SAP SE (SAP) AI Stock Analysis

SAP SE operates globally as an enterprise application software provider across three main segments: Applications, Technology & Support; Qualtrics; and Services. Its flagship ERP suite, SAP S/4HANA, integrates artificial intelligence, machine learning, and analytics to optimize business workflows. The company also offers human experience management through SAP SuccessFactors, and intelligent spend management through SAP Ariba, SAP Concur, and SAP Fieldglass. Additionally, SAP provides the Business Technology Platform for custom cloud-native app development, the SAP Business Network for supply chain connectivity, and modular Industry Cloud solutions.

Between FY2021 and FY2025, SAP increased annual revenue from $26.95B to $36.80B, representing a 5-year compound annual growth rate of 6.1%. Over that period, net income rose from $5.26B to $7.16B, while operating margin recovered from a low of 13.6% in FY2024 to 26.1% in FY2025. In the trailing twelve months ended June 30, 2026, revenue reached $38.19B with a profit margin of 20.4% and an operating margin of 27.6%. For the latest quarter, quarterly revenue expanded 9.4% year-over-year while quarterly earnings grew 30.6%.

As of June 30, 2026, SAP held $11.62B in cash and short-term investments against total debt of $9.94B, resulting in net cash of $1.69B. The company maintains a conservative capital structure with a debt-to-equity ratio of 0.22 and a current ratio of 1.15. In FY2025, operating cash flow was $9.16B and free cash flow reached $8.42B. Capital allocation that year included $739.0M in capital expenditures, $1.94B in share buybacks, and $2.74B in dividends paid.

At $224.29, SAP trades at a trailing price-to-earnings multiple of 28.8x and a forward multiple of 33.1x, higher than the median of its US-listed Technology peers at 18.8x. Its enterprise value-to-EBITDA ratio of 22.9x and price-to-sales of 6.8x also sit above the peer medians of 16.6x and 2.8x. Over the past year, the stock fell 15.4%, lagging the 16.8% return of the S&P 500, while over five years it gained 67.1% compared to 83.0% for the index.

SAP pays an annual dividend with a forward rate of $2.93 per share, representing a 1.31% yield. The payout ratio stands at 38.3%, supported by 31 consecutive years of dividend payments. Over the past 5 years, the dividend has grown at an annualized rate of 9.0%. The last ex-dividend date was May 5, 2026.

Wall Street coverage includes 9 Strong Buy, 4 Buy, and 3 Hold ratings, with zero Sell recommendations. The mean price target of $261.17 implies a 16.4% upside compared to the last close of $224.29. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $40.27B and EPS of $8.15. SAP has beaten EPS expectations in 3 of the last 4 quarters, with its next earnings release scheduled for October 21, 2026.

This page is an AI-written research summary of SAP SE (SAP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: SAP income statement, SAP balance sheet, SAP key metrics, SAP analyst forecast, SAP chart. See the SAP stock overview for the latest quote and news.