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€137.92
Market Capi
€162B
Growth-adj P/E (3-yr hist)i
0.7x
Growth-adj P/E (3-yr proj)i
0.9x
P/S 26Ei
4.0x
P/S 28Ei
3.2x
EV/EBIT 26Ei
13x
EV/EBIT 28Ei
9.3x
P/E 26Ei
19x
P/E 28Ei
14x
P/S 26Ei
4.0x
EV/EBIT 26Ei
13x
P/E 26Ei
19x
P/S 28Ei
3.2x
EV/EBIT 28Ei
9.3x
P/E 28Ei
14x
Revenue
2026E
€40B
Gross Margini
74%
Hist. CAGRi
6.0%
Proj. CAGRi
11%
EBIT
2026E
€12B
Op. Margini
28%
Hist. CAGRi
26%
Proj. CAGRi
15%
Net profit
2026E
€8.2B
Net Margini
19%
Hist. CAGRi
46%
Proj. CAGRi
15%
Business Model
Recent Developments
Average Targeti
€214.04+51%
Consensusi
Buy
27 analysts covering
Net cashi
€3.7B
Div. Yieldi
1.9%
Dilutioni
0.1%
Market Capi
€162B
P/E 26Ei
19x
Adj. P/E (fwd.)i
0.9x
Revenue 26E
€40B
Proj. CAGRi
11%
Gross Margini
74%
EBIT 26E
€12B
Proj. CAGRi
15%
Op. Margini
28%
Net Profit 26E
€8.2B
Proj. CAGRi
15%
Net Margini
19%
Average Targeti
€214.04+51%
Consensusi
Buy
27 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 became CTO in January 2024, 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 took the COO role at end of 2023, focused on go-to-market execution, customer adoption, and operational efficiency across SAP's global field organization. His appointment reflects management's priority on converting the existing installed base rather than winning net-new logos.
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
Cloud revenue grew 27% year-over-year in Q1 2026 (reported April 23, 2026), with total revenue rising 12% to EUR 9.6 billion. The Cloud ERP Suite, SAP's core modernization engine, was the standout, expanding 23% as more customers migrated from on-premises licenses.
Operating margin improved nearly 3 percentage points to 30%, and operating profit climbed 24% — a cleaner profitability story than the headline revenue miss suggested.
EPS narrowly beat consensus while total revenue fell short of expectations, triggering a single-session stock drop of roughly 6%. Management held full-year guidance, citing macro and geopolitical uncertainty as manageable headwinds rather than structural concerns.
The current cloud backlog hit EUR 21.9 billion, up 25% at constant currencies — the forward-visibility metric analysts watch most closely as the on-premises base converts.
Recent developments
At SAP Sapphire on May 13, 2026, SAP unveiled its 'Autonomous Enterprise' vision, consolidating SAP Business Technology Platform, SAP Business Data Cloud, and SAP Business AI into a single governed environment called the SAP Business AI Platform. The centerpiece is the SAP Knowledge Graph, which maps business entities and processes across a customer's entire SAP landscape to enable agentic AI workflows.
Strategic partnerships with Anthropic, AWS, Google Cloud, and Microsoft were announced as part of the platform rollout, positioning SAP's AI agents as model-agnostic and cloud-portable.
The Sapphire announcements met a negative market reaction — shares fell 4.56% on May 13 — after SAP disclosed that legacy customers would need to shift at least half of on-premises maintenance spending to the cloud to access tools like the Joule AI assistant. Critical security vulnerabilities in Commerce Cloud and S/4HANA were also disclosed around the same event.
Debate & sentiment
Bulls point to the cloud backlog trajectory as evidence that the on-premises-to-cloud migration is structural and still early. If conversion rates hold, the revenue mix shift toward higher-margin, recurring cloud contracts should drive meaningful margin expansion through the end of the decade.
Bears focus on the transition friction: the requirement to move maintenance spend to access new AI features is seen as a coercive upsell that could accelerate churn among large enterprise customers unwilling to re-architect their landscapes on SAP's timeline.
A broader macro concern is that large enterprise IT budgets remain under pressure, and deal scrutiny has increased. The Q1 revenue miss, even with a held guidance, has left investors uncertain whether the full-year cloud targets are achievable without acceleration in H2.
Consensusi
Buy
Average targeti
€214.04+51%
Highest targeti
€290.00+105%
Lowest targeti
€154.99+9%
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