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Investing.com - Bernstein has reiterated an Outperform rating and EUR294.00 price target on SAP (NYSE:SAP) stock ahead of the company’s third-quarter earnings report.
The German software giant is scheduled to release its Q3 2025 results on Wednesday, October 22, after market close, with Bernstein’s forecasts exceeding Visible Alpha consensus estimates across key metrics.
Bernstein expects SAP to maintain its fiscal year 2025 guidance at constant currencies, supported by strong S/4 product migration cycle and cloud backlog that should offset any potential demand weakness.
The research firm addressed growing investor concerns about Generative AI becoming a headwind for software companies, noting that SAP is "the least exposed to GenAI eating its business" among software companies in Bernstein’s coverage due to the complexity of ERP systems and customers’ existing investments in customization.
Rather than posing a threat, Bernstein views GenAI as an incentive for SAP customers to migrate to cloud solutions, particularly the Cloud ERP suite, though it is not yet a significant revenue driver for the company.
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