Optimistic Medium-Term Outlook for SAP AG Amid Near-Term Challenges: Buy Rating AffirmedWe think SAP is being impacted by tariff disruptions, with particular pressure coming from SAP's manufacturing customer base (a sizable vertical for them), leading to delayed deals and a more back-end loaded year. In turn, our due diligence on US Fed activity shows weaker bookings activity for SAP in 3Q, impacted by DOGE-related cost initiatives. And our checks with a GSI flagged SAP deal slippage in 3Q, but the partner remains constructive on MT pipelines, driven by cloud migration momentum & Joule as an overarching agentic layer to lean into. But this partner was cautious on SuccessFactors demand trends, which confirms weaker data points we recently flagged in our HCM survey work (link, link).