$SAP SE (SAP.US)$ exceeded earnings expectations in its latest quarter, positioning itself as a foundational player in the AI sector alongside industry leaders
$NVIDIA (NVDA.US)$ and
$Microsoft (MSFT.US)$ , according to Wedbush analyst Dan Ives. He highlighted that SAP's transformation to cloud-based services is accelerating, with
45% of its business now in the cloud, projected to reach
70% by the end of next year.
Ives emphasized that SAP’s growth reflects the broader AI revolution, as enterprise software providers increasingly integrate AI capabilities. SAP reported adjusted earnings of $1.33 per share, slightly beating estimates, though its quarterly revenue of $9.16 billion was just below expectations.
Despite the positive results, SAP is facing scrutiny from a Department of Justice investigation into allegations of overcharging U.S. government agencies, which could impact its reputation and operations.