Revenue growth has decelerated from 12.1% in 2025Q1 to 6.0% in 2026Q1, even as the company maintains a resilient 73.0% gross margin.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 37.34B | 36.8B | 34.18B | 31.21B | 29.52B | 26.95B | 27.34B | 27.55B | 24.71B | 23.46B | 22.06B | 20.79B | 17.56B | 16.82B | 16.22B | 14.23B | 12.46B | 10.67B | 11.57B | 10.26B | 9.39B | 8.5B | 7.51B | 7.01B | 7.42B | 7.34B | 6.26B | 5.11B | 4.33B | 3.08B | 3.72B |
| Revenue Growth % | 6.24% | 7.68% | 9.51% | 5.72% | 9.52% | -1.41% | -0.78% | 11.51% | 5.32% | 6.34% | 6.11% | 18.41% | 4.43% | 3.65% | 13.98% | 14.19% | 16.79% | -7.8% | 12.83% | 9.21% | 10.48% | 13.23% | 7.08% | -5.49% | 1.03% | 17.27% | 22.45% | 18.22% | 40.3% | -17.17% | - |
| Cost of Goods Sold | 10.16B | 9.99B | 9.24B | 8.67B | 8.04B | 7.22B | 7.89B | 8.36B | 7.46B | 7.05B | 6.58B | 6.25B | 4.98B | 5.03B | 5.07B | 4.35B | 3.89B | 3.51B | 4.03B | 3.41B | 3.16B | 2.91B | 2.59B | 2.53B | 2.82B | 2.85B | 2.25B | 2.01B | 1.76B | 306.16M | 394.38M |
| COGS % of Revenue | - | 27.14% | 27.05% | 27.79% | 27.23% | 26.78% | 28.85% | 30.32% | 30.2% | 30.05% | 29.84% | 30.03% | 28.38% | 29.92% | 31.27% | 30.59% | 31.24% | 32.88% | 34.8% | 33.2% | 33.69% | 34.18% | 34.44% | 36.06% | 37.99% | 38.86% | 35.9% | 39.23% | 40.72% | 9.93% | 10.6% |
| Gross Profit | 27.18B | 26.81B | 24.93B | 22.53B | 21.48B | 19.73B | 19.45B | 19.2B | 17.25B | 16.41B | 15.48B | 14.55B | 12.58B | 11.78B | 11.15B | 9.88B | 8.57B | 7.16B | 7.55B | 6.85B | 6.23B | 5.6B | 4.92B | 4.48B | 4.6B | 4.49B | 4.01B | 3.11B | 2.56B | 2.78B | 3.33B |
| Gross Margin % | 72.79% | 72.86% | 72.95% | 72.21% | 72.77% | 73.22% | 71.16% | 69.68% | 69.8% | 69.95% | 70.16% | 69.97% | 71.63% | 70.08% | 68.72% | 69.41% | 68.76% | 67.12% | 65.2% | 66.8% | 66.31% | 65.82% | 65.56% | 63.94% | 62.01% | 61.14% | 64.1% | 60.77% | 59.28% | 90.07% | 89.4% |
| Gross Profit Growth % | - | 7.55% | 10.64% | 4.9% | 8.86% | 1.44% | 1.32% | 11.32% | 5.09% | 6.01% | 6.4% | 15.66% | 6.74% | 5.7% | 12.86% | 15.27% | 19.64% | -5.09% | 10.13% | 10.01% | 11.31% | 13.67% | 9.8% | -2.55% | 2.47% | 11.85% | 29.17% | 21.18% | -7.66% | -16.55% | - |
| Operating Expenses | 17.14B | 17.19B | 20.27B | 16.73B | 15.57B | 13.43B | 12.83B | 14.72B | 11.54B | 11.53B | 10.35B | 10.3B | 8.25B | 7.3B | 7.11B | 5B | 5.98B | 4.58B | 4.85B | 4.12B | 3.65B | 3.26B | 2.91B | 2.76B | 10.39B | 3.18B | 3.21B | 2.31B | 1.72B | 1.96B | 2.38B |
| OpEx % of Revenue | - | 46.72% | 59.3% | 53.62% | 52.74% | 49.81% | 46.93% | 53.44% | 46.72% | 49.16% | 46.89% | 49.52% | 46.96% | 43.44% | 43.82% | 35.09% | 47.97% | 42.87% | 41.87% | 40.12% | 38.87% | 38.35% | 38.7% | 39.4% | 140.08% | 43.27% | 51.29% | 45.2% | 39.69% | 63.64% | 64.05% |
| Selling, General & Admin | 10.42B | 10.51B | 10.53B | 10.19B | 9.23B | 8.04B | 8.46B | 9.32B | 7.88B | 8B | 7.27B | 6.83B | 5.49B | 5B | 4.86B | 3.8B | 3.28B | 2.76B | 3.17B | 2.67B | 2.37B | 2.18B | 1.89B | 1.77B | 2.03B | 2.18B | 1.99B | 1.39B | 1.56B | 1.86B | 0 |
| SG&A % of Revenue | - | 28.57% | 30.8% | 32.66% | 31.28% | 29.84% | 30.95% | 33.83% | 31.89% | 34.09% | 32.95% | 32.85% | 31.24% | 29.72% | 29.96% | 26.68% | 26.32% | 25.89% | 27.39% | 26.05% | 25.26% | 25.67% | 25.15% | 25.22% | 27.34% | 29.75% | 31.84% | 27.24% | 35.95% | 60.44% | - |
