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SAP SE SAP

XetraApplication softwareFinancials to Jun 30, 2026 · Updated Oct 6, 2026

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SAP financials
Moat score
81
ROIC
17.1%
P/E
27.2
EV/EBIT
20.4
FCF yield
4.1%
Dividend yield
1.4%
Market cap
€212.3B

Moat ranks

Score rankTied #134 of 396
Durabilitydurable
Market structureOligopoly
Pricing powermoderate

Balance sheet

12/31/25
€BDec '24Dec '25
Cash9.68.2
Securities1.51.3
Long-term securities0.10.0
Debt8.95.8
Net cash2.23.8
Equity45.444.6
Leverage
Debt / EBITDA
0.50×
Debt / equity
0.13×
Leases (6/30/26)
€1.7B
Capital
Diluted shares
1,158M
Book value / share
€38.50
Price / book
4.8×
Net cash / share
€3.27
Market cap
€212.3B
Enterprise value
€208.5B

Per-share record

Fiscal years and TTM
Scale
€0€10€20€30€40'16'17'18'19'20'21'22'23'2431.32'2532.98TTM
Revenue per shareCash flow per share

Key indicators

Latest: Q2 '26
IndicatorLatestVs year agoLast 8 quarters
Revenue growth9.4%+0.5 pts
Operating margin26.8%-0.5 pts
FCF margin30.7%+4.3 pts
Capex / revenue1.2%-0.9 pts
Current cloud backlog€22.9B+27%
Cloud ERP Suite revenue€5.5B+25%
SAP and partner store solutions≥3,600––
More predictable revenue · 12/31/2584.0%+3.0 pts
Customer Net Promoter Score · 12/31/259-25%

Margins and growth from reported quarters; company KPIs as reported in results releases.

About SAP

SAP reports through Applications, Technology & Support, or ATS, at 90.2% of H1 2026 revenue and 97.4% of segment profit, and Core Services at 9.8% and 2.6%. The moat sits in ATS: ERP systems of record create workflow and data switching costs, suite economics support cross-sell, more than 3,600 SAP and partner solutions reinforce complements, and EUR 22.9 billion of current cloud backlog supports revenue visibility.

Revenue mix
Applications, Technology & Support 90.2%Core Services 9.8%
  • Data Workflow Lockin

    Finance, procurement and supply-chain records connect to SAP processes, integrations and trained staff.

  • Suite Bundling

    ERP-centered suite plus adjacent LoB apps and analytics/AI creates cross-sell and reduces point-solution penetration in core processes.

  • Ecosystem Complements

    Large partner ecosystem builds extensions and delivers implementation capacity, reinforcing SAP adoption and creating complements around BTP and ERP.

  • Long Term Contracts

    Recurring support and cloud subscriptions (plus multi-year cloud backlog) increase revenue visibility and reduce short-term competitive pressure at renewal.

Timeline
  1. Sep 15, 2026

    SAP made TabPFN-3.5 Plus available in AI Core, extending its ability to predict outcomes from structured business data.

  2. Jul 23, 2026

    SAP reduced its 2026 non-IFRS operating-profit outlook for Dremio and Prior Labs dilution, while maintaining its cloud-growth outlook.

  3. Jul 16, 2026

    SAP completed Prior Labs, adding tabular AI models and research talent while raising near-term investment needs.

  4. Jul 9, 2026

    The European Commission made SAP support commitments binding, giving on-premise customers more choice for ten years.

  5. Jul 6, 2026

    SAP completed Dremio, adding an open data lakehouse to connect SAP and third-party data for analytics and AI.

Ownership

To 10/6/26
CEO
Christian Klein
Since 2019 · 7 yrs
Professional CEOSingle share class
Insider trades0
Planned sales0

