German software firm SAP has surpassed Danish healthcare company Novo Nordisk to become Europe’s most valuable company by market capitalization. SAP reached a market value of $340 billion, slightly higher than Novo Nordisk, based on Reuters calculations using LSEG Workspace data. SAP, known for its enterprise software used in finance, sales, and supply chain operations, has seen a steady rise in its share price, partly driven by investor optimism around its cloud business and the potential impact of generative artificial intelligence. While SAP shares are up 7 percent in 2025, slightly behind the STOXX 600 index’s 8.3% gain, the company has delivered a total return of 160 percent since the end of 2022, far ahead of the index’s 28 percent rise.
In contrast, Novo Nordisk’s recent market performance has lagged due to investor disappointment following trial data from its next-generation obesity drug, Cagrisema. The company's shares have declined after the results fell short of expectations. Novo Nordisk had previously overtaken luxury retailer LVMH in September 2023 to become Europe’s largest company. The latest shift in market rankings reflects changing investor confidence driven by sector performance and expectations around innovation and long-term growth.
