SAP SE (SAP) Stock: Climbs as Q3 Revenue Tops €10 Billion and Cloud Growth Hits 26% – BitRss

TLDR

• SAP stock gains after quarterly revenue crosses €10 billion for the first time.
• Cloud revenue jumps 26% as SAP’s cloud backlog climbs 28% to €24.1 billion.
• SAP’s operating profit rises 18%, with non-IFRS earnings reaching €3.03 billion.
• Cloud ERP Suite revenue surges 29%, reflecting strong enterprise cloud demand.
• SAP targets the high end of its 2026 cloud revenue range after a strong Q3.

SAP SE (SAP) reported strong third-quarter 2026 earnings as cloud revenue growth and higher operating profit supported its financial performance. The German software company exceeded €10 billion in quarterly revenue for the first time, marking a major financial milestone. Meanwhile, SAP stock gained during regular trading and extended its advance after hours following the earnings announcement.

SAP shares climbed 1.64% to $232.73 during regular trading, adding $3.75 to their previous closing price. After the closing bell, the stock advanced another 1.01% to $235.09. The gains followed continued growth across SAP’s cloud business and stronger quarterly profitability.

SAP SE, SAP

SAP Cloud Revenue Jumps 26% as Backlog Reaches €24.1 Billion

SAP reported a 26% increase in cloud revenue during the third quarter, reflecting continued demand for its enterprise software services. At constant currencies, cloud revenue grew 25%, demonstrating growth across its subscription-based business. Meanwhile, Cloud ERP Suite revenue increased 29%, supported by companies moving business operations onto cloud platforms.

The company’s current cloud backlog reached €24.1 billion, representing a 28% increase from the previous year. At constant currencies, backlog growth reached 26%, reflecting demand for contracted cloud services. This backlog provides SAP with visibility into future revenue from existing customer commitments.

SAP continues to expand its cloud portfolio as businesses modernize their financial, operational, and data management systems. Its cloud ERP products support companies seeking integrated platforms for managing daily operations. SAP’s Business AI services form part of its broader strategy to automate enterprise processes.

SAP Q3 Revenue Exceeds €10 Billion as Operating Profit Rises 18%

SAP generated €10.27 billion in total third-quarter revenue, an increase of 13% from the previous year. At constant currencies, total revenue increased 12%, supported by continued cloud expansion. The result marked the first time SAP exceeded €10 billion in quarterly revenue.

IFRS operating profit increased 18% to €2.93 billion during the quarter, reflecting stronger business performance. Meanwhile, non-IFRS operating profit also rose 18%, reaching €3.03 billion for the first time. SAP attributed its profitability gains to revenue growth, operating scale, and disciplined cost management.

Chief Executive Christian Klein highlighted customer adoption of SAP’s Autonomous Enterprise strategy during the quarterly earnings announcement. The strategy combines cloud infrastructure, business data, and artificial intelligence to support enterprise operations. Meanwhile, Chief Financial Officer Dominik Asam emphasized the company’s ability to expand revenue and operating profit simultaneously.

SAP Updates 2026 Cloud Outlook Following Strong Q3 Results

SAP updated its full-year 2026 cloud revenue outlook following the third-quarter performance. The company now expects cloud revenue near the upper end of its €25.8 billion to €26.2 billion range. This forecast represents expected constant-currency growth of 23% to 25% compared with 2025.

SAP also expects cloud and software revenue near the upper end of its €36.3 billion to €36.8 billion range. The company maintained its broader focus on cloud migration, business applications, and AI-supported enterprise services. These areas remain central to SAP’s strategy for expanding recurring revenue and supporting customer transformation.

The quarterly results showed continued growth in cloud subscriptions alongside higher operating earnings. SAP’s expanding backlog also highlighted the role of long-term customer contracts in its business model. Together, these developments strengthened the company’s third-quarter performance and supported its updated full-year revenue expectations.

 

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