Finance
Sap Reports 17% Rise in First-Quarter Profit
Published by Global Banking & Finance Review®
Posted on April 23, 2026
2 min readLast updated: April 23, 2026
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SAP reported a 17% year‑on‑year rise in first‑quarter operating profit, driven by strong cloud demand and robust cloud revenue/backlog growth. The company also initiated a substantial €10 billion share buyback and proposed a €2.50 dividend, while reaffirming its 2026 guidance.
German software maker SAP beats first-quarter profit estimates on cloud demand
SAP Reports Strong First-Quarter Performance Driven by Cloud Growth
First-Quarter Financial Highlights
April 23 (Reuters) - Europe's largest software maker SAP on Thursday reported a 17% increase in first-quarter profit, beating estimates, due to strong growth in its cloud business.
U.S.-listed shares of SAP were up 5.4% after the results.
Revenue and Profit Details
Total revenue in the three months ended March 31 increased 6% to 9.56 billion euros ($11.17 billion), slightly above estimates of 9.53 billion euros in a company-compiled consensus.
Cloud revenue surged 19% to 5.96 billion euros, above the median analysts' estimate of 5.88 billion euros.
Non-IFRS operating profits, which strip out one-off items, climbed to 2.87 billion euros from 2.46 billion euros in the quarter, ahead of expectations for 2.71 billion euros.
Outlook and Guidance
The company also maintained its full-year outlook for overall revenue growth, including cloud growth at 23% to 25%, but noted this depends on the de-escalation of the Middle East conflict.
SAP expects total revenue growth at constant currencies in 2026 to remain at similar levels as in 2025 and to accelerate in 2027, compared to its previous outlook of growth accelerating through 2027.
Management Commentary
"We have remained focused on managing our cost base and maintaining profitability as we navigate an increasingly complex and uncertain macroeconomic and geopolitical environment," Chief Financial Officer Dominik Asam said.
Additional Information
($1 = 0.8559 euros)
(Reporting by Natalia Bueno Rebolledo and Mrinmay Dey in Mexico City; Editing by Maju Samuel, Pooja Desai and Vijay Kishore)
Key Takeaways
- •Operating profit climbed 17% in Q1 2026, reaching €2.74 billion, supported by surging cloud demand and growth in backlog and revenue. (Sources: Rhea‑AI summary and company data) (stocktitan.net)
- •Cloud revenue soared to €5.96 billion (+27% at constant currency) and current cloud backlog hit €21.9 billion (+25% cc), underlining strong forward visibility. (stocktitan.net)
- •SAP kicked off a €10 billion share repurchase program (first tranche ~€2.6 billion completed) and proposed a €2.50 per‑share dividend, while reiterating full‑year cloud revenue and profit targets for 2026. (stocktitan.net)
References
Frequently Asked Questions about SAP reports 17% rise in first-quarter profit
1What was SAP's first-quarter operating profit growth?
SAP reported a 17% increase in first-quarter operating profit.
2What contributed to SAP's profit rise?
Strong cloud demand helped boost SAP's first-quarter profit.
3Where is SAP based?
SAP is a German software company.
4Who reported SAP's financial results?
Natalia Bueno Rebolledo reported the results, with editing by Maju Samuel.
