SAP
ConvictionModerate
B2B enterprise software: transitioning from perpetual on-prem licenses + maintenance to cloud subscription (SaaS S/4HANA Cloud, RISE with SAP, plus HCM/spend/CX suites), sold to large enterprises via direct sales and a global system-integrator partner ecosystem; recurring-revenue heavy with multi-year contracted backlog.
Revenue
FY2025 total revenue EUR 36.8B~$42B); Q1 2026 EUR 9,555MRev growth
FY2025 +8% reported / +11% ccQ1 2026 +6% reported / +12% cc. Cloud revenue the growth engine: FY2025 cloud +26% cc, Q1 2026 cloud +27% cc.Gross margin
~73-74% company non-IFRScloud gross margin ~74%, rising as RISE workloads scale on hyperscalersOp margin
Non-IFRS ~28% FY202530.0% in Q1 2026); IFRS Q1 2026 ~29% (EUR 2,741M op profit on EUR 9,555M revenue), non-IFRS margin +2.8pp YoY in Q1 2026Capex intensity
Low~2-3% of revenue; asset-light, increasingly hyperscaler-hosted rather than owned data centersMarket cap
~$191B USDearly Jul 2026, per companiesmarketcap.com). Primary listing Frankfurt/Xetra (SAP.DE / XETR:SAP); NYSE ADR: SAP (1 ADR = 1 ordinary share). Down ~47% YoY and ~33% YTD in 2026.The read
Where our coverage leans
Coverage leans bearish
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Earnings, margins & COGS, the income-statement breakdown, SWOT, moats & dependencies, the supplier–customer ecosystem graph, top signals & trends, and the valuation range.
- Income statement & margin structure
- SWOT, moats & dependency map
- Supplier–customer ecosystem graph
- Signals, trends & valuation range
Not investment advice — analyst work product for a qualified professional.· intel vintage 2026-07· sign in (free) for the analyst summary; Pro unlocks full intelligence