SAP surpasses Novo Nordisk to become Europe's most valuable public company

SAP SE has overtaken Danish weight-loss drug maker Novo Nordisk A/S to become Europe’s most valuable public company, driven by strong investor confidence in its cloud-based software offerings.

SAP’s shares rose by 1.6 percent, pushing the German tech giant's market capitalization to approximately €314 billion ($340 billion), Caliber.Az reports citing foreign media.

This milestone came as shares of Novo Nordisk, which had long held the title, declined by 16 per cent in 2025, amid disappointing results from trials of its next-generation weight-loss drug, CagriSema.

SAP’s impressive growth can be attributed to the increasing demand for cloud-based solutions, with businesses migrating from traditional on-site servers to cloud infrastructures. This transition has enabled SAP to offer more lucrative products bundled with advanced artificial intelligence features, contributing to substantial revenue growth. Over the past year, SAP’s stock price has surged by 42 per cent, as the company capitalizes on this evolving market trend.

Analysts project that SAP’s sales will rise by 12 per cent in 2025, which would mark the company’s fastest annual growth rate in the last decade. Additionally, operating profits are expected to grow even more rapidly, driven by a restructuring program announced earlier this year.

The success of SAP stands in contrast to some other prominent European firms, such as ASML Holding NV, which has faced challenges from weaker orders from key clients and growing restrictions on chip equipment exports to China. While these issues have hampered some companies, SAP’s continued growth underscores the increasing importance of cloud computing and AI in driving future business success.

By Vafa Guliyeva