SAP Deepens Ties With France's AI Ecosystem for Digital Sovereignty

SAP SE (SAP) has extended collaboration with France’s artificial intelligence (AI) ecosystem, spanning Bleu, Capgemini and Mistral AI, to advance Europe’s journey toward digital, cloud and AI sovereignty. By integrating SAP’s enterprise application expertise with France’s cutting-edge AI capabilities, the collaboration aims to deliver secure, scalable and sovereign cloud and AI solutions tailored for European institutions, industries and governments.

One of the pressing needs for digital sovereignty is the ability to protect critical infrastructure from cyberattacks, warfare and large-scale emergencies. Together with SAP, Bleu and Delos Cloud are likely to contribute to Europe’s digital autonomy by ensuring that sensitive data and operations remain within European jurisdiction and control.

Furthermore, SAP and Capgemini will strengthen their longstanding partnership to facilitate AI-driven enterprise transformation within the framework of regulatory and cybersecurity standards. Under a new Sovereign Technology Partnership, the collaboration will provide enterprise data and cloud migration services, secure and compliant automation, and cloud platforms, along with advanced agentic AI capabilities for both private and public sectors. The joint initiative aims to build trusted and resilient digital infrastructure across Europe, allowing organizations to innovate independently and securely.

Additionally, SAP and Mistral AI announced an expanded partnership focused on enhancing Europe’s position in AI. Key elements include integrating Mistral’s cutting-edge AI, including Le Chat, into the Sovereign AI Foundation on SAP Business Technology Platform, deploying AI workloads within European data centers with sovereignty in mind and co-developing industry-specific applications to address engineering and R&D challenges. A dedicated sovereignty pillar will support regulated sectors throughout Europe, starting with public services in Germany. This partnership promotes secure, scalable AI deployment aligned with European standards for compliance, data protection and technological independence.

SAP’s €20B Commitment to European Digital Sovereignty

These collaborations align with SAP’s broader Sovereign Cloud strategy, backed by a commitment of more than €20 billion toward sovereign cloud and AI investments. SAP Sovereign Cloud solutions combine trusted governance and compliance, full control over assets and data and best-in-class AI and enterprise technologies. The initiative equips governments, public institutions and enterprises to modernize their operations while retaining absolute control over their data and technology stack.

SAP’s expanded collaborations with Bleu, Capgemini and Mistral AI create a unified approach to strengthening Europe’s digital ecosystem. By aligning cloud infrastructure, cybersecurity and AI innovation under a sovereignty-first strategy, the partnerships support secure and sovereign digital transformation, acceleration of AI adoption across regulated and high-impact industries and long-term resilience for Europe’s most critical infrastructure.

SAP is benefiting from strong Cloud ERP momentum and growing adoption of its Rise with SAP and Grow with SAP offerings despite a challenging macro backdrop. Expanding demand for SAP’s Business Suite, Business Data Cloud, AI-driven solutions and integrated platform innovations is encouraging. The company’s fourth-quarter and 2026 pipeline remains robust, supported by renewed industry-wide momentum. AI is expected to be a major driver of sustained double-digit total revenue growth through 2027.

SAP raised its 2025 outlook, forecasting higher profitability while remaining cautious on cloud revenue. Strong cash flow continues to support innovation and strategic acquisitions. Cloud revenue is projected near the low end of €21.6–€21.9 billion, while non-IFRS operating profit is expected near the high end of €10.3–€10.6 billion. However, declining software license revenue and intense competition remain challenges.

SAP’s Zacks Rank & Stock Price Performance

SAP currently carries a Zacks Rank #3 (Hold). Shares of the company have risen 1.3% in the past year compared with the industry's growth of 4%.

Key Picks

Some better-ranked stocks from the broader technology space are Telefonica, S.A. (TEF), American States Water Company (AWR), and Southwest Gas Holdings, Inc. (SWX).TEF, AWR and SWX carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here

Telefonica’s earnings beat the Zacks Consensus Estimate in one of the trailing four quarters, matching in two and missing in one, with the average surprise being 1.98%. In the last reported quarter, TEF delivered an earnings surprise of 22.2%. Its shares have declined 7.1% in the past year.

American States Water earnings beat the consensus estimate in two of the trailing four quarters, meeting in one and missing in the other, with the average surprise being 3.63%. AWR’s long-term earnings growth rate is 5.7%. Its shares have lost 14% in the past year.

Southwest Gas Holdings’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing once, with the average surprise being 4.05%. SWX’s long-term earnings growth rate is 13.3%. SWX’s shares have inched up 1.7% in the past year.

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