| Research & Development | 6.66B | 6.63B | 6.51B | 6.32B | 6.08B | 5.27B | 4.45B | 4.29B | 3.62B | 3.35B | 3.04B | 2.85B | 2.33B | 2.28B | 2.26B | 1.94B | 1.73B | 1.59B | 1.63B | 1.46B | 1.34B | 1.09B | 1.02B | 994.2M | 910.21M | 899.13M | 968.97M | 745.34M | 0 | 0 | 0 |
| R&D % of Revenue | - | 18.02% | 19.06% | 20.26% | 20.6% | 19.55% | 16.29% | 15.58% | 14.67% | 14.29% | 13.8% | 13.68% | 13.27% | 13.57% | 13.94% | 13.6% | 13.87% | 14.91% | 14.06% | 14.23% | 14.21% | 12.8% | 13.57% | 14.18% | 12.27% | 12.24% | 15.47% | 14.57% | - | - | - |
| Other Operating Expenses | 2M | 49M | 3.23B | 218M | 252M | 113M | -87M | 1.11B | 40M | 182M | 31M | 621M | 430M | 26M | -13M | -738M | 969M | 221M | 49M | -17.15M | -56.07M | -10.13M | -1.76M | 0 | 7.45B | 93.28M | 248.82M | 172.92M | 161.75M | 98.73M | 2.38B |
| Operating Income | 10.04B | 9.62B | 4.67B | 5.8B | 5.91B | 6.31B | 6.62B | 4.47B | 5.7B | 4.88B | 5.13B | 4.25B | 4.33B | 4.48B | 4.04B | 4.88B | 2.59B | 2.59B | 2.7B | 2.74B | 2.58B | 2.34B | 2.02B | 1.72B | -5.79B | 1.31B | 802.32M | 796.03M | 847.46M | 814.9M | 943.63M |
| Operating Margin % | 26.88% | 26.14% | 13.65% | 18.58% | 20.03% | 23.4% | 24.23% | 16.23% | 23.08% | 20.79% | 23.27% | 20.45% | 24.66% | 26.64% | 24.91% | 34.31% | 20.79% | 24.25% | 23.33% | 26.68% | 27.44% | 27.47% | 26.86% | 24.54% | -78.07% | 17.88% | 12.81% | 15.57% | 19.59% | 26.43% | 25.35% |
| Operating Income Growth % | - | 106.22% | -19.56% | -1.94% | -6.25% | -4.76% | 48.07% | -21.57% | 16.94% | -5.02% | 20.77% | -1.82% | -3.3% | 10.84% | -17.26% | 88.5% | 0.12% | -4.18% | -1.33% | 6.19% | 10.38% | 15.79% | 17.19% | 129.71% | -541.25% | 63.62% | 0.79% | -6.07% | 4% | -13.64% | - |
| EBITDA | 11.32B | 10.93B | 5.95B | 7.17B | 7.48B | 7.84B | 8.45B | 6.34B | 7.07B | 6.15B | 6.4B | 5.54B | 5.34B | 5.43B | 4.9B | 5.61B | 3.13B | 3.09B | 3.24B | 3B | 2.79B | 2.54B | 2.23B | 1.94B | -5.57B | 1.59B | 1.03B | 968.95M | 986.1M | 913.63M | 1.11B |
| EBITDA Margin % | 30.3% | 29.7% | 17.4% | 22.98% | 25.35% | 29.11% | 30.92% | 23.03% | 28.59% | 26.21% | 29.02% | 26.65% | 30.42% | 32.29% | 30.23% | 39.4% | 25.07% | 28.93% | 27.99% | 29.23% | 29.72% | 29.86% | 29.65% | 27.61% | -75.09% | 21.69% | 16.38% | 18.95% | 22.8% | 29.63% | 29.77% |
| EBITDA Growth % | 24.31% | 83.87% | -17.11% | -4.16% | -4.61% | -7.2% | 33.24% | -10.19% | 14.9% | -3.97% | 15.56% | 3.74% | -1.64% | 10.73% | -12.55% | 79.46% | 1.23% | -4.72% | 8.05% | 7.43% | 9.95% | 14.03% | 14.99% | 134.75% | -449.81% | 55.29% | 5.84% | -1.74% | 7.93% | -17.56% | - |
| D&A (Non-Cash Add-back) | 1.28B | 1.31B | 1.28B | 1.37B | 1.57B | 1.54B | 1.83B | 1.87B | 1.36B | 1.27B | 1.27B | 1.29B | 1.01B | 951M | 863M | 724M | 534M | 499M | 539M | 261.32M | 213.67M | 203.48M | 209.51M | 215.14M | 221.41M | 279.85M | 223.21M | 172.92M | 138.64M | 98.73M | 164.59M |
| EBIT | 11.05B | 10.76B | 5.79B | 6.65B | 6.71B | 9.45B | 7.58B | 5.03B | 6.02B | 5.32B | 5.13B | 4.24B | 4.51B | 4.58B | 3.97B | 4.93B | 2.48B | 2.55B | 2.75B | 2.74B | 2.58B | 2.34B | 2.02B | 1.72B | -5.75B | 1.31B | 802.32M | 796.03M | 847.46M | 814.9M | 868.96M |
