Germany's SAP hits €10 billion quarterly revenue milestone, lifts 2026 view

Oct 21 — Europe's largest tech company SAP achieved a €10 billion ($11.2 billion) quarterly ​revenue milestone for the first time on Wednesday, while reporting a 26% rise in current cloud backlog and moving its 2026 ‌revenue expectations to the upper end of its outlook range.

Cloud revenue rose 26% to €6.67 billion ⁠in the third quarter while non-IFRS ​operating profit rose 18% to €3.03 ⁠billion. SAP's cloud backlog at constant currencies grew 26% to €24.14 billion ($27.11 ‌billion), ahead of the ‌24% to 25% growth UBS had forecast.

SAP's order book is ⁠watched as a gauge of enterprise ⁠tech spending worldwide as its software suite runs accounting and payroll at many of the world's biggest companies. SAP held its operating profit outlook at €11.8 billion to €12.2 billion at constant currencies, a range trimmed in July for its recent acquisitions.

A miss on the ‌measure in January sent the shares down 15% ​in one day.

SAP said growth in cloud revenue was helped by customers returning from "financial distress." Its profit margin widened to 29.5% from 28.3% while free cash flow rose 36% to €1.72 billion.

SAP now expects 2026 subscription revenue — access to software customers rent remotely rather than buy and run themselves — toward the top of its €25.8 billion ​to €26.2 billion forecast, up 23% to 25%. Including the declining classic licence business, ‌it sees revenue ‌of €36.3 ⁠billion to €36.8 billion, up 12% to 13%, at the top of its range. SAP kept its yearly operating profit outlook of €11.8 billion to €12.2 billion at constant currencies.

CEO Christian Klein called it "an outstanding quarter." Customers are "investing ‌in the technology behind" the ​company's AI strategy, he said. New ‌cloud customers included AstraZeneca, ⁠Infineon and ​Henkel.

($1 = 0.8903 euros)

(Reporting by Leo Marchandon in Gdansk; Editing by Daniel Wallis and ​Rod Nickel)

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