SAPNEUTRAL

Gross Margin

73.0%

Higher than 67% of Technology sector peers

Updated 8h ago

Sector Performance

67th percentile

SAP

73.0%

Sector Median

65.2%

Sector Avg

60.4%

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Deep Analysis

SAP's current Gross Margin of 73.0% means that for every dollar of revenue, the company keeps 73 cents after subtracting the direct costs of producing its software and services.

This is above the sector median of 65.3%, placing SAP in the 66th percentile among its technology peers, meaning it is more profitable on a per-sale basis than most comparable companies. The trend direction is not available because the year-over-year change is listed as N/A and the quarter-over-quarter change is also N/A, so there is no historical data to assess improvement or deterioration. The combination of a high margin level with no trend data limits the ability to judge momentum; the strong current profitability suggests a low risk of margin compression relative to peers, but without a trend, it is unclear whether this performance is stable or eroding. This metric supports the overall NEUTRAL verdict because while the margin is above average, the lack of trend information prevents a bullish or bearish conclusion, and the verdict already reflects a balanced view.

Frequently Asked Questions

What does the Gross Margin tell investors about SAP?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does SAP's Gross Margin compare to its sector?

SAP's Gross Margin of 73.0% compares to a Technology sector median of 65.2%, placing it in the 67th percentile.

Who are SAP's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: ORCL (65.2%), MDB (72.2%), LIF (77.3%), OKTA (77.8%), POWI (52.6%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.