| Net Interest Income | 369.92M | 512.92M | 398M | -456M | -1.39B | 2.18B | -242M | -247M | -274M | -194M | -193M | -5.09M | -55M | -112M | -72M | -62M | -67M | -80M | -51M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 1.7B | 1.84B | 1.43B | 857M | 811M | 3.12B | 113M | 191M | 144M | 94M | 66M | 245.28M | 97M | 69M | 103M | 105M | 56M | 37M | 72M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.33B | 1.32B | 1.03B | 1.31B | 2.2B | 945M | 355M | 438M | 418M | 288M | 259M | 250.36M | 152M | 181M | 175M | 160M | 123M | 117M | 123M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 510M | 650M | 99M | -458M | -1.4B | 2.2B | 597M | 123M | -103M | 152M | -263M | -261M | 24M | -83M | -245M | -117M | -253M | -153M | -77M | 124.83M | 110.62M | -14.35M | 54.22M | 45.6M | 6.9B | -255.13M | 223.38M | 181.86M | 109.14M | 10.86M | 23.58M |
| Pretax Income | 10.55B | 10.27B | 4.76B | 5.34B | 4.51B | 8.51B | 7.22B | 4.6B | 5.6B | 5.03B | 4.87B | 3.99B | 4.36B | 4.4B | 3.8B | 4.77B | 2.34B | 2.44B | 2.62B | 2.86B | 2.69B | 2.32B | 2.07B | 1.77B | 1.11B | 1.06B | 1.03B | 977.89M | 956.6M | 825.76M | 967.21M |
| Pretax Margin % | 28.25% | 27.91% | 13.94% | 17.11% | 15.29% | 31.55% | 26.41% | 16.68% | 22.66% | 21.44% | 22.08% | 19.19% | 24.8% | 26.14% | 23.4% | 33.49% | 18.76% | 22.82% | 22.67% | 27.9% | 28.62% | 27.3% | 27.58% | 25.19% | 14.94% | 14.4% | 16.38% | 19.12% | 22.11% | 26.78% | 25.99% |
| Income Tax | 3.07B | 2.94B | 1.61B | 1.74B | 1.45B | 1.68B | 1.94B | 1.23B | 1.51B | 983M | 1.24B | 935M | 1.07B | 1.07B | 993M | 1.33B | 525M | 685M | 776M | 922.5M | 804.67M | 817.29M | 756.71M | 691.43M | 599.25M | 476.54M | 391.64M | 376.65M | 420.36M | 358.04M | 399.68M |
| Effective Tax Rate % | 29.12% | 28.67% | 33.88% | 32.6% | 32.04% | 19.78% | 26.84% | 26.68% | 26.98% | 19.55% | 25.49% | 23.43% | 24.68% | 24.36% | 26.16% | 27.92% | 22.46% | 28.13% | 29.57% | 32.23% | 29.93% | 35.21% | 36.54% | 39.14% | 54.07% | 45.06% | 38.18% | 38.52% | 43.94% | 43.36% | 41.32% |
| Net Income | 7.31B | 7.16B | 3.12B | 6.14B | 2.28B | 5.26B | 5.14B | 3.32B | 4.08B | 4.01B | 3.64B | 3.06B | 3.28B | 3.33B | 2.8B | 3.44B | 1.81B | 1.75B | 1.85B | 1.92B | 1.87B | 1.5B | 1.31B | 1.08B | 509.07M | 581.06M | 634.06M | 601.24M | 536.24M | 467.72M | 567.54M |
| Net Margin % | 19.58% | 19.46% | 9.14% | 19.67% | 7.74% | 19.5% | 18.82% | 12.05% | 16.53% | 17.08% | 16.51% | 14.74% | 18.68% | 19.78% | 17.28% | 24.13% | 14.53% | 16.38% | 15.96% | 18.74% | 19.92% | 17.59% | 17.44% | 15.33% | 6.86% | 7.91% | 10.13% | 11.76% | 12.4% | 15.17% | 15.25% |
| Net Income Growth % | 27.58% | 129.23% | -49.11% | 168.78% | -56.54% | 2.16% | 54.92% | -18.66% | 1.87% | 10.05% | 18.86% | -6.59% | -1.38% | 18.66% | -18.4% | 89.67% | 3.6% | -5.36% | -3.93% | 2.73% | 25.16% | 14.18% | 21.8% | 111.2% | -12.39% | -8.36% | 5.46% | 12.12% | 14.65% | -17.59% | - |
| Net Income (Continuing) | 7.48B | 7.33B | 3.15B | 3.6B | 3.07B | 6.82B | 5.28B | 3.37B | 4.09B | 4.05B | 3.63B | 3.06B | 3.28B | 3.33B | 2.8B | 3.44B | 1.81B | 1.75B | 1.85B | 1.94B | 1.88B | 1.5B | 1.31B | 1.08B | 509.07M | 581.06M | 634.06M | 601.24M | 536.24M | 467.72M | 568.85M |
