SAP (SAP) Q3 2026 earnings summary

Executive summary

• Q3 revenue was €10.270bn, up 13% reported and 12% at constant currencies; cloud revenue rose 26% reported and 25% at constant currencies.

• Current cloud backlog reached €24.144bn, up 28% reported and 26% at constant currencies.

• IFRS and non-IFRS operating profit each increased 18%, to €2.930bn and €3.030bn, respectively.

• Customer investment continued in cloud, data and Business AI, with Joule Work supporting transformation business cases.

Financial highlights

• Cloud and software revenue was €9.249bn, up 15% reported and 14% at constant currencies; services revenue was €1.021bn, down 4% and 5%, respectively.

• Software licenses and support revenue was €2.581bn, down 5% reported and 6% at constant currencies.

• IFRS profit after tax was €2.269bn, up 11%; non-IFRS profit after tax was €2.171bn, up 17%.

• Q3 growth included a multi-quarter revenue catch-up from customers returning from financial distress; acquisitions contributed €49m revenue and reduced IFRS/non-IFRS operating profit by €59m/€39m.

• 9M revenue was €29.70bn, up 10%; IFRS and non-IFRS net income rose 15% to €6.42bn and 14% to €6.00bn, respectively.

Outlook and guidance

• FY 2026 cloud revenue guidance is €25.8–26.2bn at constant currencies, up 23%–25%, with outlook toward the upper end.

• FY 2026 cloud and software revenue guidance is €36.3–36.8bn at constant currencies, up 12%–13%, with outlook toward the upper end.

• FY 2026 non-IFRS operating profit guidance remains €11.8–12.2bn at constant currencies, up 13%–17%; free cash flow outlook is ~€10bn.

• Current cloud backlog growth is expected to slightly decelerate; the full-year backlog outlook assumes a stable Q4 macroeconomic environment.

• 2026 constant-currency total revenue growth is expected near 2025’s 10.6%, then accelerate in 2027; 2027 non-IFRS operating expense growth is expected at 80%–90% of revenue growth.