SAP Crosses €10 Billion Quarterly Revenue, Raises 2026 Outlook
Germany-based SAP, Europe’s largest technology company, reported quarterly revenue exceeding €10 billion for the first time, raising its 2026 revenue outlook to the upper end of its forecast range. The company’s third-quarter performance was supported by strong cloud demand, with cloud revenue increasing 26% to €6.67 billion and its cloud backlog rising 26% to €24.14 billion.
SAP’s non-IFRS operating profit climbed 18% to €3.03 billion, while its profit margin improved to 29.5% from 28.3%. Free cash flow also increased 36% to €1.72 billion. CEO Christian Klein said artificial intelligence was a major driver of customers moving to cloud services, particularly through subscriptions that provide access to SAP’s Joule AI assistant platform and its integration with more than 70 AI models.
The company now expects 2026 revenue of €36.3 billion to €36.8 billion, representing growth of 12% to 13%, at the top of its projected range. Subscription revenue is also expected to reach the upper end of its €25.8 billion to €26.2 billion forecast. However, CFO Dominik Asam cautioned that the fourth quarter would be crucial, citing economic uncertainties linked to rising oil prices and US interest rates.
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