2026 [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in fiscal year 2026, projecting total revenue growth of 1% to 2% and cloud revenue growth of 3% to 4% [19] - The geopolitical environment is seen as a driver for customers to invest in sovereign clouds, which is expected to positively impact bookings growth [56] - Management acknowledged challenges in fiscal year 2025 but emphasized a strong outlook for fiscal year 2026, driven by cloud and AI innovations [15] Other Important Information - The company completed a significant divestiture of its mainframe business and executed a large business optimization program [6] - A new $30,000,000 share repurchase program was announced alongside a return to M&A activities [6] Q&A Session Summary Question: What are you seeing from end demand and customer behavior given uncertainties? - Management noted a strong trend towards sovereign cloud and an increase in customer control over deployments, which is seen as a positive driver for growth [56] Question: How much of the maintenance decline is operational, and can pricing be adjusted? - The decline in maintenance is improving due to performance and growth programs, with a focus on core operating metrics showing positive trends [60] Question: What cloud business units are seeing outsized growth? - All cloud business units are experiencing growth, with content, OSM, and DevOps growing faster than 10% year-over-year, while cybersecurity is expected to return to growth [72][73] Question: How much of the fiscal year 2026 growth is visible in RPO? - Current cloud RPO is approximately 60% of revenues, providing strong visibility for the projected growth [76] Question: What conditions would lead to M&A activities? - The company is interested in acquisitions that align strategically and financially, with a focus on cloud and high-growth areas [78] Question: Where is the company investing the most currently? - The company is focusing investments in content, security, and OSM, with an aim to return Business Network to growth [83]

Core Insights - SAP SE reported strong financial results for Q2 2025, highlighting significant growth in cloud revenue and profitability driven by customer demand and AI innovations [2][3][4] Financial Performance - Total revenue for Q2 2025 reached €9.03 billion, an increase of 9% year-over-year, with a 12% increase at constant currencies [5][12] - Cloud revenue grew by 24% to €5.13 billion, with a 28% increase at constant currencies [8][11] - SaaS/PaaS revenue increased by 26% to €5.05 billion, with a 30% increase in Cloud ERP Suite revenue to €4.42 billion [5][11] - IFRS operating profit rose to €2.46 billion, reflecting a growth of over 100% compared to the previous year [14] - Earnings per share (basic) increased by 91% to €1.45 [15] Operational Highlights - The current cloud backlog grew by 22% to €18.1 billion, with a 28% increase at constant currencies [8][11] - Operating cash flow for Q2 was up 71% to €2.58 billion, while free cash flow increased by 83% to €2.36 billion [16] - The share of more predictable revenue increased to 86%, up 2 percentage points from the previous year [12] Strategic Developments - SAP's "RISE with SAP" initiative continues to attract global customers, indicating strong demand for business transformation solutions [19][20] - Partnerships with Accenture and Alibaba Group were announced to enhance cloud transformation efforts [24][25] Outlook - SAP maintains its financial outlook for 2025, expecting cloud revenue to reach €21.6 – 21.9 billion, representing a growth of 26% to 28% at constant currencies [26][27] - The company anticipates a slight deceleration in current cloud backlog growth for 2025 [27]

Core Insights - SAP SE is set to report its second-quarter 2025 results on July 22, with earnings expected at $1.63 per share, reflecting a 38% increase year-over-year, and revenues projected at $10.4 billion, indicating a 16.47% rise from the previous year [1] Financial Performance - SAP has consistently surpassed earnings estimates in the last four quarters, achieving an average earnings beat of 10%. The company's stock has increased by 56.5% over the past year, significantly outperforming the Computers - Software industry, which grew by 21.4% [2] Cloud Transformation and AI Strategy - The ongoing cloud transformation and AI-driven growth strategy are expected to positively impact SAP's second-quarter performance. The company's cloud revenues rose by 27% year-over-year to €4.99 billion in Q1, with Cloud ERP Suite revenues growing by 34%, making up 85% of total cloud revenues [2][9] - SAP is focusing on Business AI as a key growth driver through 2027, with plans to introduce flexible licensing models for easier transitions to cloud-based versions of its business suite [3] - Significant investments in AI are planned for 2025, with over 30,000 developers dedicated to enhancing AI capabilities and aiming to increase user productivity by 30% by year-end [5][9] Generative AI and Productivity Enhancements - SAP is optimistic about the generative AI trend, expecting it to positively influence future revenues. The company has integrated over 1,300 skills into its AI co-pilot Joule, covering 80% of business and analytical transactions by the end of 2024. AI-assisted contract validation has reduced average contract booking time by 75%, while AI-powered quote-to-cash automation has increased productivity tenfold [4] Competitive Positioning - To maintain a competitive edge in the IT services industry, SAP continues to invest in technological innovations, which may increase research and development costs [7]

