SAP Business Data Cloud Gains Traction as AI Strategy Pillar

Earnings
โดย Zacks Investment Research·DE·Read original
Summary · why it matters

SAP SE's SAP Business Data Cloud is emerging as a key pillar of the company's AI strategy, with AI and the data platform featuring in more than 90% of SAP's 50 largest deals in the second quarter. SAP's current cloud backlog increased 26%, while cloud revenues grew 24% to €6.3 billion in the quarter. The company is strengthening the platform through Dremio's Apache Iceberg-native technology, Reltio's data governance, and Prior Labs' tabular AI capabilities, with management planning to monetize agentic AI through value-priced agents. SAP's new RISE with SAP and GROW with SAP offering saw strong uptake, with customers achieving up to 30% lower ERP migration costs. Shares of SAP have gained 11.7% in the past six months, underperforming the Zacks Computer and Technology sector's 18.7% appreciation, and the stock trades at a trailing 12-month price-to-earnings ratio of 28.53X versus the Zacks Computer - Software industry average of 26.83X.

Impact on stocks 3

Cloud & Digital Infrastructure▲ · 2 stocks
SAP SE
SAP
▲ PositiveDemandrelevance

SAP Business Data Cloud is central to AI strategy, with AI/data in 90% of top deals and strong cloud growth.

Artificial Intelligence▲ · 1 stocks

Theme Impact 3

Off-coverage companies 1

Prior LabsPrivate▲ Positive
Technologyrelevance

Prior Labs' tabular AI capabilities are integrated into SAP's platform, enhancing its offering.

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