SAP SEFRA:SAP -0.21%74 Operating Margin % is 28.80% as of Mar. 2026, which is 25% above its 10-year median of 23.01. GuruFocus rates FRA:SAP with a GF Score™ of 74/100 and a GF Value™ of €218.96 (Significantly Undervalued). Among 2,818 Software companies, SAP SE ranks better than 93.44% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. SAP SE's Operating Income for the
three
months ended in Mar. 2026 was €2,752 Mil. SAP SE's Revenue for the
three
months ended in Mar. 2026 was €9,555 Mil. Therefore, SAP SE's Operating Margin % for the quarter that ended in Mar. 2026 was 28.80%.
Good Sign:
SAP SE operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for SAP SE's Operating Margin % or its related term are showing as below:
FRA:SAP'
s Operating Margin % Range Over the Past 10 Years
Min: 19.27 Med: 23.01 Max: 26.88
Current: 26.88
FRA:SAP's Operating Margin % is ranked better than 93.44% of 2818
companies
in the Software industry
Industry Median: 3.865
vs FRA:SAP: 26.88
SAP SE's 5-Year Average Operating Margin % Growth Rate was 0.50% per year.
SAP SE's Operating Income for the
three
months ended in Mar. 2026 was €2,752 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €10,039 Mil.
SAP SE (FRA:SAP) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
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 Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) 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.
SAP SE Operating Margin % Related Terms
SAP SE Operating Margin % Historical Data
* Premium members only.
The historical data trend for SAP SE's Operating 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.
FRA:SAP vs CRM, SHOP, UBER: Operating Margin % Comparison
For the Software - Application subindustry, SAP SE's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Software Industry
For the Software industry and Technology sector, SAP SE's Operating Margin % distribution charts can be found below:
* The bar in red indicates where SAP SE's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
SAP SE's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (FRA:SAP) has a Operating Margin % of 28.80% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on SAP SE and its competitors. This is 25% above median its historical median of 23.01. Over the past decade, SAP SE's Operating Margin % has ranged from 19.27 to 26.88. According to the industry distribution chart, SAP SE ranks #185 out of 2818 companies in the Software industry, placing it in the top 6.6%.
Is SAP SE's Operating Margin % too high?
SAP SE's current Operating Margin % of 28.80% is 25% above median its 10-year median of 23.01. Over the past 10 years, this metric has ranged from a low of 19.27 to a high of 26.88. The Software industry median Operating Margin % is 3.87. SAP SE's value of 28.80% is 645.1% above this industry median. Based on the distribution chart, SAP SE ranks #185 out of 2818 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 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does SAP SE's Operating Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, SAP SE ranks #185 out of 2818 companies for Operating Margin %. This places SAP SE in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.87. SAP SE's value of 28.80% is 645.1% above this benchmark. Historically, SAP SE's own Operating Margin % has ranged from 19.27 to 26.88 over the past decade. While the company's 10-year median is 23.01 vs. the industry median of 3.87, 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 Operating Margin % for a Software company?
The median Operating Margin % among Software companies is 3.87, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SAP SE's current Operating Margin % of 28.80% is 645.1% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on SAP SE and its competitors. For the Software industry, the median Operating Margin % is 3.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SAP SE's current Operating Margin % is 28.80%, which is 25% above median its own 10-year median of 23.01. 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 (FRA:SAP) is currently considered Significantly Undervalued. The stock's GF Value™ is €218.96, compared to a current price of €134.76 — trading 38.5% below its estimated fair value. The current Operating Margin % is 28.80%, which is 25% above median its 10-year median of 23.01 and 645.1% above the Software industry median of 3.87. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For SAP SE (FRA:SAP), the current Operating Margin % is 28.80% 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 (FRA:SAP) Overvalued in 2026?
Based on GuruFocus' analysis, SAP SE stock appears to be undervalued.
The current stock price of €134.76 is trading 38.5% below its estimated GF Value™ of €218.96.
GuruFocus considers SAP SE to be Significantly Undervalued.
Key valuation signals for FRA:SAP:
Operating Margin %: 28.80% (25% above median its 10-year median of 23.01)
GF Value™: €218.96 vs. price of €134.76 (38.5% below fair value)
Industry Position: 645.1% above the Software median (#185 of 2818)
No single metric tells the full story. See the FRA:SAP 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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