| Discontinued Operations | 0 | 0 | 0 | 2.36B | -1.36B | -1.45B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -58.9M | -15.09M | -9.85M | -5.91M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 505M | 487.79M | 368M | 249M | 2.72B | 2.67B | 211M | 85.31M | 45M | 31M | 21M | 28M | 94M | 8M | 8M | 8M | 17M | 21M | 2.16M | 685.87K | 9.45M | 7.61M | 21.95M | 58.6M | 56.23M | 62.94M | 57.39M | 8.74M | 7.25M | 7.36M | 4.24M |
| EPS (Diluted) | 6.26 | 5.99 | 2.65 | 5.20 | 1.95 | 4.56 | 4.35 | 2.80 | 3.42 | 3.35 | 3.03 | 2.56 | 2.74 | 2.78 | 2.37 | 2.89 | 1.53 | 1.50 | 1.55 | 1.59 | 1.52 | 1.20 | 1.05 | 0.87 | 0.41 | 0.46 | 0.50 | 0.47 | 0.43 | 0.37 | 0.45 |
| EPS Growth % | 30.8% | 126.04% | -49.04% | 166.67% | -57.24% | 4.83% | 55.36% | -18.13% | 2.09% | 10.56% | 18.36% | -6.57% | -1.44% | 17.3% | -17.99% | 88.89% | 2% | -3.23% | -2.52% | 4.61% | 26.67% | 14.29% | 20.69% | 112.2% | -10.87% | -8% | 6.38% | 9.3% | 16.22% | -17.78% | - |
| EPS (Basic) | - | 6.04 | 2.68 | 5.26 | 1.96 | 4.56 | 4.35 | 2.80 | 3.42 | 3.36 | 3.03 | 2.56 | 2.74 | 2.79 | 2.37 | 2.89 | 1.53 | 1.50 | 1.55 | 1.59 | 1.53 | 1.21 | 1.05 | 0.87 | 0.41 | 0.46 | 0.50 | 0.48 | 0.43 | 0.37 | 0.45 |
| Diluted Shares Outstanding | 1.17B | 1.18B | 1.18B | 1.18B | 1.18B | 1.18B | 1.18B | 1.19B | 1.19B | 1.2B | 1.2B | 1.2B | 1.2B | 1.2B | 1.19B | 1.19B | 1.19B | 1.19B | 1.19B | 1.21B | 1.23B | 1.25B | 1.24B | 1.24B | 1.26B | 1.26B | 1.26B | 1.25B | 1.25B | 1.25B | 1.25B |
| Basic Shares Outstanding | 1.16B | 1.17B | 1.17B | 1.17B | 1.17B | 1.18B | 1.18B | 1.19B | 1.19B | 1.2B | 1.2B | 1.2B | 1.2B | 1.19B | 1.19B | 1.19B | 1.19B | 1.19B | 1.19B | 1.21B | 1.22B | 1.24B | 1.24B | 1.24B | 1.26B | 1.26B | 1.26B | 1.25B | 1.25B | 1.25B | 1.25B |
| Dividend Payout Ratio | - | 36.79% | 82.11% | 39.01% | 125.44% | 41.51% | 36.23% | 53.9% | 40.93% | 37.4% | 37.84% | 42.95% | 36.4% | 30.46% | 46.74% | 20.76% | 32.8% | 33.98% | 32.16% | 28.92% | 23.88% | 22.77% | 18.99% | 17.3% | 35.85% | 31.14% | 26.13% | 27.6% | 28.03% | 25.96% | 23.54% |
Cloud migration execution lag
As reported in recent financial filings, SAP's revenue growth has exhibited a decelerating trend, moving from a 12.1% year-over-year increase in 2025Q1 to 6.0% by 2026Q1, reflecting the inherent friction of transitioning legacy license-based customers toward ratable, subscription-heavy cloud revenue models across the global enterprise portfolio.
The deceleration in top-line growth suggests that the company is navigating the 'S-curve' of cloud adoption, where the loss of upfront license revenue creates a temporary headwind against subscription gains. Investors should monitor whether the current growth rate stabilizes as the installed base completes its migration to S/4HANA, as this will determine the long-term durability of the company's recurring revenue stream.
Based on the provided income statement data, SAP has maintained a relatively stable gross margin profile, hovering near 73% despite the increased reliance on third-party hyperscaler infrastructure, which suggests that the company retains significant pricing power within its core ERP and supply chain software segments.
