What SAP (XTRA:SAP)'s Enterprise AI Assistant Launch Means for Shareholders

• At its inaugural SAP Connect event in October 2025, SAP unveiled a new suite of enterprise-grade AI assistants within Joule and launched SAP Business Data Cloud Connect, enabling real-time, bidirectional data sharing with partners like Databricks and Google Cloud.
• This marks a shift toward deeper AI integration and data connectivity across the SAP ecosystem, positioning the company to accelerate adoption of intelligent business processes for global enterprises.
• We'll explore how SAP’s launch of enterprise-wide AI-powered assistants may strengthen its long-term growth outlook and competitive position.

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SAP Investment Narrative Recap

To be a shareholder in SAP, you must believe the company can translate its leadership in enterprise software and accelerating adoption of AI-powered cloud solutions into sustained revenue and margin growth, despite persistent global uncertainty. The recent launch of enterprise-grade AI assistants and improved data connectivity, while indicative of SAP’s innovation, does not materially shift the most pressing short-term catalysts, ongoing cloud migration and AI adoption, or mitigate the chief risks posed by regulatory requirements and evolving customer preferences for flexible cloud architectures.

Among SAP’s recent announcements, the introduction of SAP Business Data Cloud Connect stands out as especially relevant. By enabling real-time, secure data sharing with partners like Databricks and Google Cloud, SAP directly addresses complexity in its core offerings and supports the catalyst of deeper integration into customer operations, which may help underpin continued cloud migration and cross-sell opportunities.

Yet, in contrast, investors should be aware that the shift towards modular, best-of-breed cloud rivals still puts SAP at risk of customer attrition and margin pressure if...

Read the full narrative on SAP (it's free!)

SAP's outlook anticipates €50.9 billion in revenue and €10.3 billion in earnings by 2028. This is based on an assumed annual revenue growth rate of 12.3%, and represents a €3.8 billion increase in earnings from the current €6.5 billion.

Uncover how SAP's forecasts yield a €291.91 fair value, a 27% upside to its current price.

Exploring Other Perspectives

Twenty Simply Wall St Community members estimate SAP’s fair value from €234.97 to €345, with varied growth outlooks. While many expect rapid adoption of SAP's AI solutions to drive value, ongoing global regulatory and competitive risks remain top of mind, prompting wide-ranging expectations for future performance.

Explore 20 other fair value estimates on SAP - why the stock might be worth just €234.97!

Build Your Own SAP Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your SAP research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free SAP research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SAP's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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