SAP SE: A Critical Element in Client Technology Ecosystems
In its recent second-quarter 2026 investor correspondence, the Oakmark Global Select Fund reflected on its performance and key holdings. The fund, which aims for substantial long-term capital growth through investments in both domestic and international equities, reported a return of 3.76% for the quarter. This figure trailed the MSCI World Index's 13.76% return. Healthcare and consumer staples were significant drivers of positive performance, while information technology and consumer discretionary sectors saw declines. Artificial intelligence continues to be a dominant market trend, and the firm’s investment strategy remains centered on evaluating companies based on their inherent competitive advantages, potential for long-term cash flow generation, and overall valuation, rather than speculative market predictions.
A focal point of Oakmark Global Select Fund's Q2 2026 update was SAP SE, a prominent global leader in enterprise application and business solutions, headquartered in Walldorf, Germany. As of July 14, 2026, SAP SE's stock was valued at $154.81 per share, reflecting a one-month decline of 2.51% and a 52-week loss of 49.41%. The company maintains a substantial market capitalization of $182.51 billion. The fund views SAP as a cornerstone provider of solutions that underpin its clients' technological frameworks, fostering consistent revenue streams and remarkably low customer attrition rates. SAP's accelerated migration of clients from on-premise to cloud-based systems is anticipated to enhance growth and reduce operational expenses. Although the market has expressed reservations about how artificial intelligence might affect the demand for enterprise software, Oakmark contends that this perspective underestimates SAP's extensive scale, comprehensive data ownership, and its integral role in defining client workflows, rendering it an indispensable component of its clients' tech ecosystems. The fund also expressed confidence in SAP's leadership team, citing their proven ability to navigate the company through the evolving AI landscape, having previously invested successfully in SAP and seizing the opportunity to reinvest at what they consider a significant discount to its inherent value.
SAP's sustained relevance and its strategic transition to cloud services highlight its adaptability and foresight in a rapidly changing technological environment. The company's deep integration into global business operations underscores the importance of resilient and comprehensive enterprise solutions. This strategic positioning, combined with strong leadership, places SAP in a favorable position to continue driving innovation and delivering long-term value to its stakeholders, even amidst disruptive technological advancements like artificial intelligence. The commitment to fundamental analysis and a focus on intrinsic value, as demonstrated by the Oakmark Global Select Fund, offers a valuable perspective on identifying enduring investment opportunities.