The consistency of these gross margins indicates that the company is successfully offsetting the higher cost of cloud delivery through operational efficiencies or premium pricing. However, the potential for margin compression remains if hyperscaler costs escalate faster than the company can pass those expenses on to its enterprise client base.
According to the latest quarterly figures, SAP has demonstrated improved operating leverage, with operating income scaling to $2.8 billion in 2026Q1 from $787 million in 2024Q1, indicating that management is successfully managing the overhead associated with its global sales force and research and development initiatives.
The expansion of operating margins from 9.8% in 2024Q1 to 28.8% in 2026Q1 suggests that the company is beginning to realize the benefits of its cloud-native engineering pivot. This trend warrants further investigation to determine if these gains are sustainable or if they are partially driven by temporary reductions in discretionary spending.
As evidenced by the income statement data, SAP's net income has experienced significant volatility, influenced by substantial share-based compensation expenses that reached as high as $688 million in 2024Q1, which complicates the assessment of true underlying profitability and shareholder dilution for long-term institutional investors.
The fluctuation in net income, including the negative result in 2024Q1, highlights the impact of non-operating items and restructuring charges on the bottom line. Investors should focus on the gap between IFRS net income and non-IFRS metrics to ensure that share-based compensation is not masking underlying operational margin erosion.
Based on an analysis of the reported figures, the primary risk to the current narrative is the potential for 'double-running' costs to persist longer than anticipated, as the company continues to support legacy data centers while simultaneously scaling its cloud-native infrastructure for the S/4HANA migration.
Short-sellers may focus on the potential for margin compression if the company fails to sunset legacy support infrastructure at the projected pace. This would force the company to carry redundant cost structures, potentially undermining the current trend of operating margin expansion and disappointing market expectations for long-term profitability.
Quick answers to the most common questions about buying SAP stock.
For fiscal year 2025, SAP SE (SAP) reported total revenue of $36.80B. This represents a 888.7% increase compared to $3.72B in 1996.
SAP SE (SAP) is profitable, generating $7.16B in net income for the fiscal year ending 2025 with a net profit margin of 19.5%.
SAP SE (SAP) reported an operating income of $9.62B, resulting in an operating profit margin of 26.1%. This margin reflects the operational efficiency of the business before interest and taxes.
SAP SE (SAP) generated $26.81B in gross profit for the year, representing a gross profit margin of 72.9%. This demonstrates the company's core pricing power and production efficiency.