SAP SEMEX:SAP1N 74 Gross Margin % is 72.98% as of Mar. 2026, which is 2% above its 10-year median of 71.69. GuruFocus rates MEX:SAP1N with a GF Score™ of 74/100 and a GF Value™ of MXN5,652.94. Among 2,683 Software companies, SAP SE ranks better than 82.33% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. SAP SE's Gross Profit for the
three
months ended in Mar. 2026 was MXN145,366 Mil. SAP SE's Revenue for the
three
months ended in Mar. 2026 was MXN199,194 Mil. Therefore, SAP SE's Gross Margin % for the quarter that ended in Mar. 2026 was 72.98%.
The historical rank and industry rank for SAP SE's Gross Margin % or its related term are showing as below:
MEX:SAP1N'
s Gross Margin % Range Over the Past 10 Years
Min: 69.68 Med: 71.69 Max: 73.22
Current: 72.79
During the past 13 years, the highestGross Margin % of SAP SE was 73.22%. The lowest was 69.68%. And the median was 71.69%.
MEX:SAP1N's Gross Margin % is ranked better than 82.33% of 2683
companies
in the Software industry
Industry Median: 40.45
vs MEX:SAP1N: 72.79
SAP SE had a gross margin of 72.98% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for SAP SE was 0.30% per year.
SAP SE (MEX:SAP1N) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
SAP SE had a gross margin of 72.98% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
SAP SE Gross Margin % Related Terms
SAP SE Gross Margin % Historical Data
* Premium members only.
The historical data trend for SAP SE's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MEX:SAP1N vs CRM, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, SAP SE's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
SAP SE Gross Margin % vs Software Industry
For the Software industry and Technology sector, SAP SE's Gross Margin % distribution charts can be found below:
* The bar in red indicates where SAP SE's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
SAP SE (MEX:SAP1N) has a Gross Margin % of 72.98% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on SAP SE and its competitors. This is near median its historical median of 71.69. Over the past decade, SAP SE's Gross Margin % has ranged from 69.68 to 73.22. According to the industry distribution chart, SAP SE ranks #474 out of 2683 companies in the Software industry, placing it in the top 17.7%.
Is SAP SE's Gross Margin % too high?
SAP SE's current Gross Margin % of 72.98% is near median its 10-year median of 71.69. Over the past 10 years, this metric has ranged from a low of 69.68 to a high of 73.22. The Software industry median Gross Margin % is 40.45. SAP SE's value of 72.98% is 80.4% above this industry median. Based on the distribution chart, SAP SE ranks #474 out of 2683 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, SAP SE has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does SAP SE's Gross Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, SAP SE ranks #474 out of 2683 companies for Gross Margin %. This places SAP SE in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. SAP SE's value of 72.98% is 80.4% above this benchmark. Historically, SAP SE's own Gross Margin % has ranged from 69.68 to 73.22 over the past decade. While the company's 10-year median is 71.69 vs. the industry median of 40.45, SAP SE has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,683 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SAP SE's current Gross Margin % of 72.98% is 80.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on SAP SE and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SAP SE's current Gross Margin % is 72.98%, which is near median its own 10-year median of 71.69. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SAP SE stock overvalued right now?
SAP SE (MEX:SAP1N) has a current Gross Margin % of 72.98%. The stock's GF Value™ is MXN5,652.94, compared to a current price of MXN3,479.17 — trading 38.5% below its estimated fair value. The current Gross Margin % is 72.98%, which is near median its 10-year median of 71.69 and 80.4% above the Software industry median of 40.45. SAP SE's overall GF Score™ is 74/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For SAP SE (MEX:SAP1N), the current Gross Margin % is 72.98% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is SAP SE (MEX:SAP1N) Overvalued in 2026?
Based on GuruFocus' analysis, SAP SE stock appears to be undervalued.
The current stock price of MXN3,479.17 is trading 38.5% below its estimated GF Value™ of MXN5,652.94.
Key valuation signals for MEX:SAP1N:
Gross Margin %: 72.98% (near median its 10-year median of 71.69)
GF Value™: MXN5,652.94 vs. price of MXN3,479.17 (38.5% below fair value)
Industry Position: 80.4% above the Software median (#474 of 2683)
No single metric tells the full story. See the MEX:SAP1N stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Founded in Germany in 1972 by former IBM employees, SAP is the world's largest provider of enterprise application software. Known as the leader in enterprise resource planning software, SAP's portfolio also includes software for supply chain management, procurement, travel and expense management, and customer relationship management, among others. The company operates in more than 180 countries and has more than 400,000 customers, approximately 80% of which are small to medium-size enterprises.
74GF Score
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