SAP vs Salesforce

This page compares SAP and Salesforce, examining their business models, financial performance, and market context to help readers understand how the firms operate within the technology and enterprise software sectors. The comparison remains neutral and accessible, focusing on structure, strategy, and market positioning for both companies. Educational content, not financial advice.

This page compares SAP and Salesforce, examining their business models, financial performance, and market context to help readers understand how the firms operate within the technology and enterprise ...

Comparison Snapshot

Key Financial Metrics

SAP

Metric

CRM

$254.86B

Market Cap

$197.53B

67.18%

Potential Profit

54.31%

Buy

Analyst Rating

Buy

Why It's Moving

SAP Stock Craters on Cloud Backlog Miss Despite Earnings Beat and Massive Buyback.

Q4 EPS surged 16% on 30% cloud bookings jump, highlighting robust AI demand, yet cloud backlog grew slower than expected, fueling doubts on momentum.
New €10 billion share repurchase through 2027 signals management confidence in cash flow, but conservative 2026 outlook for 23-25% cloud revenue growth fell short of lofty hopes.
Dismissal of three executives over stolen trade secrets adds governance clouds, amplifying the post-earnings plunge amid rising short interest.

Sentiment:

🐻Bearish

Salesforce's AI Momentum Sparks Hopes for CRM Rebound Despite Recent Slump.

Agentforce generated $540M in recurring revenues in Q3 FY26, surging 330% year-over-year, with over 50% from existing clients highlighting strong cross-sell success.
AI tools drove $1.4B in combined recurring revenues, up 114%, underscoring Salesforce's edge in the booming enterprise AI ecosystem.
Wall Street consensus sets a $327 median price target with 'Moderate Buy' rating, backed by institutional accumulation and a confirmed price bottom near $225.

Sentiment:

🐃Bullish

SAP Stock Craters on Cloud Backlog Miss Despite Earnings Beat and Massive Buyback.

Q4 EPS surged 16% on 30% cloud bookings jump, highlighting robust AI demand, yet cloud backlog grew slower than expected, fueling doubts on momentum.
New €10 billion share repurchase through 2027 signals management confidence in cash flow, but conservative 2026 outlook for 23-25% cloud revenue growth fell short of lofty hopes.
Dismissal of three executives over stolen trade secrets adds governance clouds, amplifying the post-earnings plunge amid rising short interest.

Sentiment:

🐻Bearish

Salesforce's AI Momentum Sparks Hopes for CRM Rebound Despite Recent Slump.

Agentforce generated $540M in recurring revenues in Q3 FY26, surging 330% year-over-year, with over 50% from existing clients highlighting strong cross-sell success.
AI tools drove $1.4B in combined recurring revenues, up 114%, underscoring Salesforce's edge in the booming enterprise AI ecosystem.
Wall Street consensus sets a $327 median price target with 'Moderate Buy' rating, backed by institutional accumulation and a confirmed price bottom near $225.

Sentiment:

🐃Bullish

Investment Analysis

SAP

Pros

SAP has delivered an 18.7% year-to-date stock price increase in 2025, outperforming Salesforce and showing market resilience.
SAP maintains a strong competitive position as a leading global enterprise application software provider with diverse operational reach.
SAP’s stock risk metrics indicate somewhat lower than normal risk, supported by a higher percentile trading range relative to its historical levels.

Considerations

SAP’s current analyst recommendations show mixed signals, with some platforms rating its shares as a 'Sell,' reflecting uncertainty in near-term outlook.
SAP’s stock performance, while positive, has seen some recent downward pressure with a 3.22% decline noted against volatile markets.
SAP faces intense competition from other software giants and must sustain growth in a highly fragmented and competitive CRM and enterprise software market.

Salesforce

CRM

Pros

Salesforce dominates the salesforce automation market, controlling around 30% market share with room to grow in a double-digit expanding sector.
The company’s five-year expected EPS CAGR of 12.9%, although lower than before, still reflects solid profit growth potential amid challenges.
Salesforce offers a broad cloud-based CRM platform that appeals to diverse enterprise customers, supporting long-term growth opportunities.

Considerations

Salesforce shares have fallen 28% in 2025, underperforming its sector and major competitors, indicating material investor concerns.
Revenue growth has slowed to 7.7% year-over-year, marking a significant deceleration from years of double-digit increases.
Salesforce faces macroeconomic and geopolitical headwinds causing cautious enterprise spending and increased near-term growth uncertainty.

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