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Germany's SAP hits €10 billion quarterly revenue milestone, lifts 2026 view - Finance news and analysis from Global Banking & Finance Review
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Germany's SAP hits €10 billion quarterly revenue milestone, lifts 2026 view

Published by Global Banking & Finance Review

Posted on October 21, 2026

2 min read

· Last updated: October 21, 2026

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SAP Achieves €10 Billion Quarterly Revenue and Increases 2026 Forecast

SAP Reports Record Financial Results and Updates Outlook

By Leo Marchandon

Quarterly Revenue Milestone and Cloud Growth

Oct 21 (Reuters) - Europe's largest tech company SAP achieved a €10 billion ($11.2 billion) quarterly revenue milestone for the first time on Wednesday, while reporting a 26% rise in current cloud backlog and moving its 2026 revenue expectations to the upper end of its outlook range.

Cloud Revenue and Operating Profit

Cloud revenue rose 26% to €6.67 billion in the third quarter while non-IFRS operating profit rose 18% to €3.03 billion. SAP's cloud backlog at constant currencies grew 26% to €24.14 billion ($27.11 billion), ahead of the 24% to 25% growth UBS had forecast.

Order Book and Profit Outlook

SAP's order book is watched as a gauge of enterprise tech spending worldwide as its software suite runs accounting and payroll at many of the world's biggest companies. SAP held its operating profit outlook at €11.8 billion to €12.2 billion at constant currencies, a range trimmed in July for its recent acquisitions.

A miss on the measure in January sent the shares down 15% in one day. 

Factors Driving Growth and Future Projections

Cloud Revenue Drivers and Profit Margin

SAP said growth in cloud revenue was helped by customers returning from "financial distress." Its profit margin widened to 29.5% from 28.3% while free cash flow rose 36% to €1.72 billion.

2026 Revenue Forecast and Subscription Model

SAP now expects 2026 subscription revenue — access to software customers rent remotely rather than buy and run themselves — toward the top of its €25.8 billion to €26.2 billion forecast, up 23% to 25%. Including the declining classic licence business, it sees revenue of €36.3 billion to €36.8 billion, up 12% to 13%, at the top of its range.  SAP kept its yearly operating profit outlook of €11.8 billion to €12.2 billion at constant currencies.

Leadership Comments and New Customers

CEO Christian Klein called it "an outstanding quarter." Customers are "investing in the technology behind" the company's AI strategy, he said. New cloud customers included AstraZeneca, Infineon and Henkel.

Additional Information

($1 = 0.8903 euros)

(Reporting by Leo Marchandon in Gdansk; Editing by Daniel Wallis and Rod Nickel)

Key Takeaways

  • SAP exceeded €10 billion in Q3 revenue, led by 26% cloud growth to €6.67 billion and 26% constant‑currency increase in cloud backlog to €24.14 billion, beating UBS forecasts of 24–25 %.
  • Profitability metrics were strong: non‑IFRS operating profit rose 18% to €3.03 billion, margin expanded to 29.5%, and free cash flow climbed 36% to €1.72 billion.
  • SAP raised its full‑year 2026 outlook: subscription (cloud) revenue now expected toward top of €25.8–26.2 billion range, total revenue toward top of €36.3–36.8 billion, and maintained operating profit guidance of €11.8–12.2 billion.
  • Growth reflects enterprises investing in SAP’s AI‑driven solutions, with new cloud customers including AstraZeneca, Infineon and Henkel.

Frequently Asked Questions

What quarterly revenue milestone did SAP achieve?
SAP reached €10 billion in quarterly revenue for the first time.
How much did SAP's cloud revenue and backlog grow?
Cloud revenue rose 26% to €6.67 billion, and cloud backlog grew 26% to €24.14 billion.
What is SAP's operating profit outlook for the year?
SAP maintained its operating profit outlook at €11.8 billion to €12.2 billion at constant currencies.
Why is SAP's cloud order book significant?
It is seen as a gauge of enterprise tech spending, as SAP's software is widely used by major corporations.
Which companies were mentioned as new SAP cloud customers?
AstraZeneca, Infineon, and Henkel were noted as new SAP cloud customers.

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