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€191.46
Market Capi
€213B
Growth-adj P/E (3-yr hist)i
0.7x
Growth-adj P/E (3-yr proj)i
1.3x
P/S 26Ei
5.3x
P/S 28Ei
4.2x
EV/EBIT 26Ei
18x
EV/EBIT 28Ei
13x
P/E 26Ei
26x
P/E 28Ei
19x
P/S 26Ei
5.3x
EV/EBIT 26Ei
18x
P/E 26Ei
26x
P/S 28Ei
4.2x
EV/EBIT 28Ei
13x
P/E 28Ei
19x
Revenue
2026E
€40B
Gross Margini
74%
Hist. CAGRi
6.0%
Proj. CAGRi
11%
EBIT
2026E
€12B
Op. Margini
28%
Hist. CAGRi
26%
Proj. CAGRi
14%
Net profit
2026E
€8.2B
Net Margini
19%
Hist. CAGRi
46%
Proj. CAGRi
15%
Business Model
Recent Developments
Average Targeti
€209.81+14%
Consensusi
Buy
28 analysts covering
Net cashi
€2.0B
Div. Yieldi
1.4%
Dilutioni
0.1%
Market Capi
€213B
P/E 26Ei
26x
Adj. P/E (fwd.)i
1.3x
Revenue 26E
€40B
Proj. CAGRi
11%
Gross Margini
74%
EBIT 26E
€12B
Proj. CAGRi
14%
Op. Margini
28%
Net Profit 26E
€8.2B
Proj. CAGRi
15%
Net Margini
19%
Average Targeti
€209.81+14%
Consensusi
Buy
28 analysts covering
Profile
SAP SE is the world's largest enterprise application software vendor, selling integrated software that runs the core operations of large and mid-size organizations — finance, procurement, supply chain, HR, and customer experience. Revenue breaks down into two broad categories:
Geographically, the US is the single largest market at roughly 31% of revenue, followed by Germany (16%) and broader EMEA (30%), with Asia-Pacific and Japan contributing the remainder.
Industry
SAP sells almost exclusively to enterprises and large mid-market organizations across every industry vertical — manufacturing, retail, utilities, public sector, financial services. Its core buyers are CIOs and CFOs running multi-year transformation programs. Retention is structurally high: large ERP deployments are deeply embedded in finance and supply-chain workflows, making replacement a multi-year project. The US and Germany together account for nearly half of revenue, and no single vertical dominates enough to create meaningful concentration risk.
Key metrics
Economic moat
Switching costs are the dominant moat. Core ERP systems sit at the center of finance, procurement, and supply-chain workflows; replacing SAP means re-engineering processes, retraining staff, and accepting years of disruption — most enterprises will upgrade rather than switch. At scale, SAP also benefits from data network effects: the SAP Business Network (procurement and logistics transactions) becomes more valuable as more suppliers and buyers connect to it. These structural advantages allow SAP to layer AI and cloud products onto an installed base that has nowhere else to go in the medium term.
Christian Klein
Klein has served as sole CEO since October 2019, having joined SAP in 1999 and risen through finance and operations roles before co-leading the company briefly with Jennifer Morgan. He is one of the youngest CEOs of a DAX 40 company and has overseen SAP's strategic pivot from on-premises licensing to a cloud-first subscription model. His tenure has been defined by the S/4HANA Cloud migration push and, more recently, the AI platform buildout announced at Sapphire 2026.
Dominik Asam
Asam joined as CFO in March 2023, previously serving as CFO of Airbus and before that holding finance leadership roles at Infineon. His background in managing capital-intensive transformation programs is directly relevant to SAP's cloud transition, which requires sustained investment alongside pressure to expand margins.
Philipp Herzig
Herzig added the CTO title in February 2025, alongside his existing role as Chief AI Officer, having led SAP's AI and intelligent enterprise efforts internally. He is the executive most directly accountable for the Business AI Platform strategy unveiled at Sapphire 2026, including the SAP Knowledge Graph and Joule AI assistant roadmap.
Sebastian Steinhaeuser
Steinhaeuser joined the Executive Board in February 2025 as Chief Operating Officer, heading the Strategy & Operations board area — corporate strategy, business operations, processes and IT, and marketing, including the Industry AI unit. He joined SAP in 2020 and had already been running growth areas such as Business Transformation Management before his board appointment. His remit reflects management's priority on aligning strategy with execution as SAP pushes its AI-first, suite-first strategy.
P/S Ratioi
EV/EBITi
P/E Ratioi
Revenue
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
EBIT
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
Net profit
CAGR (hist. 3-yr)i
0%
CAGR (proj. 3-yr)i
0%
Values in billions of EUR.
Operating cashflow · Levered Free Cash Flow
Free Cash Flow
CAPEX
Values in billions of EUR.
Margins
Rentability
Balance sheet
Values in billions of EUR.
Liquidity ratios
Debt-to-Equity-Ratio
Last earnings
Q2 2026 revenue rose 9% year over year to €9.9 billion (11% at constant currencies), broadly in line with expectations.
Cloud revenue climbed 22% to €6.3 billion and current cloud backlog reached €22.9 billion, up 27% — the quarter's standout, per analysts.
Non-IFRS EPS of €1.59, up 6% year over year, missed estimates, though IFRS EPS jumped 30% to €1.89.
Management trimmed its full-year non-IFRS operating profit outlook to €11.8–12.2 billion (from €11.9–12.3 billion), citing more than €100 million of dilution from two acquisitions, while holding cloud revenue guidance steady.
Recent developments
SAP completed its acquisition of Dremio on July 6, 2026, adding a data-lakehouse platform for blending SAP and non-SAP data in AI workloads.
It closed the purchase of Prior Labs on July 17, 2026, committing more than €1 billion over four years to build the tabular-AI specialist into a frontier research lab.
On July 9, 2026, the European Commission concluded its antitrust probe into SAP's on-premise maintenance practices via a binding commitments decision, with no wrongdoing found.
On July 2, 2026, SAP expanded its IBM partnership around SAP Cloud ERP Private running on IBM infrastructure.
Debate & sentiment
Bulls cite AI embedded in over 90% of the quarter's 50 largest deals and accelerating backlog growth as proof the new Business AI Platform is gaining traction.
Skeptics point to R&D spending up 14% year over year and rising AI infrastructure costs squeezing near-term cloud margins, which management calls a temporary phase.
The Dremio and Prior Labs deals raise integration questions, with some investors wary that the €1 billion-plus AI commitment pressures near-term profitability.
After a prolonged, steep share-price decline, the debate is whether the stock now fairly reflects growth-deceleration risk or is oversold relative to backlog strength.
Consensusi
Buy
Average targeti
€209.81+14%
Highest targeti
€290.00+58%
Lowest targeti
€160.00-13%
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