German software developer SAP has overtaken Danish pharmaceutical company Novo Nordisk, becoming the most valuable company in Europe, the Financial Times reports.
- On Monday, SAP shares grew by 1.5%, bringing the company's market capitalization to more than €314 billion, while Novo Nordisk shares fell 1.7%.
- Overall, SAP's share price has risen more than 40% this year, thanks to customers' successful transition to cloud services and a wave of AI enthusiasm.
- This contributed to the overall strength of Germany's DAX index, which outperformed most global equity markets.
- Novo Nordisk, on the other hand, has lost almost half of its market value since last summer. The latest trial results for its anti-obesity drug CagriSema disappointed investors.
Last year, SAP overtook Dutch semiconductor equipment maker ASML as Europe's largest technology company.
The company now accounts for a larger share of the German index than the country's historic automotive sector, which includes Volkswagen and Mercedes-Benz.
About SAP
Founded in 1972 by five former IBM employees, SAP has successfully transformed its business in recent years, moving away from selling on-premises licenses in favor of cloud-based service contracts that provide more stable and profitable revenue.
SAP's cloud revenue is expected to grow 29% this year, while total revenue is expected to increase 13% to €38.5 billion. Analysts also noted the potential of a new product SAP introduced last month that allows customers to connect their data with third-party data and analyze it with AI agents.