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Financial record

Fiscal year2016201720182019202020212022202320242025TTMTrendChange 2016–25
Per share (€)
Revenue18.4019.5820.6923.0823.1322.8425.1226.4528.9631.3232.98+6.1%/yr
Cash flow3.864.213.602.936.095.244.835.204.417.798.17+8.1%/yr
Earnings3.043.353.422.784.355.452.793.082.656.096.73+8.0%/yr
Free cash flow3.033.152.382.245.404.644.084.533.747.167.54+10.1%/yr
Capex0.831.061.220.680.690.590.750.670.680.630.63-3.1%/yr
Dividends1.151.251.401.501.581.852.442.032.172.332.49+8.2%/yr
Book value22.0021.2724.1525.7525.1432.9334.2036.5738.5137.9538.64+6.2%/yr
Diluted shares (M)1,1991,1981,1941,1941,1821,1801,1751,1801,1801,1751,158-0.2%/yr
Totals (€B)
Revenue22.123.524.727.627.327.029.531.234.236.838.2+5.8%/yr
Operating income5.14.95.74.56.66.35.95.84.79.610.2+7.2%/yr
Net income3.64.04.13.35.16.43.33.63.17.27.8+7.8%/yr
Free cash flow3.63.82.82.76.45.54.85.34.48.48.7+9.8%/yr
Buybacks0.00.50.00.01.50.01.50.92.11.92.9–
Dividends1.41.51.71.81.92.22.92.42.62.72.9+7.9%/yr
Net cash-3.2-1.5-2.5-8.2-6.6-1.5-1.24.12.23.83.2+€7.0B
Margins & returns (%)
Gross margin70.269.969.869.771.273.272.872.273.072.972.8+2.7 pts
Operating margin23.320.823.116.224.223.420.018.613.626.126.7+2.9 pts
Net margin16.517.116.512.118.823.911.111.69.119.520.4+3.0 pts
FCF margin16.416.111.59.723.320.316.317.112.922.922.9+6.4 pts
ROIC12.112.612.78.012.710.99.910.37.516.417.1+4.3 pts
Return on equity13.815.714.210.817.316.58.28.46.916.117.4+2.3 pts
R&D % of revenue13.814.314.715.616.319.620.620.319.118.018.0+4.2 pts
Stock pay % of revenue3.64.83.46.74.05.04.87.17.04.63.9+1.0 pts
Capex % of revenue4.55.45.93.03.02.63.02.52.32.01.9-2.5 pts

Change uses 2016 and 2025 only: compound annual growth for amounts, points for margins and returns, and the change in amount for net cash. A dash means no 2016 base. Trend shows the fiscal years.

TTM = four quarters to Jun 30, 2026. Per-share values use diluted weighted shares.ROIC = operating income × (1 − 30.3% tax rate, the company's own over three fiscal years excluding one-offs) ÷ (equity + debt − cash and current securities). Returns show a dash when their base is negative or under 10% of revenue. Free cash flow = operating cash flow − capex. Debt is all borrowings; net cash counts long-term securities and excludes leases.

Moat

Moat scorecard

Moat score81
Strength
Confidence
Structure
Oligopoly
Durability
durable
Trajectory
stable
Pricing power
moderate
Segments
  • Applications, Technology & Support90.2%
    5 claims
  • Core Services9.8%
    No moat

Moat claims

Applies to
Applications, Technology & Support
Confidence
Durability
durable
Trajectory
stableas of Oct 6, 2026
Why it holds

Finance, procurement and supply-chain records connect to SAP processes, integrations and trained staff. Replacement disrupts core operations; cloud migration preserves much of this dependence, while opening a chance to choose competing systems.

Why stable

ERP remains embedded in business records and cloud backlog is growing, but lower customer satisfaction and greater support choice prevent a clear widening conclusion.

Indicators
  • Current cloud backlog€22.9B+27%
  • Cloud ERP Suite revenue€5.5B+25%
  • Customer Net Promoter Score9-25%
  • Cloud customer satisfaction75.0%
Risks
  • Rise of modular, API-first best-of-breed stacks reduces suite dependence
  • Customer migrations to competitor clouds during major ERP refresh cycles
  • Data portability and interoperability mandates

Profile change log

  1. Oct 6, 2026 · analyst revision

    Cloud contracts and suite adoption support the moat, while customer satisfaction, support reform and investment costs constrain its strength. Core Services is assessed as having no separate moat because buyers can select many ERP delivery providers.

  2. Oct 6, 2026 · business change

    The court allowed Celonis to add trade-secret claims against SAP, extending the unresolved dispute over process-mining software and data access.

  3. Oct 6, 2026 · business change

    SAP made TabPFN-3.5 Plus available in AI Core, extending its ability to predict outcomes from structured business data.

  4. Oct 6, 2026 · business change

    SAP reduced its 2026 non-IFRS operating-profit outlook for Dremio and Prior Labs dilution, while maintaining its cloud-growth outlook.

  5. Oct 6, 2026 · business change

    SAP completed Prior Labs, adding tabular AI models and research talent while raising near-term investment needs.

