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SAP tops Q3 cloud revenue estimates and lifts full-year outlook

SAP posted third-quarter revenue and adjusted earnings that beat Wall Street expectations, bolstered by resilient cloud demand and a growing order backlog.

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Image: @wallstengine

SAP SE delivered third-quarter revenue of €10,270 million, up 13% year-over-year and surpassing analyst projections of €10.13 billion. In constant currencies, total revenue grew 12%, while cloud revenue jumped 25% year-over-year to €6.67 billion, ahead of the €6.57 billion consensus. According to Bloomberg, the stronger-than-expected cloud expansion indicates that enterprise demand for the German software giant's products has remained robust despite the surge in artificial intelligence investments.[1][3][4][5]

The company's current cloud backlog expanded 28% year-over-year (26% in constant currencies) to reach €24.1 billion. Growth was anchored by the Cloud ERP Suite, where revenue increased 29% to €5,924 million. For the quarter, adjusted earnings per share reached €1.89, up 19% year-over-year and beating estimates of €1.87. Non-IFRS operating margin rose 1.2 percentage points to 29.5%, and free cash flow surged 36% to €1,718 million.[1][3][4]

Looking ahead, SAP indicated that fiscal 2026 constant-currency cloud revenue (€25.8 billion to €26.2 billion) and cloud and software revenue (€36.3 billion to €36.8 billion) are tracking toward the upper ends of their guidance ranges. The company also announced an agreement to acquire TechWolf and noted it has completed approximately €4.2 billion in share repurchases under its current buyback program.[1][2]

Key facts

  • SAP reported Q3 2026 revenue of €10,270 million, up 13% year-over-year and above analyst estimates of €10.13 billion.
  • Q3 cloud revenue rose 25% in constant currencies to €6.67 billion, topping the €6.57 billion consensus estimate.
  • Current cloud backlog increased 28% year-over-year (26% in constant currencies) to €24.1 billion.
  • Cloud ERP Suite revenue reached €5,924 million, marking a 29% increase year-over-year.
  • Adjusted EPS rose 19% year-over-year to €1.89, beating the €1.87 estimate.
  • Free cash flow rose 36% year-over-year to €1,718 million, while non-IFRS operating margin improved by 1.2 percentage points to 29.5%.
  • SAP expects full-year 2026 constant-currency cloud revenue to trend toward the upper end of its €25.8 billion to €26.2 billion guidance range.
  • SAP entered into an agreement to acquire TechWolf and has bought back about €4.2 billion in shares under its repurchase program.

Sources · 5 sources

  1. WS

    Wall St Engine@wallstenginePost on X ·

    $SAP Q3’26 EARNINGS HIGHLIGHTS 🔹 Revenue: €10,270M (Est. €10.13B) 🟢; +13% YoY 🔹 Adj. EPS: €1.89 (Est. €1.87) 🟢; +19% YoY 🔹 Current Cloud Backlog: €24.1B; +28%, +26% cc FY26 Guide: 🔹 Cloud Revenue (cc): €25.8B-€26.2B; upper end 🔹 Cloud & Software Rev (cc): €36.3B-€36.8B; upper end 🔹 Non-IFRS Oper Profit (cc): €11.8B-€12.2B 🔹 Free Cash Flow: ~€10B 🔹 Non-IFRS Tax Rate: ~29% Q3 Revenue Mix: 🔹 Cloud ERP Suite: €5,924M; +29% YoY 🔹 Cloud & Software: €9,249M; +15% YoY 🔹 Software Support: €2,434M; -5% YoY 🔹 Software Licenses: €147M; -9% YoY 🔹 Services: €1,021M; -4% YoY Other Q3 Metrics: 🔹 Non-IFRS Oper Margin: 29.5%; +1.2pp YoY 🔹 Non-IFRS Cloud Gross Margin: 74.3%; -0.8pp YoY 🔹 IFRS EPS: €1.96; +14% YoY 🔹 Free Cash Flow: €1,718M; +36% YoY Capital Return: 🔹 Share Repurchases: ~€4.2B under the program Key Updates: 🔹 Outlook: Cloud revenue and cloud & software revenue are expected toward the upper end of their ranges 🔹 Acquisition: SAP entered into an agreement to acquire TechWolf

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  2. TS

    The Straits Times@straits_timesPost on X ·

    Germany’s SAP hits $14.3 billion quarterly revenue milestone, lifts 2026 view https://t.co/5T4hKZriLl

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  3. TE

    Techmeme@TechmemePost on X ·

    SAP: Q3 cloud revenue up 25% YoY to €6.67B, vs. €6.57B est., total revenue up 12% to €10.27B, current cloud backlog up 26% to €24.1B, all in constant currencies (@ckyrious / Bloomberg) (Visit Techmeme dot com for the link and full context!)

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  4. TE

    TechmemeArticle ·

    SAP: Q3 cloud revenue up 25% YoY to €6.67B, vs. €6.57B est., total revenue up 12% to €10.27B, current cloud backlog up 26% to €24.1B, all in constant currencies (Christina Kyriasoglou/Bloomberg) Christina Kyriasoglou / Bloomberg : SAP: Q3 cloud revenue up 25% YoY to €6.67B, vs. €6.57B est., total revenue up 12% to €10.27B, current cloud backlog up 26% to €24.1B, all in constant currencies — SAP SE reported higher growth for its cloud products than anticipated in a sign that the boom …

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  5. BL

    Bloomberg@businessPost on X ·

    SAP reported higher growth for its cloud products than anticipated in a sign that the boom in artificial intelligence hasn’t undermined demand for the German software maker’s offerings https://t.co/rM5rnNCGI7

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