German software giant SAP has officially become Europe’s most valuable company, overtaking Danish pharmaceutical leader Novo Nordisk in market capitalization.
According to financial data, SAP reached a market value of $340 billion earlier this week. Although its shares are up 7% so far in 2025 — slightly behind the 8.3% gain of the broader STOXX 600 index — SAP has delivered a staggering 160% return since the end of 2022, far outpacing the index’s 28% gain over the same period.
Cloud and AI Strategy Drive Success
The company’s pivot to cloud solutions and artificial intelligence has been key to its surge. CFO Dominik Asam stated in 2024 that “the rise of AI has clearly accelerated the transition to cloud solutions.” SAP now has over 27,000 customers actively using AI-powered features across its platforms.
SAP’s flagship offering, the SAP Business Technology Platform (BTP), has become the foundation for enterprises looking to integrate data management, analytics, and application development in the cloud. With more than 40,000 companies using BTP worldwide, SAP is consolidating its position as a leader in enterprise technology.
Strong Cloud Revenue and Strategic Partnerships
In 2024, SAP reported a 23% year-over-year growth in cloud revenue, reaching €13.66 billion. Its cloud-based ERP solution, SAP S/4HANA Cloud, continues to gain traction, with major adoption across industries such as automotive, finance, logistics, and telecommunications.
Strategic alliances have also played a critical role. SAP’s partnership with Microsoft Azure allows customers to combine SAP’s business applications with Azure OpenAI Service, enabling advanced generative AI use cases for business process automation, predictive analytics, and intelligent decision-making.
Record Financial Performance and 2025 Outlook
SAP closed 2024 with total revenues of €32.9 billion, an 11% increase over the previous year. The company has set a target to surpass €36 billion in revenues by the end of 2025, driven by expanding demand for cloud services and AI-driven business applications.
Sustainability at the Core
Beyond financial and technological achievements, SAP remains committed to environmental responsibility. The company is part of the Dow Jones Sustainability Index and has committed to becoming carbon-neutral across its entire value chain by 2030.
Overtaking Novo Nordisk
Novo Nordisk, which had become Europe’s largest company in September 2023 thanks to the success of its obesity treatment Wegovy, has recently underperformed due to disappointing trial data for its next-generation drug, Cagrisema. This has allowed SAP to reclaim the top spot.
A German Tech Powerhouse with Global Reach
Founded in 1972 in Walldorf, Germany, SAP has grown into a global powerhouse with customers in over 180 countries. Its solutions are used by some of the world’s leading enterprises to manage finance, supply chains, procurement, human resources, and customer relationships.
SAP’s ability to adapt and lead in the cloud and AI era positions it not only as Europe’s most valuable company but also as one of the key players shaping the future of global business technology.
Source: Revista Cloud