  6. Oct 6, 2026 · business change

    The European Commission made SAP support commitments binding, giving on-premise customers more choice for ten years.

  7. Oct 6, 2026 · business change

    SAP completed Dremio, adding an open data lakehouse to connect SAP and third-party data for analytics and AI.

  8. Oct 6, 2026 · business change

    SAP bought Reltio for EUR1.076 billion of consideration, adding master-data tools for SAP and third-party systems.

  9. Oct 6, 2026 · business change

    SAP settled the Teradata dispute for US$480 million, resolving the pending claims and creating a March cash outflow.

  10. Oct 6, 2026 · business change

    SAP sold Qualtrics, removing the experience-management business from continuing revenue and profit.

Industry & peers

Peer map

0%10%20%30%40%50%60708090100Moat scoreIndustry medianSAPORCLMSFTCRMNOWWDAY

Hover a point for its values; click a peer to compare. Dashed lines: industry medians.

Global enterprise application software

As of Oct 9, 2026
CompetitiveMedium cyclicalityUSD 754B in 2030

Cloud and on-premise business applications including ERP, finance, HCM, CRM, supply chain, procurement, analytics, content management and collaboration, using Apps Run The World's enterprise-applications taxonomy. Excludes implementation consulting, core cloud infrastructure and consumer software; the market is broader than SAP's ERP-centered portfolio or IDC's narrower CRM application market.

StocksMoatGross m.Op. m.
SAP8172.8%26.7%
Industry median317875.3%19.9%
Sector median777564.9%23.6%
All stocks median3987652.9%19.6%

Moat medians cover every stock. Margin medians count only stocks with collected numbers and need at least three.

Drivers & risks

Demand drivers
  • ERP modernization and migration of established customers create cloud demand; systems of record provide a base for adjacent applications.
  • Integrated business data and workflow automation support demand for AI, but paid adoption must justify additional spend. Including AI across existing commercial tiers can broaden adoption, while extra revenue still depends on usage, editions and proven customer outcomes.
  • Compliance, data residency and secure deployment requirements favor vendors with tested enterprise controls and implementation partners.
  • Demand follows business investment and employment; multi-year subscriptions cushion slowdowns, while new deals and migration projects can be delayed.
  • Currency changes affect international revenue translated into dollars or euros; implementation wages, cloud hosting and AI inference costs affect supplier margins. ServiceNow’s Q3 2026 cRPO outlook includes a $35 million currency headwind, while its current cost disclosures show rising cloud and infrastructure spending.
Risks
  • Major migrations reopen vendor choice; Oracle, Microsoft, Workday and specialist applications can displace an incumbent.
  • Interoperability, open data formats, antitrust remedies and data-access litigation reduce some forms of contractual dependence and support pricing power.
  • High interest rates and weak business confidence can delay transformation budgets; debt-funded acquisitions and repurchases also increase supplier financing costs.
  • AI may improve existing applications or let new entrants bypass them; product announcements do not prove adoption or pricing power.
  • Cyber incidents, failed implementations and cloud outages can weaken trust in mission-critical systems. Unresolved government-contract compliance investigations, such as ServiceNow’s July 2026 disclosure, can also affect public-sector trust and procurement access. Healthcare deployments face patient-safety and government oversight requirements; expanding contract ceilings do not resolve delivery risk.

Bulls & bears

Key question · as of Oct 6, 2026

Can SAP turn the forced ERP migration cycle and new AI products into durable cloud expansion while preserving customer trust and converting backlog into cash?

Arguments

3 forFaded: weakening or settled4 against

What to watch

  1. 1Current cloud backlog and its constant-currency growth, excluding acquisition contribution
  2. 2Cloud ERP Suite revenue and software support revenue
  3. 3Cloud CSAT under its new definition, rather than comparison with retired NPS
  4. 4Operating cash flow after restructuring and legal cash payments
  5. 5AI paid adoption and share of cloud orders containing Business AI

Next check: October 21, 2026 Q3 results: check Dremio and Prior Labs integration costs, backlog conversion and updated 2026 profit guidance.

Sources: company filings and dated sources collected for Find My Moat; market cap as of Oct 5, 2026. Not investment advice.

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Moat Score 81/100 by <a href="https://www.findmymoat.com/stocks/XETR:SAP">Find My Moat</a> (as of September 2026)

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