Polen Flags SAP as Q3 Detractor, Cites Slower U.S. Deal Cycles Despite Cloud Strength

Overview

• Polen International Growth Strategy returned -4.23% gross (-4.53% net) in Q3 2025 versus a 6.89% gain for the MSCI ACWI ex‑USA benchmark.
• SAP was named a top detractor after management issued a subdued near-term outlook and described longer sales cycles in U.S. public sector and industrial manufacturing tied to trade uncertainties.
• Polen noted SAP’s operational positives, including cloud revenue that exceeded expectations and a strong backlog.
• The firm maintained long-term conviction in SAP, characterizing the business as resilient with potential to deliver at least mid-teens earnings growth for years.
• As of December 8, 2025, SAP closed at $242.98 for a market capitalization of about $283.5 billion, with hedge-fund holders in Insider Monkey’s database rising to 34 in Q3 from 32.