SAP SE
- Open
- 219.82
- Day high
- 223.28
- Day low
- 219.73
- Prev close
- 221.54
- Volume
- 3.0M
- Mkt cap
- $254.9B
- P/E (TTM)
- 27.8
- EPS (TTM)
- $7.93
- P/B
- 4.9
- P/S
- 5.8
- Yield
- 1.56%
- Per share
- $3.44
SAP SE (SAP) is a Technology company listed on NYSE. The stock is down 16% over the past year. Drillr has 1 published research article covering SAP.
SAP SE (SAP) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
SAP earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 7, 2026 | $2.00 | $1.85 | -7.5% | $11.2B | -0.5% |
| Jun 5, 2026 | $1.92 | $2.01 | +4.7% | $11.2B | -0.1% |
| Jan 29, 2026 | $1.77 | $1.89 | +6.8% | $11.3B | +16.7% |
| Oct 22, 2025 | $1.69 | $1.86 | +10.1% | $10.6B | +8.8% |
| Jul 22, 2025 | $1.63 | $1.70 | +4.3% | $10.6B | +15.1% |
| Jan 28, 2025 | $1.51 | $1.49 | -1.3% | $9.7B | +6.9% |
| Oct 21, 2024 | $1.22 | $1.23 | +0.8% | $9.5B | +2.5% |
| Jul 22, 2024 | $1.01 | $1.18 | +16.8% | $8.9B | -0.7% |
| Jan 23, 2024 | $1.57 | $1.41 | -10.0% | $9.3B | +3.0% |
| Oct 18, 2023 | $1.35 | $1.45 | +7.4% | $8.2B | -1.1% |
| Jul 20, 2023 | $1.25 | $1.14 | -8.7% | $8.2B | -1.6% |
| Apr 21, 2023 | $1.19 | $1.16 | -2.4% | $8.1B | +0.9% |
SAP SE company profile
Overview
SAP SE (NYSE:SAP) is a German multinational software corporation founded in 1972 and headquartered in Walldorf, Germany. The company has evolved from its origins as a traditional enterprise software provider to become one of the world's largest cloud-based business application companies. SAP went public in 1995 and has undergone a significant strategic transformation over the past decade, shifting from on-premise software licensing to cloud-based subscription services. Today, SAP serves over 440,000 customers in more than 180 countries, positioning itself as a leader in enterprise resource planning (ERP) and business intelligence software solutions.
Business
SAP operates in the enterprise software industry, providing comprehensive business management solutions that help organizations run their operations more efficiently. The company's core offering is enterprise resource planning (ERP) software, which integrates various business processes including finance, human resources, procurement, manufacturing, and supply chain management into a unified system. SAP's flagship product is SAP S/4HANA, a next-generation ERP suite that runs on the company's in-memory database platform called HANA. This system processes large volumes of business data in real-time, enabling companies to make faster, data-driven decisions. S/4HANA is available both as an on-premise solution and as a cloud service. The company's business segments include: 1. Cloud ERP Suite (approximately 84% of cloud revenue): This includes S/4HANA Cloud and other core business applications delivered as Software-as-a-Service (SaaS). This segment has been growing at 33-36% annually and represents SAP's primary growth engine. 2. Human Capital Management Solutions: SAP SuccessFactors provides cloud-based HR solutions including payroll, talent management, employee experience, and workforce analytics. 3. Customer Experience Solutions: Tools for managing customer relationships, sales, marketing, and commerce operations. 4. Business Technology Platform: A platform-as-a-service (PaaS) offering that enables customers to build, integrate, and automate applications on top of SAP's infrastructure. 5. Analytics and Business Intelligence: Including SAP Analytics Cloud and recently launched Business Data Cloud for data management and analytics. 6. Industry-Specific Solutions: Specialized applications tailored for specific industries like manufacturing, retail, healthcare, and financial services. 7. Spend Management: Solutions for procurement, travel, and expense management, including the Concur platform and recently acquired Taulia for working capital management. The company has also heavily invested in artificial intelligence capabilities, launching Joule, an AI-powered digital assistant that helps users navigate and automate business processes across SAP's applications.
Revenue model
SAP generates revenue through multiple business models that have evolved significantly during its cloud transformation: Primary Revenue Streams: 1. Cloud Subscriptions (Growing segment, ~€17+ billion annually): Recurring subscription fees for cloud-based applications including S/4HANA Cloud, SuccessFactors, and other SaaS offerings. Customers pay monthly or annual subscription fees based on the number of users and features utilized. 2. Software Licenses (Declining segment): One-time fees for on-premise software installations. This traditional model has been declining as SAP transitions customers to cloud subscriptions. 3. Support and Maintenance (Stable segment): Ongoing support services for existing on-premise installations, generating recurring revenue from existing customers who haven't yet migrated to cloud. 4. Cloud Services and Platform Fees: Usage-based fees for platform services, data storage, and transaction processing on SAP's Business Technology Platform. SAP's customers are primarily large and medium-sized enterprises across various industries including manufacturing, retail, financial services, healthcare, and government organizations. The company serves over 440,000 customers globally, with a significant portion being Fortune 500 companies. Margin Influencing Factors: Factors that increase margins include economies of scale in cloud operations (currently achieving 75% cloud gross margins), AI-driven productivity improvements that reduce operational costs, successful customer migrations from lower-margin on-premise to higher-margin cloud subscriptions, and the company's ongoing restructuring program aimed at optimizing workforce costs and geographic distribution. Factors that could pressure margins include intense competition from Microsoft, Oracle, and other cloud providers, the need for continued heavy investment in AI and cloud infrastructure, potential customer churn during the transition from on-premise to cloud, macroeconomic pressures that could impact customer spending on enterprise software, and the costs associated with supporting both legacy on-premise systems and new cloud platforms during the transition period.
