German software company SAP has surpassed Danish healthcare company Novo Nordisk to become Europe’s largest company by market capitalization. 

As of 0900 GMT, SAP’s market cap stood at $340 billion, slightly exceeding that of Novo Nordisk, based on LSEG Workspace data. 

SAP is the largest software maker in Europe, specializing in business application software for functions such as finance, sales, and supply chain management. 

The company's shares have experienced significant growth in recent years, driven in part by optimism surrounding its cloud business, which is expected to benefit significantly from recent investments. 

Although SAP shares have increased by 7% so far in 2025, lagging behind the broader European STOXX 600 index's 8.3% year-to-date rise, they have delivered a total return of 160% since the end of 2022, well above the STOXX 600's 28%. 

In contrast, Novo Nordisk shares have underperformed recently, following disappointing trial data from its experimental products. The Danish healthcare firm had previously dethroned luxury retailer LVMH as Europe’s largest company in September 2023.