$SAP · SAP SE
SAP SE reported Q3 2026 results with total revenue of €10.27B (+13% YoY), crossing €10B quarterly for the first time. Cloud revenue grew 26% to €6.67B, driven by Cloud ERP Suite growth of 29%. Current cloud backlog reached €24.1B, up 28% YoY. Non-IFRS operating profit rose 18% to €3.03B, and free cash flow jumped 36% to €1.72B. SAP raised its 2026 cloud revenue and cloud and software revenue outlook to the upper end of prior ranges.
- Current cloud backlog hit €24.1B, up 28% YoY (26% constant currency)
- Cloud revenue reached €6.67B in Q3, up 26% YoY, with Cloud ERP Suite up 29%
- Total quarterly revenue crossed €10B for the first time (€10.27B, +13% YoY)
- Non-IFRS operating profit hit €3.03B, up 18% YoY; free cash flow surged 36% to €1.72B
- SAP raised 2026 cloud revenue guidance to the upper end of €25.8–26.2B at constant currencies
Extended-hours trading shows SAP at $239.78, up 0.69% from the regular close, indicating mild positive reception. The raised guidance and €10B revenue milestone are being absorbed cautiously given the stock's $277B market cap.
SAP's €10B revenue milestone and raised guidance confirm the cloud transition is scaling profitably, with €24.1B backlog providing rare multi-year visibility for a $277B enterprise software giant.
SAP's 26% cloud growth and raised outlook reinforce its leadership in enterprise cloud ERP migration, outpacing legacy peers. The €24.1B current cloud backlog provides multi-year visibility that few enterprise software rivals can match.
Cloud gross margin declined 0.7pp to 73.9% (IFRS) as infrastructure costs rise. Software support revenue continues structural decline (–5% YoY) as customers migrate to cloud, with the company warning this decline rate will accelerate.