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Salesforce And Oracle Rival SAP Logs Growth Amid EU AI Cloud Launch And Higher Q3 Cloud Revenue

Benzingaβ€’December 04, 2025 at 12:24 PMβ€’Full Content
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Detected Companies & Sentiment

SAP SE
"strong growth momentum"
8
Salesforce, Inc.
"positive momentum"
8

Gist

SAP posts elite growth and strong cloud performance despite underperforming stock, driven by EU AI Cloud launch and robust Q3 results.

LLM Summary

SAP has achieved top-decile growth, with a 27% increase in cloud revenue and backlog, bolstered by its EU AI Cloud launch and strategic partnerships. Despite strong fundamentals and a high quality score, the stock remains underperforming, rising only 0.29% YTD. The divergence highlights solid operational health amid weak price momentum.

Full Article Content

SAP SE (NYSE: SAP) has secured a position in the top tier of fundamental expansion, with its growth ranking climbing into the top decile.

This improvement signals that SAP is outperforming 90% of its peers in historical earnings and revenue expansion, highlighting robust operational health even as the stock faces downward price pressure.

This divergence suggests that while the stock is currently expensive relative to assets and experiencing weak price volatility, the underlying business is growing at an elite pace. Additionally, SAP holds a quality score of 84.25, reflecting strong profitability relative to peers.

Catalysts: Sovereign AI And Cloud Revenue

The improved growth standing correlates with significant operational strides. On Nov. 28, SAP launched its EU AI Cloud to boost European digital sovereignty, integrating with partners like Cohere and Mistral AI to serve regulated industries.

This strategic pivot complements strong third-quarter financial results. While total revenue slightly missed estimates, SAP reported a 27% increase in cloud revenue and a 27% rise in its cloud backlog at constant currencies.

SAP Underperforms In 2025

Despite strong fundamentals, the stock's price action remains bearish. It has risen only 0.29% year-to-date and dropped by 3.86% over the year.

On Wednesday, the stock ended 0.87% higher at $243.82 apiece. It was trading 0.65% higher in premarket on Thursday.

Metadata

Author:
Rishabh Mishra
Image URL:
https://cdn.benzinga.com/files/imagecache/250x187xUP/images/story/2025/12/04/Walldorf--Germany---Dec-12--2021-Sap-Com.jpeg
Tickers:
CRM, SAP
Updated At:
December 04, 2025 at 8:24 AM
Benzinga Channels:
Earnings, Equities, Large Cap, News, Eurozone, Markets, Tech, Trading Ideas, General
Teaser:
Salesforce rival SAP logs a growth ranking jump to the 90th percentile amid its EU AI Cloud launch and robust Q3 cloud revenue results.
Benzinga Stocks:
CRM (NYSE), SAP (NYSE)
Benzinga Article ID:
49205155