Competitive moat
SAP's competitive moat is moderately strong, built primarily on high switching costs and deep enterprise integration. Once organizations implement SAP's ERP systems, replacing them requires significant time, cost, and operational disruption, as these systems become deeply embedded in core business processes. The company benefits from strong network effects, where the value of SAP's ecosystem increases as more customers, partners, and third-party developers build solutions on its platform. SAP's data advantage provides another layer of protection - the company processes vast amounts of business data across industries, enabling it to develop more sophisticated AI capabilities and industry-specific insights. The recent launch of Business Data Cloud and AI assistant Joule leverages this data advantage to create additional stickiness. However, SAP's moat faces several challenges. Competition from cloud-native providers like Workday in HR, Salesforce in CRM, and ServiceNow in workflow automation is intensifying. These competitors often offer more modern, user-friendly interfaces and can be easier to implement. Microsoft's aggressive push into enterprise applications with Dynamics 365, combined with its Office 365 integration, poses a particular threat. The company's legacy burden also creates vulnerability - maintaining both on-premise and cloud systems increases complexity and costs. Additionally, the rise of best-of-breed solutions and API-first architectures makes it easier for customers to mix and match different vendors rather than relying on a single ERP suite. SAP's moat strength ultimately depends on its ability to successfully complete the cloud transformation while maintaining the deep business process integration that makes switching costly. The company's significant investment in AI and industry-specific solutions suggests management recognizes the need to strengthen these competitive advantages.
Risks & safety
SAP demonstrates a strong margin of safety with solid financial fundamentals and manageable risk factors: Overall Assessment: The company maintains a healthy balance sheet with minimal solvency risk, though trading at elevated valuation multiples reflecting growth expectations. Cash and Debt Position: - Cash and short-term investments: €10.0 billion (Q4 2024) - Debt-to-equity ratio: 0.23 (manageable debt levels) - Strong free cash flow generation: €4.6 billion in 2024 - Current ratio: 1.12 (adequate liquidity) Valuation Metrics: - P/E ratio: 88.7x (elevated, reflecting growth premium) - EV/EBITDA: 43.0x (high multiple) - Price-to-book: 6.1x (premium valuation) - Cloud revenue growing 26% annually, justifying some premium Other Considerations: - Recurring revenue model provides predictable cash flows (79% recurring revenue) - €63 billion cloud backlog provides multi-year revenue visibility - Transformation costs creating near-term earnings volatility - Strong market position in mission-critical enterprise software reduces demand elasticity
Recent development
Over the past few years, SAP has undergone a fundamental strategic transformation focused on three key areas: cloud migration, artificial intelligence integration, and operational efficiency. Cloud Transformation: SAP has successfully pivoted from a traditional software licensing model to cloud subscriptions, with cloud revenue growing from approximately €7 billion in 2020 to over €17 billion in 2024. The company launched RISE with SAP and GROW with SAP programs to accelerate customer migration to cloud-based S/4HANA systems. These comprehensive transformation packages include not just software but also implementation services, making it easier for customers to modernize their systems. Artificial Intelligence Strategy: SAP has made significant investments in AI capabilities, spending nearly €1 billion over two years. The company launched Joule, an AI-powered digital assistant that provides natural language interaction with SAP systems. By 2024, SAP embedded over 130 generative AI use cases across its applications, with 30% of new cloud deals including AI components. The company also introduced Business Data Cloud to unify SAP and non-SAP data, enabling more powerful AI applications. Organizational Restructuring: SAP implemented a major workforce transformation program affecting 8,000-10,000 positions, aimed at shifting resources toward strategic growth areas like AI and cloud development. The company consolidated its go-to-market organization from seven regions to four and restructured its sales approach to focus on "land and expand" strategies with enhanced partner ecosystem support. Product Innovation: Beyond core ERP, SAP expanded its portfolio with acquisitions and new product launches. The company integrated sustainability solutions, launched SAP Signavio for business process intelligence, and enhanced its industry-specific cloud solutions. The recent partnership with Databricks and development of SAP Knowledge Graph demonstrate continued innovation in data analytics and AI capabilities.
SAP company profile · for informational purposes only — not investment advice.
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