Is SAP SE (SAP) a Resilient Large-Scale Software Business Model?

4 days ago 4

Soumya Eswaran

Wed, March 18, 2026 astatine 7:44 AM CDT 3 min read

Polen Capital, an concern absorption company, released its fourth-quarter capitalist missive for “Polen International Growth Strategy”. A transcript of the missive tin beryllium downloaded here. In 2025, overseas equity markets reached their highest returns successful much than a decade, whereas Polan International Growth had level returns. This was not attributed to weakening concern fundamentals among its holdings, but the market’s penchant for cyclically delicate businesses. The strategy seeks to put successful companies with enduring competitory strengths, precocious returns connected invested capital, and accordant earnings. The Strategy returned -2.21% (gross) and -2.52% (net) successful Q4 compared to 5.05% instrumentality for MSCI ACWI (ex-USA). For 2025, the Strategy returned 0.68% (gross) and -0.52% (net) compared to 32.39% instrumentality for the Index. In addition, delight cheque the Strategy’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, Polen International Growth Strategy highlighted stocks similar SAP SE (NYSE:SAP). Headquartered successful Walldorf, GermanySAP SE (NYSE:SAP) is simply a starring endeavor exertion and concern solutions provider. On March 17, 2026, SAP SE (NYSE:SAP) banal closed astatine $190.12 per share. One-month instrumentality of SAP SE (NYSE:SAP) was -7.35%, and its shares mislaid 29.96% implicit the past 52 weeks. SAP SE (NYSE:SAP) has a marketplace capitalization of $223.56 billion.

Polen International Growth Strategy stated the pursuing regarding SAP SE (NYSE:SAP) successful its 4th fourth 2025 capitalist letter:

"The Portfolio’s apical comparative and implicit detractors were monday.com, MercadoLibre, and SAP. SAP SE (NYSE:SAP) came nether immoderate unit successful the 4th contempt unreality gross maturation coming successful up of expectations and a inactive resilient accumulation successful backlogs. We proceed to presumption SAP arsenic 1 of the much resilient large-scale bundle concern models arsenic it is mission-critical constituent of customers’ day-to-day operations. Given its beardown marketplace position, immense spouse ecosystem, balanced maturation crossed caller and existing customers, precocious recurring revenues, and improving borderline profile, we judge SAP is good positioned to proceed delivering astatine slightest mid-teens net maturation for galore years to come."

SAP SE (SAP)’s Strategic Pivot Drives Optimism - JPMorgan Reaffirms Overweight Rating

SAP SE (NYSE:SAP) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 36 hedge money portfolios held SAP SE (NYSE:SAP) astatine the extremity of the 4th quarter, up from 34 successful the erstwhile quarter. While we admit the imaginable of SAP SE (NYSE:SAP) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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