SAP (SAP) investor relations material

Executive summary

• Q2 2026 delivered strong results, with cloud revenue up 22% year-over-year to €6.28 billion and record attendance at the Sapphire event, alongside the launch of the Autonomous Enterprise and Business AI Platform.

• Current cloud backlog reached €22.9 billion, up 27% year-over-year, reflecting robust demand for cloud solutions and the Autonomous Enterprise strategy.

• Major customer wins and successful go-lives across industries, with strong uptake of RISE and GROW with SAP offerings.

• AI transformation is progressing, with up to 30% productivity gains and growing adoption among customers and employees.

• Total revenue increased 9% year-over-year to €9.88 billion, driven by robust cloud and software performance.

Financial highlights

• Cloud revenue rose 22% year-over-year to €6.28 billion; total revenue increased 9% to €9.88 billion.

• Cloud backlog reached €22.9 billion, up 27% year-over-year.

• IFRS operating profit up 8% to €2.64 billion; non-IFRS operating profit up 7% to €2.74 billion.

• IFRS EPS increased 30% to €1.89; non-IFRS EPS up 6% to €1.59.

• Free cash flow for Q2 was €3 billion, up 27% year-over-year.

Outlook and guidance

• 2026 cloud revenue expected at €25.8–26.2 billion, up 23–25% year-over-year; cloud and software revenue at €36.3–36.8 billion, up 12–13%.

• Non-IFRS operating profit forecasted at €11.8–12.2 billion, reflecting over €100 million dilutive impact from recent acquisitions.

• Free cash flow guidance for 2026 is ~€10 billion.

• Non-IFRS effective tax rate expected at ~29%.

• Outlook assumes near-term de-escalation of Middle East conflict; escalation could materially impact results.