SAP SE or Cisco Systems, Inc.: Who Manages SG&A Costs Better?

SAP SE vs. Cisco Systems, Inc.: A Decade of SG&A Management

In the ever-evolving tech industry, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, Cisco Systems, Inc. and SAP SE have demonstrated contrasting approaches to SG&A cost management. From 2014 to 2023, Cisco consistently maintained higher SG&A expenses, peaking at approximately $13.2 billion in 2024, reflecting a 15% increase from 2014. In contrast, SAP SE's SG&A expenses grew more dynamically, nearly doubling from 2014 to 2022, before a slight dip in 2023. This suggests SAP's aggressive expansion strategy, while Cisco's steady increase indicates a focus on operational stability. Notably, SAP's data for 2024 is missing, leaving room for speculation on their strategic adjustments. As these tech giants navigate the competitive landscape, their SG&A management strategies offer valuable insights into their broader business objectives.