SAP SE
Enterprise softwareFounded 1972- Updated June 2026
Reviewed by Swet Parvadiya
Last reviewed: June 2026
CorpDigest
SAP SE
Financial Performance
Last reviewed: June 2026 · By Swet Parvadiya
Revenue
$39.7B
Market Cap
$210.0B
Net Income
$7.9B
Employees
109,000
Revenue of $39.7 billion in FY2025, with $7.9 billion in net income — a 19.9 percent net margin — reflects both the scale of the subscription software business and the profitability that emerges when cloud migration momentum begins to reduce the professional services and support costs that legacy on-premise deployments require. Revenue grew 28 percent from $31.2 billion in 2023 to $39.7 billion in 2025, an acceleration driven by the S/4HANA cloud migration wave. Cloud subscription revenue is the highest-margin component of SAP's revenue mix: once a customer is on S/4HANA cloud, the recurring subscription fee arrives with minimal incremental cost. Traditional perpetual license revenue — the model where customers paid once for software rights and then paid maintenance fees annually — is declining as customers migrate. The transition creates near-term revenue recognition complexity: a perpetual license pays upfront, while a cloud subscription pays over three to five years. The $210 billion market capitalization against $39.7 billion in annual revenue — a 5.3x price-to-sales multiple — reflects investor confidence that the migration wave through 2027 sustains double-digit cloud revenue growth for multiple years, followed by a stable high-margin subscription base. The Q1 2026 cloud revenue growth of 27 percent, the leading indicator for the migration trajectory, validates that confidence. The 2021 US export control settlement and the 2010 Oracle TomorrowNow IP lawsuit are the two most significant legal events in SAP's financial history. The Oracle settlement was ultimately $356 million — significant but not balance-sheet-threatening for a company of SAP's size. The export control settlement required modifications to compliance procedures for customers in sanctioned markets, adding operational complexity that has since become standard practice across enterprise software companies.
Revenue Trend Analysis
YoY Change
+7.7%
8-Year CAGR
+4.4%
Peak Year
2025
Trend
Mostly Growing
SAP SE has reported revenue across 9 fiscal years, compounding at +4.4% annually over 8 years. The most recent year saw a 7.7% increase versus the prior year. Revenue peaked in 2025 at $39.7B. Out of 8 reported periods, 5 showed growth and 3 showed a decline.
| Fiscal Year | Revenue | Net Income | YoY Change |
|---|---|---|---|
| FY2025 | $39.7B | $7.9B | +7.7% |
| FY2024 | $36.9B | — | +9.5% |
| FY2023 | $33.7B | — | +5.7% |
| FY2022 | $31.9B | — | +9.5% |
| FY2021 | $29.1B | — | -1.4% |
| FY2020 | $29.5B | — | -0.8% |
| FY2019 | $29.8B | — | +11.5% |
| FY2018 | $26.7B | — | -5.4% |
| FY2017 | $28.2B | — | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
SAP reported revenue of 34.2 billion euros for fiscal 2024, equivalent to approximately $39.7 billion at average exchange rates, up 10 percent year over year and up 11 percent at constant currencies from 31.2 billion euros in 2023. Cloud revenue, the strategic growth engine, reached 17.1 billion euros, up 25 percent at constant currencies and now constituting 50 percent of total revenue, a milestone the company had been targeting for several years. Software licenses and support contributed 11.2 billion euros, with support revenue continuing to dominate while new license sales declined as expected. Services revenue, including consulting and training, contributed 4.5 billion euros. Current cloud backlog, a forward-looking indicator of contracted but not yet recognized cloud revenue, reached 16.2 billion euros at year-end 2024, up 29 percent. SAP raised its 2025 guidance to cloud revenue growth of 26 to 28 percent at constant currencies and total revenue growth of 11 to 13 percent. The 2024 revenue compares to approximately 28 billion euros in 2020 when Christian Klein took sole CEO responsibility, reflecting roughly 22 percent compound growth across the four years driven primarily by cloud acceleration. Operating profit on a non-IFRS basis reached approximately 8.2 billion euros.
