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Europe's largest software company, making enterprise resource planning (ERP) software that runs finance, supply chain and HR for large companies.
Europe's largest software company, making enterprise resource planning (ERP) software that runs finance, supply chain and HR for large companies.
Shifting from selling perpetual licences with annual support to cloud subscriptions, which are billed over time. Support deadlines on its older ERP versions push customers to move, and a large partner network of consultancies carries out the installations. Founded in 1972 by former IBM engineers.
In one line: Germany's Oracle (ERP).
Moat: wide (switching costs, installed base, IP / patents). ERP systems are deeply embedded in core business processes, making replacement extremely costly and rare.
Headquarters: Walldorf, Germany · Founded: 1972 · Employees: 110,650
Size Sap (SAP.DE) is a Germany Information Technology company (Packaged Software) with a market value of $276B, the largest of 205 Germany companies the cockpit tracks. Shares closed at €210.75 on 6 Nov 2026.
Performance Over six months the shares gained 49.2%, against -3.0% for the median peer and +2.6% for the Germany market (cap-weighted) — 4th highest of 14 in its peer set.
Growth Revenue grew 7.9% over the last twelve months (peer median +24.3%); the operating margin is 28.8% (peer median 21.5%).
Valuation It trades at 29.8× forward earnings against a peer median of 22.4× (6th most expensive of 14).
Price implies For today's price to make sense, revenue must grow about 15% a year for seven years (Req g). Recent delivered growth is +6%, so the hurdle is +9 pp: the price needs faster growth than the company has been delivering — of companies that just grew 25–50% a year, 93.8% slowed down over the next four years.
Capital Return on invested capital runs 7.7 points above its cost of capital (8.8% WACC).
Backlog Backlog (remaining performance obligations) was €90.5B at 31 Dec 2025, up 15% on a year earlier — 2.5 years of trailing revenue. Backlog detail →
Credit Sap has 9 bonds outstanding ($8.97B), rated A+ by the agencies and trading like AA at a weighted spread of 59 bp.
Next results Next results expected around 28 Jan 2027 (exchange calendar; dates can move).
| TTM | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue | €39.4B | €36.8B | €34.2B | €31.2B | €29.5B |
| Revenue growth | — | +8% | +10% | +6% | — |
| Gross profit | €29.8B | €26.9B | €25.0B | €22.6B | €21.6B |
| EBITDA | €12.6B | €11.4B | €9.53B | €7.96B | €8.22B |
| Net income | €8.21B | €7.16B | €3.12B | €2.58B | €2.29B |
| Free cash flow | €9.01B | €8.26B | €4.42B | €5.55B | €4.77B |
| Capital expenditure | €701M | €739M | €797M | €785M | €877M |
| Total debt | €10.6B | €7.48B | €10.7B | €8.79B | €13.1B |
The default views of Competitor Analysis ▸ Charts, drawn from the same data. Open them in the cockpit to change the axes, pin companies and read every value.
| Company | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g |
|---|---|---|---|---|---|---|
| Sap SAP.DE | $276B | +49% | +8% | 29% | 29.8× | 14.9% |
| Oracle ORCL | $351B | -41% | +22% | 34% | 13.6× | n/a |
| Microsoft MSFT | $3.94T | +28% | +18% | 47% | 25.5× | 17.2% |
| Workday WDAY | $46.5B | +51% | +14% | 13% | 16.0× | 19.7% |
| Salesforce CRM | $176B | +18% | +11% | 22% | 14.6× | 13.7% |
Peer set: Industry: the same industry and sector in any market, nearest in size. This is the same default set the interactive Competitor Analysis opens with.
| Measure | SAP.DE | Peer median | Rank in peer set |
|---|---|---|---|
| 1-month return | +14.2% | -9.5% | 2nd highest of 14 |
| 6-month return | +49.2% | -3.0% | 4th highest of 14 |
| Distance from 52-week high | -4.4% | -28.3% | highest of 14 |
| Revenue growth (TTM) | +7.9% | +24.3% | lowest of 14 |
| Operating margin | 28.8% | 21.5% | 6th highest of 14 |
| Forward P/E | 29.8× | 22.4× | 6th most expensive of 14 |
| Growth the price implies (Req g, 7 yrs) | 14.9% | 29.9% | 4th least demanding of 12 |
| Growth delivered (Del g) | +6.1% | +17.4% | lowest of 12 |
| Hurdle (Req g minus delivered) | +8.8 pp | +5.5 pp | 6th most demanding of 12 |
| ROIC minus cost of capital | +7.7 pp | -1.0 pp | 4th highest of 13 |
| EV / EBITDA | 19.6× | 19.8× | 5th cheapest of 9 |
| Net debt / EBITDA | 0.1× | 0.4× | 5th least indebted of 13 |
| Bond spread | 59 bp | 95 bp | 2nd tightest of 11 |
| Company | Market | Market cap | 6M return | Revenue growth | Op. margin | Forward P/E | Req g | Delivered g |
|---|---|---|---|---|---|---|---|---|
| Sap SAP.DE | Germany | $276B | +49% | +8% | 29% | 29.8× | 14.9% | +6.1% |
| Palo Alto Networks PANW | United States | $257B | +51% | +24% | 5% | 75.0× | n/a | n/a |
| CrowdStrike CRWD | United States | $222B | +64% | +24% | -1% | 153.6× | 52.4% | +40.6% |
| Oracle ORCL | United States | $351B | -41% | +22% | 34% | 13.6× | n/a | n/a |
| Palantir Technologies PLTR | United States | $386B | +16% | +87% | 46% | 69.8× | 56.6% | +32.6% |
| Salesforce CRM | United States | $176B | +18% | +11% | 22% | 14.6× | 13.7% | +14.3% |
| AppLovin APP | United States | $131B | -16% | +29% | 78% | 20.0× | 28.2% | +30.4% |
| ServiceNow NOW | United States | $106B | +12% | +22% | 13% | 22.4× | 29.5% | +24.1% |
| SNOW SNOW | United States | $97.3B | +81% | +32% | -22% | 108.4× | 41.3% | +51.2% |
| Adobe ADBE | United States | $93.1B | -5% | +12% | 36% | 8.9× | 0.9% | +13.1% |
| Intuit INTU | United States | $91.3B | -14% | +14% | 29% | 14.8× | 3.1% | +17.4% |
| Cadence Design Systems CDNS | United States | $87.8B | -12% | +18% | 30% | 34.0× | 29.9% | +14.6% |
| Synopsys SNPS | United States | $86.3B | -13% | +46% | 12% | 25.6× | 39.2% | +13.9% |
| Prosus PRX.AS | Netherlands | $83.9B | -3% | +45% | 3% | 10.1× | 55.8% | +13.8% |
Sap has 9 bonds outstanding with $8.97B face value. The agencies rate it A+; its bonds trade like AA. Weighted yield 3.58%, a spread of 59 bp over government bonds.
Sap reported €90.5B of remaining performance obligations at 31 Dec 2025, up 15% from a year earlier. That is 2.5 years of trailing revenue already under contract.