Recent News
November 17, 2025: SAP unveiled a wave of SAP Business AI innovations at SAP TechEd, including the SAP‑RPT‑1 relational foundation model and expanded SAP HANA Cloud capabilities. December 31, 2025: SAP extended the transition period for S/4HANA Compatibility Packs to the end of May 2026 to ease customer migrations. January 8, 2026: At NRF 2026 SAP announced AI enhancements for retail planning, operations and commerce. January 26, 2026: SAP positioned as a Leader in Gartner’s 2026 Magic Quadrant for Source‑to‑Pay Suites.
Technical Analysis
ADX at 16.59 signals no established trend, which limits conviction for a directional breakout despite mixed momentum signals.
Directional indicators show bullish structure: DI+ experienced a dip‑and‑reverse (DI+ increasing) and DI‑ peaked‑and‑reversed (DI‑ decreasing), implying directional pressure favoring upside relative to recent price action.
MACD shows a dip‑and‑reverse, indicating bullish momentum development; MACD remains negative at −3.22 and sits below the signal line (−2.79), so momentum lacks full confirmation from a bullish cross.
MRO reads 8.91 (positive), which indicates the price sits above WMDST’s target framework and creates potential mean‑reversion pressure even as short‑term momentum attempts to recover.
RSI at 43.01 with a dip‑and‑reverse suggests momentum attempting to climb from the lower neutral range, leaving room for further upside before approaching overbought levels.
Price sits at $233.94, below the 200‑day average ($271.29) and near the 20‑day average ($237.08); the 12‑day EMA shows a dip‑and‑reverse, consistent with the early momentum pickup but still under longer‑term resistance zones (Ichimoku Senkou cloud center ~ $251–$257).
Fundamental Analysis
Profitability: EBIT totaled $3,057,000,000 with an EBIT margin of 33.68%, rising 9.76% QoQ and 19.27% YoY. The EBIT margin sits below the industry peer mean (36.32%) and well below the industry peer median (45.06%), indicating margin expansion but a gap versus peer profitability medians.
Top line and growth: Total revenue reached $9,076,000,000. Reported revenue growth stands at 0.54%, while revenue growth QoQ registers 250.32% and revenue growth YoY shows −75.14%; those QoQ and YoY deltas reflect timing and comparability effects in the reported periods and warrant attention when forecasting near‑term revenue trends.
Capital and cash flow: Cash on hand equals $8,554,000,000 with cash and short‑term investments of $9,934,000,000. Operating cash flow reached $1,502,000,000 and free cash flow totaled $1,301,000,000, producing a free cash flow yield of 0.41%. Free cash flow growth YoY improved by 10.91%, while free cash flow yield fell QoQ by 43.55%.
Returns and leverage: Return on equity sits at 4.68%, up 31.86% YoY, and return on assets at 2.93%, up 40.19% YoY. Debt to equity measures 21.31% and debt to EBITDA equals 2.70x; interest coverage reads 9.80x, indicating manageable leverage and a comfortable interest servicing profile.
Market multiples and valuation context: Trailing PE stands at 137.94—near the industry peer median (137.28) and below the industry peer mean (146.04). Price‑to‑book equals 7.47, below the industry peer mean (12.61). WMDST values the stock as fair‑valued, reflecting robust margins, elevated multiples, and modest free cash flow yield.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-22 |
| NEXT REPORT DATE: | 2026-01-21 |
| 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 | $ 2.8 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 | $ 1.64 | |
| EPS Actual | $ 1.99 | |
| EPS Difference | $ 0.35 | |
| EPS Surprise | 21.341 % | |
| Forward EPS | $ 2.12 | |
| 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 % |
|