Core Insights - SAP SE has introduced innovations and partnerships aimed at enhancing business productivity by up to 30 percent through the use of Business AI [1][2] - The generative AI assistant Joule is designed to provide personalized answers and streamline workflows across various applications [2][3] AI Innovations - Joule can assist users throughout their workday, providing real-time insights and anticipating needs while adhering to ethical AI guidelines [3] - A collaboration with Perplexity enhances Joule's capabilities to answer complex business questions using structured and unstructured data [4] - An expanded library of Joule Agents is introduced to optimize business processes across various functions such as customer experience and supply chain management [5] AI Development and Applications - SAP has launched an AI Foundation that serves as an operating system for developing and scaling AI solutions, allowing for quicker creation of effective AI prompts [6] - New intelligent applications in SAP Business Data Cloud are designed to continuously learn and optimize business processes using critical data [7] Strategic Partnerships - SAP is partnering with Palantir to support joint customers in their cloud migration and modernization efforts, facilitating a harmonized data foundation [8] Cloud Solutions - SAP Business Suite packages are introduced to simplify cloud solution adoption for customers, allowing for customization to meet specific business needs [9] - A new solution leveraging Joule aims to accelerate cloud transition, potentially delivering up to 35 percent faster time to value [10]

Core Insights - Microsoft has a strong competitive advantage with its Windows operating system, which is considered attractive despite competition from the Apple ecosystem [1] - The company is characterized by growth in revenue, earnings, and free cash flow, making it appealing for investment [1] - Favorable valuations, high free cash flow margins, and generous share repurchase programs are key investment criteria for Microsoft [1] Company Characteristics - Microsoft is recognized for its excellent growth prospects, which contribute to its attractiveness as an investment [1] - The company has a history of steady growth, which is a preferred trait for investors [1] - Dividend stocks and companies with robust share repurchase programs are highlighted as favorable investment options [1]

Group 1: Netflix, Inc. (NFLX) - Netflix's shares have outperformed the Zacks Broadcast Radio and Television industry over the past year, increasing by 58.1% compared to the industry's 45.8% [4] - The company is benefiting from a growing subscriber base, with about two hours of viewing per member per day, indicating strong member retention [4] - The launch of a first-party ad tech platform in Canada and other countries in 2025 is expected to double ad revenues year-over-year, with raised revenue guidance for 2025 between $43.5 billion and $44.5 billion [5] Group 2: SAP SE (SAP) - SAP's shares have outperformed the Zacks Computer - Software industry over the past year, increasing by 46.4% compared to a decline of 2.9% in the industry [7] - The company is experiencing growth due to rising cloud demand, particularly from its Rise with SAP and Grow with SAP solutions [7] - SAP's revised 2025 outlook expects cloud and software sales in the range of €33.1 billion to €33.6 billion, up from a previous forecast of €29.83 billion [9] Group 3: Shell plc (SHEL) - Shell's shares have declined by 8.1% over the past year, while the Zacks Oil and Gas - Integrated - International industry saw a decline of 12.7% [10] - The company faces challenges in its Renewable segment and has a sub-100% reserve replacement ratio, indicating difficulties in replenishing produced energy [10] - Despite these challenges, Shell remains a global leader in liquefied natural gas, leveraging its strong LNG position to generate consistent earnings [11] Group 4: Preformed Line Products Co. (PLPC) - Preformed Line Products has outperformed the Zacks Electronics - Miscellaneous Products industry over the past year, increasing by 13.8% compared to a decline of 50.3% in the industry [13] - The company has a robust balance sheet with $57.2 million in cash and $56.2 million in free cash flow, supporting liquidity and potential M&A [13] - Global diversification offsets U.S. market weakness, with strong growth in EMEA, Asia-Pacific, and The Americas [14] Group 5: ImmuCell Corp. (ICCC) - ImmuCell shares have outperformed the Zacks Medical - Products industry over the past six months, increasing by 48.7% compared to a decline of 5.7% in the industry [16] - The company is experiencing strong operational recovery, with fourth quarter and full-year 2024 product sales rising by 52% year-over-year [16] - Gross margin improved to 36.5% in the fourth quarter, and EBITDA turned positive at $1.1 million for the year [17]

Core Insights - OpenText has launched Project Titanium X, integrated with Cloud Editions 25.2, marking a significant advancement in their Business Clouds, Business AI, and Business Technology offerings [1][2][4] Product Features - Cloud Editions 25.2 provides a comprehensive suite of enterprise capabilities focused on process automation, data management, security, and AI, aimed at enhancing growth and productivity for organizations of all sizes [3][5] - The platform introduces various specialized solutions, including OpenText Content Management for Guidewire for insurance processes, Core Threat Detection & Response for cybersecurity, and Trading Grid Command Center for supply chain analytics [6][7] - Enhanced AI support is provided through OpenText Aviator, which integrates AI capabilities across applications to streamline workflows and improve operational efficiency [9] Strategic Goals - The release aims to empower organizations to create a limitless digital workforce, augmenting human capabilities with AI agents to improve productivity and innovation [4][7] - OpenText emphasizes seamless multi-cloud integration, ensuring smooth operations across major cloud platforms and compliance with global standards, achieving 99.99% cloud availability [7][8] Market Position - OpenText positions itself as a leader in Information Management software, offering a comprehensive suite of solutions to address complex global challenges [11]

For Immediate ReleasesChicago, IL – March 7, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include UnitedHealth Group Inc. (UNH) , SAP SE (SAP) , Toyota Motor Corp. (TM) and Better Choice Company Inc. (BTTR) .Here are highlights from Friday’s Analyst Blog:Top Analyst Reports for UnitedHealth, SAP & ToyotaThe Zacks Resea ...