SAP's market capitalization stood at approximately 250 billion euros, or roughly $270 billion at late 2024 exchange rates, making SAP the most valuable European technology company by a significant margin and one of the most valuable software companies globally. The share price has more than doubled from a 2022 trough below 90 euros to above 220 euros by late 2024, driven by accelerating cloud revenue growth, the successful Qualtrics divestiture, expanding operating margins, and the broader European technology rerating. SAP overtook LVMH in 2024 to become the largest company by market capitalization listed on a European exchange. Shares are listed on both the Frankfurt Stock Exchange under SAP and the New York Stock Exchange under SAP, and SAP is a constituent of the DAX 40, Euro Stoxx 50, and the Stoxx Europe 600 indices. The largest disclosed shareholders include the Hasso Plattner Foundation with approximately 6.5 percent, Dietmar Hopp through his investment vehicles with several percent, and a long tail of international institutional investors led by BlackRock, Vanguard, and State Street. SAP has historically returned capital primarily through dividends and selective share buybacks, with the dividend increased annually. SAP announced a new share repurchase program of up to 5 billion euros in 2024.
SAP reported non-IFRS operating profit of approximately 8.2 billion euros for fiscal 2024, equivalent to a non-IFRS operating margin of approximately 24 percent of revenue, up from roughly 22 percent in 2023. IFRS operating profit was lower at approximately 4.6 billion euros, with the difference primarily reflecting share-based compensation expense of approximately 2.3 billion euros and restructuring charges related to the 2024 transformation program that affected roughly 8,000 employees. Cloud gross margin reached approximately 75 percent on a non-IFRS basis in 2024, continuing to expand from below 70 percent two years earlier as cloud scale increased and the SAP HANA Cloud infrastructure costs were optimized through partnerships with hyperscalers. Software support gross margin remains in the high 80s percent range, although the absolute revenue is gradually declining. SAP has guided to non-IFRS operating profit of 10.3 to 10.6 billion euros for 2025, representing margin expansion as the cloud business scales and restructuring benefits flow through. The free cash flow target was raised to approximately 8 billion euros for 2025. SAP has indicated mid-term aspirations of greater than 12 billion euros in non-IFRS operating profit by 2027, supporting continued capital returns through dividends and the 5 billion euro share buyback announced in 2024.
SAP employed approximately 109,000 people globally as of the end of 2024, distributed across more than 75 countries with the largest concentrations in Germany at roughly 26,000 employees, primarily at the Walldorf headquarters; India at approximately 14,000, centered on Bangalore and Gurgaon development hubs; the United States at roughly 15,000, including the Newtown Square, Pennsylvania headquarters of SAP America and additional locations in Palo Alto, New York, and Burlington; plus large workforces in China, Brazil, France, the United Kingdom, Czech Republic, Mexico, and Japan. The headcount reflects the impact of the 2024 transformation program announced in January 2024, which targeted approximately 8,000 position reductions globally through voluntary departures and selective involuntary terminations, partially offset by approximately 4,000 to 5,000 net new hires in AI, cloud delivery, and customer success roles. The 2024 program cost approximately 3 billion euros in one-time charges and is intended to free resources for AI and cloud growth investment while modestly reducing total headcount. SAP also significantly expanded the Joule and AI engineering teams in 2024 and 2025, with new hubs in Berlin, Bangalore, and Walldorf. The German workforce remains the largest by country and is covered by a strong works council under the Mitbestimmung co-determination framework.
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CorpDigest. "SAP SE Revenue & Financials." CorpDigest, https://corpdigest.com/company/sap/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>SAP SE reported $40B in revenue (FY2025).</strong><br>Source: <a href="https://corpdigest.com/company/sap/financials" target="_blank" rel="noopener">CorpDigest — SAP SE financials</a></div>