Sage Group vs SAP: Revenue, Profit and Business Model
Sage Group had ~$3.3B of annual revenue in FY2025 and ~$487.1M of net income. SAP had ~$41.6B of annual revenue in FY2025 and ~$8.1B of net income.
Latest financial snapshot
Sage Group
- Latest annual revenue
- ~$3.3B (FY2025)
- Net income
- ~$487.1M
- Net margin
- 14.7%
- Revenue growth
- +8.0% a year, FY2021–FY2025
SAP
- Latest annual revenue
- ~$41.6B (FY2025)
- Net income
- ~$8.1B
- Net margin
- 19.5%
- Revenue growth
- +5.8% a year, FY2016–FY2025
Financial summary
Sage Group
Sage moved from one-off desktop licences to subscriptions over the past decade. That shift lowered reported growth for a few years but left the group with a highly recurring revenue base. In FY25 (year to 30 September 2025), underlying total revenue grew 10% to ~$3.32 billion (£2,513 million), annualised recurring revenue rose 11% to ~$3.4 billion (£2,574 million), underlying operating profit rose 17% to ~$792 million (£600 million), and the margin widened by 1.5 points to 23.9%. Underlying basic EPS rose 18% to 43.2p. Sage paid a full-year dividend of 21.85p and announced a buyback of up to $396 million (£300 million). In the first half of FY26, revenue rose 11% to ~$1.8 billion (£1,363 million), underlying operating profit rose 15%, and the interim dividend was raised 8%. Nine-month FY26 revenue was ~$2.72 billion (£2,062 million), up 11%. Full-year FY26 results are expected in November 2026. The Sage Group plc is a massive British multinational enterprise software company, sustaining a market valuation typically over $10 billion and acting as the UK's second-largest technology company.
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. SAP is Europe's largest software company, sustaining a robust market valuation generally over $200 billion through its enterprise resource planning dominance.
Revenue and profit by year
Sage Group
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | ~$3.3B | ~$487.1M | 14.7% | +7.8% | Source |
| FY2024 | ~$3.1B | ~$426.4M | 13.9% | +6.8% | Source |
| FY2023 | ~$2.9B | ~$278.5M | 9.7% | +12.2% | Source |
| FY2022 | ~$2.6B | ~$343.2M | 13.4% | +5.5% | Source |
| FY2021 | ~$2.4B | ~$376.2M | 15.4% | — | 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
Sage Group
- Recurring Revenue
97% (FY25)
About $3.22 billion (GBP 2,436 million) of about $3.32 billion (GBP 2,513 million) in FY25, with software subscriptions making up about 83% of the group.
- Professional Services and Licences
~3% (FY25)
The remaining about $102 million (GBP 77 million) came mostly from professional services and licences.
SAP
- Cloud subscriptions
- Software support
- Software licenses
- Professional services
- Business AI and platform add-ons
Business model and strategy
Sage Group
How it makes money
Sage makes money mainly from software subscriptions. In FY25, recurring revenue was ~$3.22 billion (£2,436 million), or 97% of the ~$3.32 billion (£2,513 million) total, and software subscription revenue made up about 83% of the group. The remaining ~$102 million (£77 million) came mostly from professional services and licences.
Growth strategy
Sage's growth strategy has three parts: sell Sage Intacct to more mid-sized companies, especially businesses outgrowing QuickBooks, and in new countries; add AI features through Sage Copilot and AI agents that customers can pay more for; and move remaining desktop users to cloud-connected subscriptions. Bolt-on acquisitions, such as Lockstep (2022) and Brightpearl (2022), add workflow and commerce capabilities.
Competitive advantage
Sage's edge rests on local compliance and switching costs. Each country Sage serves has its own tax, payroll and e-invoicing rules, and Sage has built that compliance into its products over four decades, for example supporting HMRC's Making Tax Digital rules in the UK.
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 Sage Group vs SAP
Which company has higher revenue — The Sage Group plc or SAP SE?
The Sage Group plc had ~$3.3B (FY2025), while SAP SE had ~$41.6B (FY2025). By latest annual revenue, SAP SE is the larger business, with The Sage Group plc showing a smaller revenue base.
What is the market cap of The Sage Group plc vs SAP SE?
The Sage Group plc's market capitalisation stands at $11.5B, while SAP SE's is $238.9B. SAP SE carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to The Sage Group plc.
How does revenue per employee compare for The Sage Group plc and SAP SE?
The Sage Group plc has $276k / employee in revenue per employee, while SAP SE has $371k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do The Sage Group plc and SAP SE make money?
The Sage Group plc and SAP SE generate revenue in fundamentally different ways. The Sage Group plc: Sage makes money mainly from software subscriptions. SAP SE: SAP earns most of its money from recurring fees.
Which company is valued higher relative to revenue — The Sage Group plc or SAP SE?
On a price-to-sales (P/S) basis, The Sage Group plc trades at 3.5x P/S and SAP SE at 5.7x P/S. SAP SE commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to The Sage Group plc. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is The Sage Group plc bigger than SAP SE?
By last reported revenue, SAP SE (~$41.6B (FY2025)) is the larger company compared to The Sage Group plc (~$3.3B (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 Sage Group vs SAP overview