Core Viewpoint - SAP SE is identified as a significant AI stock to monitor, with a maintained Buy rating despite a slight reduction in price target to EUR316.00 from EUR320.00, reflecting a structural and durable long-term growth outlook [1][3]. Group 1: Growth Drivers - SAP's growth is driven by software upgrade and infrastructure migration cycles, positioning it as a beneficiary of artificial intelligence due to its critical data ownership and monetization potential through a comprehensive AI product suite, including SAP Joule and Analytics agents [2][3]. - The company is expected to achieve approximately EUR0.5 billion in AI efficiencies and up to 30% efficiency gains in R&D, supporting operating leverage [3]. Group 2: Market Performance - SAP shares have underperformed the SX8P index by 5 percentage points since the Q2 earnings report in July, with cautious sentiment regarding short-term bookings from recent conferences [1][3]. - Despite the underperformance, SAP remains a top pick for large-cap stocks and is included in the "25 stocks for 2025" and the Europe 1 list of top investment ideas [3]. Group 3: Financial Forecasts - The firm has adjusted its forecasts for foreign exchange impacts, estimating a 50 basis points effect on 2025 revenue and a 100 basis points effect on 2026 revenue [3]. - The price objective has been revised down to EUR316 from EUR320, with the American Depositary Receipt (ADR) target adjusted to $371 from $376, maintaining a Buy rating based on a 20x 2026E EBITDA multiple for predictable growth [3].

Financial Performance - Cloud revenue increased by 27% (26% @cc) to €4993 million[6, 19, 23, 30] - Cloud ERP Suite revenue grew by 34% (33% @cc) to €4251 million[6, 19] - Current cloud backlog increased by 28% (29% @cc) to €18202 million[6, 19] - Total revenue increased by 12% (11% @cc) to €9013 million[19, 23, 30] - Cloud and software revenue increased by 14% (13% @cc) to €7938 million[19, 23, 30] - Non-IFRS operating profit increased by 60% (58% @cc) to €2455 million[19, 30] - Free cash flow increased by 36% to €3583 million[24, 36] Regional Performance - APJ cloud revenue increased by 39% (39% @cc)[21] - EMEA cloud revenue increased by 30% (29% @cc)[21] - Americas cloud revenue increased by 21% (19% @cc)[21] Outlook - The company expects cloud revenue to be between €216 billion and €219 billion @cc, a growth of 26%-28%[25] - The company expects cloud and software revenue to be between €331 billion and €336 billion @cc, a growth of 11%-13%[25]