Do You Believe in the Growth Potential of SAP (SAP)?

Polen Capital, an investment management company, released its third-quarter 2025 “Polen International Growth Strategy” investor letter. A copy of the letter can be downloaded here. The strategy returned -4.23% gross and -4.53% net of fees in the quarter, compared to the MSCI ACWI’s (ex-USA) 6.89% gain. The strategy’s concentrated approach to quality investing failed to match the index in the quarter. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its third-quarter 2025 investor letter, Polen International Growth Strategy highlighted stocks such as SAP SE (NYSE:SAP). SAP SE (NYSE:SAP) is a leading enterprise application and business solutions provider. The one-month return of SAP SE (NYSE:SAP) was -4.48%, and its shares lost 3.32% of their value over the last 52 weeks. On December 08, 2025, SAP SE (NYSE:SAP) stock closed at $242.98 per share, with a market capitalization of $283.508 billion.

Polen International Growth Strategy stated the following regarding SAP SE (NYSE:SAP) in its third quarter 2025 investor letter:

“The Portfolio’s top relative and absolute detractors were Sage Group, Monday.com, and SAP SE (NYSE:SAP). SAP came under pressure in the quarter as management issued a more subdued near-term outlook, noting longer sales cycles in US public sector and industrial manufacturing due to trade uncertainties. This was despite cloud revenue growth exceeding expectations and continued backlog strength. We continue to view SAP as one of the more resilient large-scale software business models given its mission-critical role in customers’ operations. Given its strong market position, vast partner ecosystem, balanced growth across new and existing customers, high recurring revenues, and improving margins, we believe SAP is well positioned to continue delivering at least mid-teens earnings growth for many years to come.”

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

SAP SE (NYSE:SAP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 34 hedge fund portfolios held SAP SE (NYSE:SAP) at the end of the third quarter, which was 32 in the previous quarter. While we acknowledge the risk and potential of SAP SE (NYSE:SAP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SAP SE (NYSE:SAP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered SAP SE (NYSE:SAP) and shared the list of most fantastic stocks every investor should pay attention to. Mar Vista U.S. Quality Strategy mentioned in its Q3 2025 investor letter that SAP SE (NYSE:SAP) faced pressure due to concerns over AI disruption and IT spending trends, but it is strategically positioned for growth. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.