--- title: "ERP Software Industry: Companies, KPIs" description: "140 SEC filers are classified under the Standard Industrial Classification code that describes the erp software industry." canonical: https://www.getswoopr.com/stocks/industries/information-technology/erp-software/ source: "Swoopr Investment: https://www.getswoopr.com" --- # ERP Software Industry ## Direct Answer 140 SEC filers are classified under the Standard Industrial Classification code that describes the erp software industry, and their latest annual reports show $630.2 billion of combined revenue and a median operating margin of -5.5%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics. ## Industry Overview ERP software companies sell the core system of record that runs finance, supply chain, manufacturing and human resources. Implementations are long and costly, so customers rarely switch and cloud migrations drive growth. The first numbers to compare across companies here are cloud and recurring revenue, remaining performance obligations and net retention. ## Key Industry Metrics - **Cloud and recurring revenue**: Subscription and support revenue from cloud systems that repeats. It shows how far customers have moved from on-premises licenses, which typically lifts predictability. - **Remaining performance obligations**: Contracted revenue not yet recognized. For ERP it shows long commitments, and large migrations give multi-year visibility, though timing of recognition depends on go-live. - **Net retention**: Spending from existing customers versus a year earlier. Above 100% shows customers adding modules and users, and ERP switching costs make declines uncommon but meaningful. - **Operating margin**: Profit after operating costs as a share of revenue. Large installed bases and support revenue provide scale, while cloud migration costs can weigh on margin. - **Implementation backlog**: Contracted implementation work waiting to be delivered. It shows near-term services revenue and pipeline, and slow implementations can delay the move to full subscription revenue. ## Primary Macro Drivers - **Cloud migration of legacy ERP**: Customers moving older on-premises systems to cloud versions drive cloud and recurring revenue, with backlog showing the pipeline. - **Digital transformation budgets**: Firms rebuilding processes around central systems spend more, supporting deal size and implementation backlog. - **AI features**: Embedded automation and analytics add premium features that raise revenue per customer and support net retention. - **Industry-specific modules**: Modules built for particular sectors address specific rules and processes, lifting win rates and customer stickiness. ## Major Risks - **Long, costly implementations**: Projects take long and can overrun budget, causing delays in revenue and customer frustration; watch implementation backlog and customer satisfaction. - **Competition among a few vendors**: A few vendors compete for the same large accounts, so a lost bid carries big revenue effects; watch remaining performance obligations and win-rate commentary. - **Customer budget cycles**: Large customers tie purchases to annual budgets, so deals slip when spending tightens; watch bookings and remaining performance obligations. - **Migration deadlines**: Vendor deadlines to end support for older versions force moves that may be delayed or lost to rivals; watch cloud migration rates and backlog. ## Industry Characteristics | Characteristic | Profile | | --- | --- | | Cyclicality | Mixed | | Capital Intensity | Low | | Regulatory Intensity | Low | | Industry Maturity | Mature | | Geographic Importance | U.S. / Global | ## ERP Software Filers in the SEC Record 140 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 7372. Their latest fiscal years end between 2024 and 2026, and together they reported $630.2 billion of revenue. Median revenue growth over the prior year was 13.5%. Median operating margin was -5.5% and median net margin -2.3%. Median total liabilities were 44% of total assets, and 65 of 140 reported a profit in their latest year. | Company | Revenue | Growth | Operating margin | Net margin | Year | | --- | --- | --- | --- | --- | --- | | [Microsoft Corp](https://www.getswoopr.com/stocks/companies/microsoft/) | $281.7 billion | 14.9% | 45.6% | 36.1% | FY 2025 | | [Oracle Corp](https://www.getswoopr.com/stocks/companies/oracle-corporation/) | $67.4 billion | 17.3% | 30.6% | 25.2% | FY 2026 | | [Salesforce, Inc.](https://www.getswoopr.com/stocks/companies/salesforce/) | $41.5 billion | 9.6% | 20.1% | 18.0% | FY 2026 | | [Block, Inc.](https://www.getswoopr.com/stocks/companies/block-inc/) | $24.2 billion | 0.3% | 7.1% | 5.4% | FY 2025 | | [Adobe Inc.](https://www.getswoopr.com/stocks/companies/adobe/) | $23.8 billion | 10.5% | 36.6% | 30.0% | FY 2025 | | [Intuit Inc.](https://www.getswoopr.com/stocks/companies/intuit/) | $18.8 billion | 15.6% | 26.1% | 20.5% | FY 2025 | | [Servicenow, Inc.](https://www.getswoopr.com/stocks/companies/servicenow/) | $13.3 billion | 20.9% | 13.7% | 13.2% | FY 2025 | | [Shopify Inc.](https://www.getswoopr.com/stocks/companies/shopify/) | $11.6 billion | 30.1% | 12.7% | 10.7% | FY 2025 | The 8 largest of 140 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code. ## Where to Go Next The ERP Software guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company. ### More in Information Technology - [Information Technology sector overview](https://www.getswoopr.com/stocks/industries/information-technology/) - [Etch Equipment](https://www.getswoopr.com/stocks/industries/information-technology/etch-equipment/) - [Enterprise Storage](https://www.getswoopr.com/stocks/industries/information-technology/enterprise-storage/) - [Fabless Semiconductors](https://www.getswoopr.com/stocks/industries/information-technology/fabless-semiconductors/) - [Enterprise Software](https://www.getswoopr.com/stocks/industries/information-technology/enterprise-software/) - [Financial Software](https://www.getswoopr.com/stocks/industries/information-technology/financial-software/) - [Enterprise Servers](https://www.getswoopr.com/stocks/industries/information-technology/enterprise-servers/) - [Foundation Model Developers](https://www.getswoopr.com/stocks/industries/information-technology/foundation-model-developers/) - [Enterprise Data Services](https://www.getswoopr.com/stocks/industries/information-technology/enterprise-data-services/) ### Put it to work - [How to analyze a stock](https://www.getswoopr.com/stocks/how-to-analyze-a-stock/) - [Fundamental analysis guides](https://www.getswoopr.com/learn/fundamental-analysis/) - [Company research](https://www.getswoopr.com/stocks/companies/) - [All industries](https://www.getswoopr.com/stocks/industries/) ## Frequently Asked Questions What are the main KPIs for the ERP Software industry? Key performance indicators for the ERP Software industry include: Cloud and recurring revenue, Remaining performance obligations, Net retention, Operating margin, Implementation backlog. Which matter most depends on the company's model, so compare them across several companies rather than relying on one. How cyclical is the ERP Software industry? The ERP Software industry exhibits mixed cyclicality characteristics. Some segments move with the broader economy while others maintain more stable demand, making stock selection within the group particularly important. What are the biggest risks in the ERP Software industry? The primary risks for ERP Software companies include: Long, costly implementations; Competition among a few vendors; Customer budget cycles; Migration deadlines. Investors should assess each company's exposure to these factors and its track record of navigating them. **[Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/)** Swoopr's editorial team produces independent investment education content reviewed for accuracy and clarity. We do not provide personalized financial advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).