SAP SECHIX:SAPD 76 Net Margin % is 20.22% as of Mar. 2026, which is 20% above its 10-year median of 16.81. GuruFocus rates CHIX:SAPD with a GF Score™ of 76/100 and a GF Value™ of €215.91 (Significantly Undervalued). Among 2,825 Software companies, SAP SE ranks better than 89.7% on this metric.
Net margin is calculated as Net Income divided by its Revenue. SAP SE's Net Income for the
three
months ended in Mar. 2026 was €1,932 Mil. SAP SE's Revenue for the
three
months ended in Mar. 2026 was €9,555 Mil. Therefore, SAP SE's net margin for the quarter that ended in Mar. 2026 was 20.22%.
The historical rank and industry rank for SAP SE's Net Margin % or its related term are showing as below:
CHIX:SAPd'
s Net Margin % Range Over the Past 10 Years
Min: 7.74 Med: 16.81 Max: 19.67
Current: 19.58
CHIX:SAPd's Net Margin % is ranked better than 89.7% of 2825
companies
in the Software industry
Industry Median: 2.54
vs CHIX:SAPd: 19.58
SAP SE (CHIX:SAPd) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
SAP SE Net Margin % Related Terms
SAP SE Net Margin % Historical Data
* Premium members only.
The historical data trend for SAP SE's Net 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.
CHIX:SAPD vs CRM, SHOP, UBER: Net Margin % Comparison
For the Software - Application subindustry, SAP SE's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Software Industry
For the Software industry and Technology sector, SAP SE's Net Margin % distribution charts can be found below:
* The bar in red indicates where SAP SE's Net 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.
SAP SE (CHIX:SAPD) has a Net Margin % of 20.22% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on SAP SE and its competitors. This is 20% above median its historical median of 16.81. Over the past decade, SAP SE's Net Margin % has ranged from 7.74 to 19.67. According to the industry distribution chart, SAP SE ranks #291 out of 2825 companies in the Software industry, placing it in the top 10.3%.
Is SAP SE's Net Margin % too high?
SAP SE's current Net Margin % of 20.22% is 20% above median its 10-year median of 16.81. Over the past 10 years, this metric has ranged from a low of 7.74 to a high of 19.67. The Software industry median Net Margin % is 2.54. SAP SE's value of 20.22% is 696.1% above this industry median. Based on the distribution chart, SAP SE ranks #291 out of 2825 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 76/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SAP SE's Net Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, SAP SE ranks #291 out of 2825 companies for Net Margin %. This places SAP SE in the top 10% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.54. SAP SE's value of 20.22% is 696.1% above this benchmark. Historically, SAP SE's own Net Margin % has ranged from 7.74 to 19.67 over the past decade. While the company's 10-year median is 16.81 vs. the industry median of 2.54, 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 Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,825 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SAP SE's current Net Margin % of 20.22% is 696.1% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on SAP SE and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SAP SE's current Net Margin % is 20.22%, which is 20% above median its own 10-year median of 16.81. 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?
Based on GuruFocus' analysis, SAP SE (CHIX:SAPD) is currently considered Significantly Undervalued. The stock's GF Value™ is €215.91, compared to a current price of €132.55 — trading 38.6% below its estimated fair value. The current Net Margin % is 20.22%, which is 20% above median its 10-year median of 16.81 and 696.1% above the Software industry median of 2.54. SAP SE's overall GF Score™ is 76/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For SAP SE (CHIX:SAPD), the current Net Margin % is 20.22% 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 (CHIX:SAPD) Overvalued in 2026?
Based on GuruFocus' analysis, SAP SE stock appears to be undervalued.
The current stock price of €132.55 is trading 38.6% below its estimated GF Value™ of €215.91.
GuruFocus considers SAP SE to be Significantly Undervalued.
Key valuation signals for CHIX:SAPD:
Net Margin %: 20.22% (20% above median its 10-year median of 16.81)
GF Value™: €215.91 vs. price of €132.55 (38.6% below fair value)
Industry Position: 696.1% above the Software median (#291 of 2825)
No single metric tells the full story. See the CHIX:SAPD 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.
76GF Score
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