SAP SE (SAPN) AI Stock Analysis

SAP SE

(BMV:SAPN)

Rating:―N/A

Action:N/A

Date:―

No summary available

Positive Factors

Mission-critical recurring modelSAP’s software is embedded in customers’ core financial and operating processes, making replacement difficult and supporting renewal economics. Recurring cloud subscriptions, maintenance revenue, and cross-selling across a broad enterprise suite provide a durable foundation for predictable revenue and customer retention.

Negative Factors

Cloud margin pressureCloud growth is requiring continued investment in infrastructure, software, acquisitions, and specialized offerings. If automation, model switching, and vendor management do not offset these costs, lower cloud margins could constrain operating leverage and reduce the earnings benefit of continued migration.

SAP SE (SAPN) vs. SPDR S&P 500 ETF (SPY)

Market Cap: MXN 273.85B
Dividend Yield: 1.15%
Average Volume (3M): 366
Price to Earnings (P/E): 29.8
Beta (1Y): 0.16
Revenue Growth: 1.81%
EPS Growth: 9.87%
Country: Mexico
Employees: 113,076
Sector: Technology
Sector Strength: 61
Industry: Software - Application

SAP SE Business Overview & Revenue Model

Company Description

SAP SE, founded in Walldorf, Germany, in 1972, is a global provider of diverse software applications, technology, and services. The company's core enterprise resource planning (ERP) platform, SAP S/4HANA, offers robust functionalities for finance, ri...

SAP SE Earnings Call Summary

Earnings Call Date:Oct 20, 2026(Q3-2026)|% Change Since:7.20%|Next Earnings Date:Jan 27, 2027

Earnings Call SentimentPositive

The call was strongly positive, supported by record quarterly revenue, 25% cloud revenue growth, 26% cloud backlog growth, market share gains, broad AI adoption, strong customer wins, and improved cash generation. The main negatives were lower cloud gross margin, declines in services and software licenses revenue, macroeconomic and Q4 booking uncertainty, higher accounts receivable, and the need to continue improving AI agents and managing investment-related margin pressures. Highlights significantly outweighed lowlights.

Positive Updates

Record Revenue and Strong Profit Growth

Q3 total revenue reached €10.3 billion, up 12%, marking the first time in SAP's history that quarterly revenue crossed €10 billion. Operating profit grew 18% to more than €3 billion, while non-IFRS operating profit surpassed €3 billion.

Negative Updates

Cloud Gross Margin Decline

IFRS cloud gross margin was 73.9% and non-IFRS cloud gross margin was 74.3%, down 0.7 percentage points year on year.

Company Guidance

SAP expects a slight deceleration in constant currencies current cloud backlog growth in 2026, while reaffirming its previous guidance for current cloud backlog, operating profit, and free cash flow; it expects to trend towards the upper end of its cloud and software revenue outlook, implying around 23% cloud revenue growth in Q4, and continues to plan for total revenue growth to accelerate in 2027. Q4 accounts for around 50% of annual bookings volume, full-year free cash flow guidance remains €10 billion, SAP expects up to €3 billion efficiency gains over the course of the next 2 years, and remains firmly committed to containing growth in total operating expenses, including cost of goods sold, to 80% to 90% growth of the top line.

SAP SE Risk Analysis

SAP SE disclosed 13 risk factors in its most recent earnings report. SAP SE reported the most risks in the "Tech & Innovation" category.

Tech & Innovation - Risks related to the company’s reliance on technology and ability to make innovative products

Latest Risks Added

0 New Risks

SAP SE Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

MX:SAPN against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRM	86Outperform	$188.61B	20.83	20.15%	0.76%	11.23%	58.19%
ADP	83Outperform	$116.43B	25.98	75.85%	2.31%	6.50%	11.10%
NOW	73Outperform	$109.11B	75.08	11.49%	―	21.82%	-16.58%
WDAY	73Outperform	$47.67B	39.96	16.78%	―	13.83%	126.19%
SNOW	71Outperform	$107.99B	-96.25	-53.56%	―	32.04%	23.46%
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

MX:SAPN and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
MX:SAPN	SAP SE (US)	4420.00	-382.46	-7.96%
ADP	Automatic Data Processing	293.84	43.92	17.58%
CRM	Salesforce.com	229.17	-29.97	-11.57%
WDAY	Workday	197.82	-39.86	-16.77%
NOW	ServiceNow Inc	105.12	-77.65	-42.48%
SNOW	Snowflake, Inc.	306.08	28.94	10.44%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

SAP SE AI Stock Analysis