Recent News
On November 18, 2025 SAP announced a collaboration with France’s AI ecosystem to develop sovereign, AI-enabled cloud solutions. On November 14, 2025 SAP presented at Morgan Stanley’s European Technology conference, outlining strategy and product priorities. On December 31, 2025 new February-2026 options listings began trading for SAP, expanding derivatives liquidity around the company.
Technical Analysis
Directional strength sits at an emerging level: ADX = 23.02 signals an emerging trend rather than a clear, sustained move, which matches the near-term ambiguity around cloud execution and guidance.
Directionals show bearish dominance: DI- = 41.72 (dip & reversal → increasing) and DI+ = 22.17 (peak & reversal → decreasing) together point to seller control and downside pressure, which increases the probability that price remains biased lower until cloud backlog clarity arrives.
Momentum indicators confirm bearish bias: MACD = -8.68 with a peak-and-reversal pattern and MACD signal = -5.26 indicates declining momentum and no bullish MACD cross; price momentum likely remains negative absent stronger order flow or guidance surprise.
MRO = -21.28 (negative) implies price sits below the model target and therefore contains potential for a corrective increase; that potential opposes the current momentum, suggesting any rally would likely be mean-reversion rather than trend change unless confirmed by fundamentals.
RSI = 39.24 with a peak-and-reversal pattern registers below neutral territory and reinforces the short-term bearish bias, while also signaling proximity to oversold levels that can attract tactical buyers if news flow stabilizes.
Price sits well below long-term averages: close = $197.29 versus 200‑day average = $270.06 and 50‑day = $237.69, with the 12‑day EMA decreasing; price trading beneath the Ichimoku cloud (Senkou A = $244.77, Senkou B = $257.44) and below the 1× Bollinger lower band ($206.52) points to technical overshoot and elevated downside risk until a sustained move back above short-term moving averages.
Volume and volatility context amplifies conviction: intraday volume (8,151,137) outpaced the 10‑day average (4,702,468) and 50/200‑day averages, indicating higher conviction in the recent directional move; 42‑day volatility sits higher (beta42day = 1.46) than the 52‑week beta (0.90), consistent with elevated short-term trading risk.
Fundamental Analysis
Q4 earnings metrics show an EPS beat: actual EPS = $1.93 versus estimate = $1.72, an EPS surprise of 12.21%, supporting reported operating leverage and near-term earnings resilience. The company also disclosed cloud backlog and guidance that market participants found below prior momentum, affecting sentiment.
Profitability: EBIT = $3,057,000,000 and EBIT margin = 33.68%, up 9.76% QoQ and up 19.27% YoY, reflecting improved operating leverage on cloud and service mix. EBIT margin sits slightly below the industry peer mean (36.32%) and below the industry peer median (45.06%), indicating margins strong in absolute terms but not top among peers.
Revenue and growth: total revenue = $9,076,000,000 with reported revenue growth = 0.54% QoQ but revenue growth YoY = -75.14% (data-provided figure). Sequential momentum shows a 250.32% QoQ uplift in revenue growth per the supplied metric; reconcilement with company commentary and backlog trends remains critical for forward modeling.
Cash flow and liquidity: operating cash flow = $1,502,000,000 and free cash flow = $1,301,000,000, yielding a free cash flow yield of 0.41% and a free-cash-flow YoY decline of 20.97%. Cash and short‑term investments total $9,934,000,000 and the cash conversion cycle = -23.13 days, marginally better than the industry peer mean of -22.55 days, underpinning working‑capital efficiency.
Capital structure and coverage: total debt = $9,121,000,000 with debt/EBITDA ≈ 2.70 and interest coverage ≈ 9.80x, both consistent with an investment‑grade profile and providing headroom for the announced €10 billion repurchase program disclosed in results commentary.
