Oracle vs SAP: Revenue, Profit and Business Model
Oracle reported $67.4B of revenue in FY2026 and $17.1B of net income. SAP reported ~$41.6B of revenue in FY2025 and ~$8.1B of net income.
Latest financial snapshot
Financial summary
Oracle
Oracle's revenue grew from $39.1 billion in FY2020 to $57.4 billion in FY2025 and $67.36 billion in FY2026, when net income was $17.09 billion. Growth is now driven by cloud: Q1 FY2027 cloud revenue (IaaS plus SaaS) was $11.6 billion, up 62%, and operating cash flow was a record $23 billion for the quarter. The other side of the ledger is capex. FY2026 capital spending of $55.7 billion pushed free cash flow negative, and Oracle has funded the gap with bond issuance and equity sales. Management guides to at least $90 billion of FY2027 revenue and non-GAAP EPS of $8.10.
SAP
SAP has spent most of the 2020s turning license-and-maintenance revenue into cloud subscriptions. The shift hurt margins early on: in October 2020 SAP cut its outlook and pushed back its margin targets, and its shares dropped about 22% in a day. The model has since matured. Cloud revenue rose from ~$9.15 billion (EUR 8.1 billion) in 2020 to ~$23.7 billion (EUR 21.0 billion) in 2025, total revenue reached ~$41.6 billion (EUR 36.8 billion), and IFRS profit after tax attributable to owners was ~$8.14 billion (EUR 7.2 billion). For 2026 SAP guided to ~$29.2 billion (EUR 25.8 billion) to ~$29.6 billion (EUR 26.2 billion) of cloud revenue and about $11.3 billion (EUR 10 billion) of free cash flow.
Revenue and profit by year
Oracle
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | $67.4B | $17.1B | 25.4% | +17.3% | Source |
| FY2025 | $57.4B | $12.4B | 21.7% | +8.4% | Source |
| FY2024 | $53B | $10.5B | 19.8% | +6.0% | Source |
| FY2023 | $50B | $8.5B | 17.0% | +17.7% | Source |
| FY2022 | $42.4B | $6.7B | 15.8% | +4.8% | Source |
| FY2021 | $40.5B | $13.7B | 34.0% | +3.6% | Source |
| FY2020 | $39.1B | $10.1B | 25.9% | -1.1% | Source |
| FY2019 | $39.5B | $11.1B | 28.1% | +0.3% | Source |
| FY2018 | $39.4B | $3.6B | 9.1% | +4.2% | Source |
| FY2017 | $37.8B | $9.5B | 25.0% | — | Source |
SAP
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$41.6B | ~$8.1B | 19.5% | +7.7% | Source |
| FY2024 | ~$38.6B | ~$3.5B | 9.1% | +9.5% | Source |
| FY2023 | ~$35.3B | ~$6.9B | 19.7% | +5.7% | Source |
| FY2022 | ~$33.4B | ~$2.6B | 7.7% | +9.5% | Source |
| FY2021 | ~$30.5B | ~$5.9B | 19.5% | -1.4% | Source |
| FY2020 | ~$30.9B | ~$5.8B | 18.8% | -0.8% | Source |
| FY2019 | ~$31.1B | ~$3.8B | 12.1% | +11.5% | Source |
| FY2018 | ~$27.9B | ~$4.6B | 16.5% | +5.3% | Source |
| FY2017 | ~$26.5B | ~$4.5B | 17.1% | +6.3% | Source |
| FY2016 | ~$24.9B | ~$4.1B | 16.5% | — | Source |
Where the revenue comes from
Oracle
- Cloud Services and License SupportLargest
OCI, SaaS, database services, and recurring support revenue.
- Cloud License and On-Premise LicenseMaterial
New licenses and cloud license rights for enterprise software.
- ServicesMaterial
Consulting, support, and implementation work.
- HardwareSmaller
Exadata, engineered systems, and related hardware products.
SAP
- Cloud subscriptions
- Software support
- Software licenses
- Professional services
- Business AI and platform add-ons
Business model and strategy
Oracle
How it makes money
Oracle sells to businesses and governments, not consumers. Its largest revenue line is cloud services and license support: customers pay recurring fees for OCI compute, storage, GPUs and database services, for Fusion Cloud ERP, HCM, SCM and NetSuite subscriptions, and for annual support on licensed Oracle Database and middleware.
Growth strategy
Oracle's growth plan rests on renting AI training and inference capacity at very large scale. It is building data centers for OpenAI under the Stargate program (a partnership OpenAI describes as over $300 billion across five years and up to 4.5 gigawatts), and it also serves xAI, Meta, NVIDIA and AMD workloads.
Competitive advantage
Oracle's edge comes from its installed base. Oracle Database runs core financial, telecom and government systems, and moving those workloads is slow, expensive and risky, which keeps support revenue recurring. OCI adds a price-performance pitch built on bare-metal servers and RDMA networking for large GPU clusters, and Oracle can offer the same database inside rival clouds.
SAP
How it makes money
SAP earns most of its money from recurring fees. Cloud subscriptions (SaaS, PaaS and a small IaaS business) are now the largest line, led by the Cloud ERP Suite, which produced ~$6.21 billion (EUR 5.5 billion) of Q2 2026's ~$7.12 billion (EUR 6.3 billion) cloud revenue. Software support contracts on older on-premise licenses are the second pillar, but they are shrinking as customers migrate through RISE with SAP.
Growth strategy
SAP's growth strategy has three parts. First, migrate on-premise ERP customers to cloud through RISE with SAP for large enterprises and GROW with SAP for mid-market companies. Second, sell data and AI on top of that core: SAP Business Data Cloud, the Joule assistant and agents, and the Business AI platform. Third, use targeted acquisitions to fill gaps, including WalkMe in 2024 and Dremio and Prior Labs in 2026.
Competitive advantage
SAP's advantage comes from switching costs and process depth. Once a manufacturer or retailer has run finance, supply chain and procurement on SAP for years, its data models, customizations, controls and staff skills are all tied to the platform, and replacing it is a multi-year project.
Questions about Oracle vs SAP
Which company has higher revenue — Oracle Corporation or SAP SE?
Oracle Corporation reported $67.4B (FY2026), while SAP SE reported ~$41.6B (FY2025). By last reported revenue, Oracle Corporation is the larger business, with SAP SE reporting a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Oracle Corporation vs SAP SE?
Oracle Corporation's market capitalisation stands at $393.6B, while SAP SE's is $238.9B. Oracle Corporation carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to SAP SE.
Which is more financially efficient — Oracle Corporation or SAP SE?
Oracle Corporation generates $478k / employee in revenue per employee, while SAP SE generates $371k / employee. Oracle Corporation shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Oracle Corporation and SAP SE make money?
Oracle Corporation and SAP SE generate revenue in fundamentally different ways. Oracle Corporation: Oracle sells to businesses and governments, not consumers. SAP SE: SAP earns most of its money from recurring fees.
Which company is valued higher relative to revenue — Oracle Corporation or SAP SE?
On a price-to-sales (P/S) basis, Oracle Corporation trades at 5.8x P/S and SAP SE at 5.7x P/S. Oracle Corporation commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to SAP SE. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Oracle Corporation bigger than SAP SE?
By last reported revenue, Oracle Corporation ($67.4B (FY2026)) is the larger company compared to SAP SE (~$41.6B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Oracle vs SAP overview