SGPYY (Sage Group (The)) Operating Income: $762 Mil (TTM As of Mar. 2026)

What is Sage Group (The) Operating Income?

Sage Group (The) SGPYY -0.04% 79 Operating Income is $762 Mil as of Mar. 2026. GuruFocus rates SGPYY with a GF Score™ of 79/100 and a GF Value™ of $72.81 (Significantly Undervalued). The stock has 4 warning signs investors should review.

Sage Group (The)'s Operating Income for the six months ended in Mar. 2026 was $391 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was $762 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Sage Group (The)'s Operating Income for the six months ended in Mar. 2026 was $391 Mil. Sage Group (The)'s Revenue for the six months ended in Mar. 2026 was $1,817 Mil. Therefore, Sage Group (The)'s Operating Margin % for the quarter that ended in Mar. 2026 was 21.50%.

Good Sign:

Sage Group (The) PLC operating margin is expanding. Margin expansion is usually a good sign.

Sage Group (The)'s 5-Year average Growth Rate for Operating Margin % was 1.20% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Sage Group (The)'s annualized ROC % for the quarter that ended in Mar. 2026 was 10.94%. Sage Group (The)'s annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 384.53%.

Sage Group (The) (OTCPK:SGPYY) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Sage Group (The)'s annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

	ROC % (Q: Mar. 2026 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2025 )	+	Invested Capital (Q: Mar. 2026 ))	/ count )
=	781.334 * ( 1 - 25.19% )	/	( (5444.595	+	5237.334)	/ 2 )
=	584.5159654	/	5340.9645
=	10.94 %

where

	Invested Capital		(Q: Sep. 2025 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	5017.568	-	237.838	-	( 527.027	-	max(0, 1831.081	-	1166.216	+	527.027	))
=	5444.595

	Invested Capital		(Q: Mar. 2026 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	5316	-	924	-	( 690.667	-	max(0, 2250.667	-	1405.333	+	690.667	))
=	5237.334

Note: The Operating Income data used here is two times the semi-annual (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Sage Group (The)'s annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Mar. 2026 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2025		Q: Mar. 2026
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	792	/	( ( (194.595 + max(-1205.405, 0))	+	(217.333 + max(-1516.001, 0)) )	/	2 )
=	792	/	( ( 194.595	+	217.333 )	/	2 )
=	792	/	205.964
=	384.53 %

where Working Capital is:

	Working Capital		(Q: Sep. 2025 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(483.784	+	0	+	118.919)	-	(237.838	+	0	+	1570.27)
=	-1205.405

	Working Capital		(Q: Mar. 2026 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(693.333	+	0	+	21.333)	-	(924	+	0	+	1306.667)
=	-1516.001

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Sage Group (The)'s Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %	=	Operating Income (Q: Mar. 2026 )	/	Revenue (Q: Mar. 2026 )
	=	390.667	/	1817.333
	=	21.50 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Sage Group (The) Operating Income Related Terms

Sage Group (The) Operating Income Historical Data

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The historical data trend for Sage Group (The)'s Operating Income can be seen below:

Sage Group (The) Operating Income Chart

Sage Group (The) Annual Data

Trend

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Sep24

Sep25

Operating Income

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449.18

377.12

389.85

597.88

716.22

Sage Group (The) Semi-Annual Data
	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24	Mar25	Sep25	Mar26
Operating Income	Get a 7-Day Free Trial															273.19	313.49	329.46	371.62	390.67

79GF Score

Sage Group (The) PLC SGPYY

Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.

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Sage Group (The) Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was $762 Mil.

Frequently Asked Questions Learn more about Operating Income →

What does a Operating Income of $762 Mil mean?

Sage Group (The) (SGPYY) has a Operating Income of $762 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Sage Group (The) and its competitors.

Is Sage Group (The)'s Operating Income too high?

Sage Group (The)'s current Operating Income is $762 Mil. Overall, Sage Group (The) has a GF Score™ of 79/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.

How does Sage Group (The)'s Operating Income compare to UBER and SHOP?

Sage Group (The)'s Operating Income of $762 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good Operating Income for a Software company?

A good Operating Income depends on the Software industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.

What does a high Operating Income mean?

A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Sage Group (The) and its competitors. Sage Group (The)'s current Operating Income is $762 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.

Is Sage Group (The) stock overvalued right now?

Based on GuruFocus' analysis, Sage Group (The) (SGPYY) is currently considered Significantly Undervalued. The stock's GF Value™ is $72.81, compared to a current price of $44.45 — trading 38.9% below its estimated fair value. The current Operating Income is $762 Mil. Sage Group (The)'s overall GF Score™ is 79/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Operating Income calculated?

Operating Income is calculated from a company's financial statements. For Sage Group (The) (SGPYY), the current Operating Income is $762 Mil 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 Sage Group (The) (SGPYY) Overvalued in 2026?

Based on GuruFocus' analysis, Sage Group (The) stock appears to be undervalued. The current stock price of $44.45 is trading 38.9% below its estimated GF Value™ of $72.81. GuruFocus considers Sage Group (The) to be Significantly Undervalued.

Key valuation signals for SGPYY:

Operating Income: $762 Mil
GF Value™: $72.81 vs. price of $44.45 (38.9% below fair value)
GF Score™: 79/100 with 4 warning signs

No single metric tells the full story. See the SGPYY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Sage Group (The) Business Description

Industry Technology Software

Comparable Companies LSE:TRST LSE:KNOS LSE:ATG LSE:ALFA LSE:GBG LSE:CER LSE:PINE LSE:BIG LSE:NET LSE:AOM XTER:SAP UBER SHOP CRM CDNS NOW ADP SNOW DDOG ADBE

Other Exchanges SGGEF:USA SGEl:UK SGE:UK SGK1:Germany

Address C23 - 5 & 6 Cobalt Park Way, Cobalt Park, Newcastle upon Tyne, GBR, NE28 9EJ

Website https://www.sage.com

The Sage Group is a UK-based provider of accounting and enterprise resource planning software, predominantly to customers in the US and Europe. The company was founded in 1981 and historically sold on-premises software products with perpetual software licenses. However, the company is transitioning toward cloud-connected and cloud native products, sold via software-as-a-service contracts. Sage's main cloud-native products include Sage Accounting, for small businesses, and Sage Intacct, which Sage acquired in 2017, for midsize businesses.

79GF Score

Get the complete analysis for SGPYY

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$44.45

Price

$72.81

GF Value

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