Valuation multiples: P/E ≈ 137.94 (down 17.75% QoQ and down 22.25% YoY), P/B ≈ 7.47 (down 7.48% QoQ, up 20.91% YoY) and EV/Revenue ≈ 35.13. P/E sits slightly below the industry peer mean P/E (146.04) and near the industry peer median (137.28). WMDST values the stock as fair-valued, reflecting premium multiples for software with durable recurring revenue but near-term execution risk on cloud backlog conversion.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2026-01-29 |
| NEXT REPORT DATE: | 2026-04-30 |
| CASH FLOW | Begin Period Cash Flow | $ 7.9 B |
| Operating Cash Flow | $ 1.5 B | |
| Capital Expenditures | $ -201.00 M | |
| Change In Working Capital | $ -1.10 B | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 612.0 M | |
| End Period Cash Flow | $ 8.6 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 9.1 B | |
| Forward Revenue | $ 3.3 B | |
| COSTS | ||
| Cost Of Revenue | $ 2.4 B | |
| Depreciation | $ 318.0 M | |
| Depreciation and Amortization | $ 318.0 M | |
| Research and Development | $ 1.6 B | |
| Total Operating Expenses | $ 6.6 B | |
| PROFITABILITY | ||
| Gross Profit | $ 6.7 B | |
| EBITDA | $ 3.4 B | |
| EBIT | $ 3.1 B | |
| Operating Income | $ 2.5 B | |
| Interest Income | $ 524.0 M | |
| Interest Expense | $ 312.0 M | |
| Net Interest Income | $ 212.0 M | |
| Income Before Tax | $ 2.7 B | |
| Tax Provision | $ 694.0 M | |
| Tax Rate | 25.3 % | |
| Net Income | $ 2.0 B | |
| Net Income From Continuing Operations | $ 2.1 B | |
| EARNINGS | ||
| EPS Estimate | $ 1.72 | |
| EPS Actual | $ 1.93 | |
| EPS Difference | $ 0.21 | |
| EPS Surprise | 12.209 % | |
| Forward EPS | $ 2.54 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 68.4 B | |
| Intangible Assets | $ 31.4 B | |
| Net Tangible Assets | $ 11.4 B | |
| Total Current Assets | $ 18.9 B | |
| Cash and Short-Term Investments | $ 9.9 B | |
| Cash | $ 8.6 B | |
| Net Receivables | $ 5.8 B | |
| Inventory | — | |
| Long-Term Investments | $ 4.0 B | |
| LIABILITIES | ||
| Accounts Payable | $ 2.1 B | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 17.1 B | |
| Net Debt | — | |
| Total Debt | $ 9.1 B | |
| Total Liabilities | $ 25.2 B | |
| EQUITY | ||
| Total Equity | $ 42.8 B | |
| Retained Earnings | $ 45.7 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 36.76 | |
| Shares Outstanding | 1.165 B | |
| Revenue Per-Share | $ 7.79 | |
| VALUATION | Market Capitalization | $ 319.7 B |
| Enterprise Value | $ 318.9 B | |
| Enterprise Multiple | 94.48 | |
| Enterprise Multiple QoQ | -11.423 % | |
| Enterprise Multiple YoY | 5.338 % | |
| Enterprise Multiple IPRWA | high: 725.943 SAP: 94.48 mean: 90.294 median: 78.121 low: -500.562 |
|
| EV/R | 35.133 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 1.598 | |
| Asset To Liability | 2.719 | |
| Debt To Capital | 0.176 | |
| Debt To Assets | 0.133 | |
| Debt To Assets QoQ | 4.293 % | |
| Debt To Assets YoY | 1749.653 % | |
| Debt To Assets IPRWA | high: 1.164 mean: 0.173 SAP: 0.133 median: 0.095 low: 0.001 |
|
| Debt To Equity | 0.213 | |
| Debt To Equity QoQ | -0.122 % | |
| Debt To Equity YoY | 1649.343 % | |
| Debt To Equity IPRWA | high: 2.803 mean: 0.294 SAP: 0.213 median: 0.167 low: -1.761 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 7.468 | |
| Price To Book QoQ | -7.477 % | |
| Price To Book YoY | 20.91 % | |
| Price To Book IPRWA | high: 32.156 mean: 12.611 median: 10.455 SAP: 7.468 low: -17.466 |
|
| Price To Earnings (P/E) | 137.94 | |
| Price To Earnings QoQ | -17.748 % | |
| Price To Earnings YoY | -22.248 % | |
| Price To Earnings IPRWA | high: 535.496 mean: 146.036 SAP: 137.94 median: 137.28 low: -396.374 |
|
| PE/G Ratio | 10.556 | |
| Price To Sales (P/S) | 35.223 | |
| Price To Sales QoQ | -3.917 % | |
| Price To Sales YoY | 17.204 % | |
| Price To Sales IPRWA | high: 95.267 median: 48.871 mean: 46.415 SAP: 35.223 low: 1.307 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 163.376 | |
| Forward PE/G | 12.502 | |
| Forward P/S | 143.669 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 19.088 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.133 | |
| Asset Turnover Ratio QoQ | 5.856 % | |
