MEXICO CITY, June 2, 2025 /PRNewswire/ - DXC Technology, a leading Fortune 500 global technology services provider, today announced the relaunch of its DXC Fast RISE with SAP service in Mexico. This initiative gains new momentum following the recent availability of RISE with SAP, now hosted on Microsoft Azure, expanding opportunities to accelerate a cloud-based economy in Mexico through Microsoft's hyperscale datacenter region: Central Mexico.This announcement marks a significant milestone for Mexican organ ...

Core Viewpoint - SAP stock is currently near its 52-week high, raising questions about whether to hold or sell, with a focus on evaluating the company's strengths and weaknesses [1] Group 1: Cloud Business Performance - SAP's cloud business is a significant driver of growth, with a cloud backlog increasing by 28% to €18.2 billion in Q1 [2] - Cloud revenues rose 27% year-over-year to €4.99 billion, with Cloud ERP Suite revenues growing 34% to €4.25 billion, making up 85% of total cloud revenues [2] - The launch of SAP Business Data Cloud aims to unify enterprise data and has already resulted in 20 deals in Q1 [4] Group 2: Revenue Predictability and Growth Outlook - 86% of SAP's total revenues are now classified as predictable, enhancing long-term earnings visibility [3] - Management projects cloud revenues for the year to be between €21.6 billion and €21.9 billion, reflecting a year-over-year increase of 26-28% [8] Group 3: AI Investments and Future Prospects - SAP is optimistic about the impact of generative AI on future revenues, with over 1,300 skills integrated into its AI co-pilot [9] - The company plans to invest heavily in AI, with more than 30,000 developers focused on enhancing its AI capabilities by 2025 [9] Group 4: Challenges and Market Conditions - SAP faces challenges with declining software license revenues, which fell 10% year-over-year to €0.18 billion, and a 1% decline in services revenue to €1.07 billion [10] - The company is navigating a volatile macroeconomic environment, increasing costs, and stiff competition in the cloud sector [10] Group 5: Investment Strategy and Analyst Outlook - Analysts have raised earnings estimates for SAP over the past 60 days, with increases of 1.9% for the current quarter and 3.3% for the current year [11][13] - Despite a strong growth outlook, SAP's premium valuation with a forward P/E ratio of 41.06X compared to the industry's 31.72X suggests caution for new investors [15]

Core Insights - SAP SE has partnered with Accenture to launch ADVANCE, a cloud transition solution for companies with annual revenues up to $5 billion, enabling rapid implementation in six to twelve months [1][2] - ADVANCE offers preconfigured, industry-specific solutions that integrate SAP Business Suite with Accenture's operational expertise, streamlining finance, procurement, supply chain, and workforce management [2][4] Product Features - ADVANCE packages reduce system complexity and operational costs by incorporating preconfigured industry processes and best practices [5] - The offering emphasizes speed and agility, providing industry-tailored accelerators for quick business outcomes and transparent pricing for efficient budget management [6] - Integration of AI agents and predictive analytics allows businesses to adapt to market changes and enhance decision-making [7] Financial Performance - SAP's cloud revenues reached €4.99 billion, a 27% year-over-year increase, with Cloud ERP Suite revenues growing 34% to €4.25 billion, accounting for 85% of total cloud revenues [9] - For the year, SAP anticipates cloud revenues between €21.6 billion and €21.9 billion, reflecting a 26-28% increase year-over-year [12] Market Outlook - SAP maintains a positive growth outlook despite global uncertainties, with expectations for cloud and software revenues between €33.1 billion and €33.6 billion, indicating an 11-13% year-over-year increase [12][11] - The company's stock has performed well, with a 54.3% increase over the past year compared to the industry's 9.6% growth [13]