SAP (SAP, $152.27) preliminary results beat expectations
SAP's preliminary report revealed Q2 results that were higher than analysts’ expectations.
In the preliminary report (that comes ahead of a full Q2 report due on July 27), SAP states that the software company’s Q2 revenue rose +2% annually on a non-IFRS basis to €6.74 billion($7.62 billion). That is above FactSet consensus estimate of €6.69 billion ($7.56 billion)
However, the figure is slower than Q1’s 7% growth.
On the other hand, SAP’s competitor Oracle experienced a -6% drop in revenue during its May quarter, and provided guidance (during its June 16 earnings call) for August quarter revenue growth in the range of -1% to up +1%, with a 1% currency headwind.
[ORCL & SAP] are closely correlated.
Both companies represent the Packaged Software industry
Market capitalization -- SAP: $175.4B vs. ORCL: $173.9B
Current volume relative to the 65-day Moving Average: SAP: 56% vs. ORCL: 94%
Long term analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
SAP’s FA Score shows that 3 FA rating(s) are green while ORCL’s FA Score has 2’s green FA rating(s).
- SAP’s FA Score: 3 green, 2 red.
- ORCL’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators.
SAP’s TA Score shows that 4 TA rating(s) are bullish while ORCL’s TA Score has 6’s bullish TA rating(s).
- SAP’s TA Score: 4 bullish, 3 bearish.
- ORCL’s TA Score: 6 bullish, 1 bearish.
SAP vs ORCL: Fundamental Ratings:
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
ORCL's Valuation (8) in the Packaged Software industry is in the same range as SAP (10). This means that ORCL’s stock grew similarly to SAP’s over the last 12 months.
SAP's Profit vs Risk Rating (13) in the Packaged Software industry is in the same range as ORCL (44). This means that SAP’s stock grew similarly to ORCL’s over the last 12 months.
ORCL's SMR Rating (9) in the Packaged Software industry is in the same range as SAP (32). This means that ORCL’s stock grew similarly to SAP’s over the last 12 months.
SAP's Price Growth Rating (43) in the Packaged Software industry is in the same range as ORCL (47). This means that SAP’s stock grew similarly to ORCL’s over the last 12 months.
SAP's P/E Growth Rating (40) in the Packaged Software industry is in the same range as ORCL (55). This means that SAP’s stock grew similarly to ORCL’s over the last 12 months.
SAP ($175B) and ORCL ($174B) have the same market capitalization. SAP has higher P/E ratio than ORCL: 11.276 vs 7.932. SAP YTD gains are higher at: 11.276 vs. ORCL (7.932). ORCL has higher annual earnings (EBITDA): 17.2B vs. SAP (8.911B). ORCL has more cash in the bank: 37.2B vs. SAP (8.576B). SAP has less debt than ORCL: 19.4B vs 73.7B. ORCL has higher revenues than SAP: 39.1B vs 31.1B.
SAP sees MACD Histogram just turned negative
SAP saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on September 11, 2025. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 49 instances where the indicator turned negative. In of the 49 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 10, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on SAP as a result. In of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SAP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for SAP entered a downward trend on September 16, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an Uptrend is expected.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 3 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SAP advanced for three days, in of 319 cases, the price rose further within the following month. The odds of a continued upward trend are .
SAP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.313) is normal, around the industry mean (13.138). P/E Ratio (39.971) is within average values for comparable stocks, (120.551). Projected Growth (PEG Ratio) (1.120) is also within normal values, averaging (2.056). Dividend Yield (0.010) settles around the average of (0.026) among similar stocks. P/S Ratio (7.299) is also within normal values, averaging (63.844).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 90, placing this stock slightly better than average.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. SAP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a provider of e-business software solutions
Industry PackagedSoftware
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