| Asset Turnover Ratio YoY | 9.679 % | |
| Asset Turnover Ratio IPRWA | high: 0.414 SAP: 0.133 mean: 0.127 median: 0.124 low: -0.008 |
|
| Receivables Turnover | 1.571 | |
| Receivables Turnover Ratio QoQ | 19.714 % | |
| Receivables Turnover Ratio YoY | 7.86 % | |
| Receivables Turnover Ratio IPRWA | high: 6.055 SAP: 1.571 mean: 1.474 median: 1.265 low: -0.167 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 58.077 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | -23.127 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | 187.869 % | |
| Cash Conversion Cycle Days IPRWA | high: 226.004 mean: -22.548 SAP: -23.127 median: -38.513 low: -211.399 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 5.053 | |
| CapEx To Revenue | -0.022 | |
| CapEx To Depreciation | -0.632 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 42.8 B | |
| Net Invested Capital | $ 42.8 B | |
| Invested Capital | $ 42.8 B | |
| Net Tangible Assets | $ 11.4 B | |
| Net Working Capital | $ 1.8 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.581 | |
| Current Ratio | 1.105 | |
| Current Ratio QoQ | 7.187 % | |
| Current Ratio YoY | 0.522 % | |
| Current Ratio IPRWA | high: 8.127 mean: 1.732 median: 1.401 SAP: 1.105 low: 0.159 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 2.703 | |
| Cost Of Debt | 2.609 % | |
| Interest Coverage Ratio | 9.798 | |
| Interest Coverage Ratio QoQ | -5.203 % | |
| Interest Coverage Ratio YoY | -1.282 % | |
| Interest Coverage Ratio IPRWA | high: 225.0 median: 50.142 mean: 39.169 SAP: 9.798 low: -266.667 |
|
| Operating Cash Flow Ratio | 0.128 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 81.204 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 0.0 % | |
| Revenue Growth | 0.543 % | |
| Revenue Growth QoQ | 250.323 % | |
| Revenue Growth YoY | -75.137 % | |
| Revenue Growth IPRWA | high: 28.215 % mean: 3.227 % median: 1.612 % SAP: 0.543 % low: -13.442 % |
|
| Earnings Growth | 13.068 % | |
| Earnings Growth QoQ | 1037.337 % | |
| Earnings Growth YoY | 10.577 % | |
| Earnings Growth IPRWA | high: 200.0 % SAP: 13.068 % mean: 4.646 % median: 1.918 % low: -181.25 % |
|
| MARGINS | ||
| Gross Margin | 73.502 % | |
| Gross Margin QoQ | 0.226 % | |
| Gross Margin YoY | 0.22 % | |
| Gross Margin IPRWA | high: 90.981 % SAP: 73.502 % mean: 72.477 % median: 69.046 % low: 26.432 % |
|
| EBIT Margin | 33.682 % | |
| EBIT Margin QoQ | 9.763 % | |
| EBIT Margin YoY | 19.266 % | |
| EBIT Margin IPRWA | high: 76.323 % median: 45.059 % mean: 36.315 % SAP: 33.682 % low: -105.646 % |
|
| Return On Sales (ROS) | 27.215 % | |
| Return On Sales QoQ | -0.701 % | |
| Return On Sales YoY | -3.633 % | |
| Return On Sales IPRWA | high: 76.795 % median: 48.873 % mean: 38.018 % SAP: 27.215 % low: -133.444 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 1.3 B | |
| Free Cash Flow Yield | 0.407 % | |
| Free Cash Flow Yield QoQ | -43.551 % | |
| Free Cash Flow Yield YoY | -20.971 % | |
| Free Cash Flow Yield IPRWA | high: 10.114 % median: 0.676 % mean: 0.482 % SAP: 0.407 % low: -10.76 % |
|
| Free Cash Growth | -45.474 % | |
| Free Cash Growth QoQ | 33.901 % | |
| Free Cash Growth YoY | 1091.042 % | |
| Free Cash Growth IPRWA | high: 368.524 % median: 0.372 % mean: -5.612 % SAP: -45.474 % low: -324.945 % |
|
| Free Cash To Net Income | 0.649 | |
| Cash Flow Margin | 24.052 % | |
| Cash Flow To Earnings | 1.089 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.93 % | |
| Return On Assets QoQ | 24.363 % | |
| Return On Assets YoY | 40.191 % | |
| Return On Assets IPRWA | high: 13.583 % median: 4.421 % mean: 3.76 % SAP: 2.93 % low: -19.283 % |
|
| Return On Capital Employed (ROCE) | 5.961 % | |
| Return On Equity (ROE) | 0.047 | |
| Return On Equity QoQ | 13.095 % | |
| Return On Equity YoY | 31.859 % | |
| Return On Equity IPRWA | high: 0.151 median: 0.076 mean: 0.066 SAP: 0.047 low: -0.395 |
|
| DuPont ROE | 4.782 % | |
| Return On Invested Capital (ROIC) | 5.335 % | |
| Return On Invested Capital QoQ | 32.547 % | |
| Return On Invested Capital YoY | -138.514 % | |
| Return On Invested Capital IPRWA | high: 14.226 % median: 6.978 % mean: 5.474 % SAP: 5.335 % low: -12.344 % |
|