AI hyperscalers are causing concern in the enterprise software world, potentially disrupting traditional platforms. Despite this, analysts believe companies like ServiceNow and SAP are more resilient than feared, with strong demand for cloud services. ServiceNow provides digital workflow solutions and has a market cap of $138.1 billion, while SAP is a leader in ERP software with a market cap of $272.5 billion.

ServiceNow’s stock has been impacted by fears of AI disruption, leading to a 12% YTD decline. Despite being labeled as “resilient,” BNP Paribas Exane cut its price target on the stock. ServiceNow’s recent earnings report showed double-digit growth in revenue, with a positive outlook for subscription revenue and customer relationships.

SAP, a German software corporation, is facing similar challenges, with shares falling 2% YTD. Analysts are optimistic about SAP’s future performance, with BNP Paribas Exane having an “Outperform” rating and Jefferies maintaining a “Buy” rating. SAP’s recent earnings report showed growth in total revenue and cloud segment revenue, with a strong outlook for cloud revenue and adjusted profit for 2025.

Both ServiceNow and SAP are set to report their Q4 results soon. Analysts expect strong performance from both companies, with positive outlooks for revenue growth and margin expansion. Despite concerns about AI disruption, Wall Street analysts have a consensus “Strong Buy” rating on both ServiceNow and SAP, with price targets indicating upside potential.

Read more at Yahoo Finance: 2 ‘Resilient’ Software Stocks That Wall Street Thinks You Should Buy Now