European software giants surprised investors in a volatile earnings season, with SAP SE posting stronger cloud demand that dampened concerns about AI disruption and the Iran conflict. The German leader’s results lifted its shares after months of decline.

ServiceNow Inc. warned that the Iran war stalled some deals, fueling doubts about AI displacement. Bloomberg Intelligence noted that SAP’s growing cloud backlog should allay those worries, while Deutsche Bank praised the healthy demand for its AI‑enabled solutions.

Capgemini SE, Nemetschek SE, Dassault Systemes SE and others also beat expectations across regions. Dassault’s resilience stems from engineering‑intensive clients that shield it from macro swings, a point highlighted by Citigroup analysts.

Despite the upbeat earnings, analysts caution that the rest of the year may bring tighter benchmarks and headline risk for the sector. The latest data suggest that the AI narrative will shift toward differentiation at the company level rather than a blanket industry trend.