German software giant SAP has surpassed Danish healthcare company Novo Nordisk as Europe’s largest company by market capitalization. As of 0900 GMT on Monday, SAP’s market cap stood at $340 billion, edging out Novo Nordisk, according to Reuters’ calculations using LSEG Workspace data.
SAP, Europe’s leading software maker, specializes in business application software, serving various industries in functions like finance, sales, and supply chain management. Its growth is largely attributed to optimism surrounding its cloud business, with expectations that it will benefit significantly from recent investments in generative artificial intelligence. Despite a 7% increase in SAP’s stock price in 2025, which lags behind the broader European STOXX 600 index’s 8.3% rise year-to-date, the company has posted a remarkable 160% total return since the end of 2022, far outpacing the STOXX 600’s 28% performance.
In contrast, Novo Nordisk has seen recent underperformance, especially after disappointing trial results from its experimental obesity drug, Cagrisema. The healthcare company had previously surpassed luxury goods giant LVMH in September 2023 to become Europe’s largest company but has since struggled to maintain that lead.
