SAP SE
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SAP SE’s revenue for fiscal 2025 (year ended December 2025) was $41.6 billion, up 12.6% from fiscal 2024. In the quarter to June 2026, revenue grew 12.1%, EPS grew 33.3%, free cash flow grew 15.7% and total debt rose 14.7%, each against the same quarter a year earlier. Dividend growth for three consecutive years, revenue growth for three.
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SAP SE (SAP) Altman Z-score
SAP SE's Altman Z-score for fiscal 2025 is 7.90, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 7.90 | 0.77 |
| FY2024 | 7.14 | 1.42 |
| FY2023 | 5.72 | 2.01 |
| FY2022 | 3.71 | (0.52) |
| FY2021 | 4.23 | (0.26) |
| FY2020 | 4.49 | 0.19 |
| FY2019 | 4.30 | (0.10) |
| FY2018 | 4.40 | (1.35) |
| FY2017 | 5.75 | 0.82 |
| FY2016 | 4.93 | 0.53 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.04 | — | 0.05 | |
| Retained earnings / total assets | 0.67 | — | 0.94 | |
| EBIT / total assets | 0.14 | — | 0.45 | |
| Market value of equity / total liabilities | 9.90 | — | 5.94 | |
| Sales / total assets | 0.52 | — | 0.52 | |
| Altman Z-score | Safe zone | 7.90 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 5.25 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| SHOP Shopify Inc. compare | 75.0× |
| DDOG Datadog, Inc. compare | 10.9× |
| ADBE Adobe Inc. compare | 8.5× |
| NOW ServiceNow, Inc. compare | 8.3× |
| SAP SAP SE | 7.9× |
| SNOW Snowflake Inc. compare | 4.1× |
| UBER Uber Technologies, Inc. compare | 3.9× |
| CRM Salesforce, Inc. compare | 3.1× |
| ADP Automatic Data Processing, Inc. compare | 2.2× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets