SAP Beats Q3 as Cloud Backlog Hits €24.1B, Outlook Lifted
SAP beat Q3 EPS and revenue estimates as cloud revenue grew 26% and current cloud backlog rose 28% to €24.1 billion. It now expects 2026 cloud and cloud-and-software revenue toward the upper end of its ranges.
SAP (SAP) reported third-quarter non-IFRS earnings of €1.89 a share, €0.08 above the €1.81 FactSet consensus, on revenue that rose 13.2% to €10.27 billion against €10.10 billion expected. Cloud revenue grew 26%, current cloud backlog rose 28% to €24.1 billion, and SAP now expects 2026 cloud revenue and cloud and software revenue toward the upper end of its outlook ranges. SAP shares closed at $232.62, up $3.64, per the wire headline. Figures come from SAP's Q3 2026 results announcement.
Q3 results
| Measure (€ million unless noted) | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Total revenue | 10,270 | 9,076 | +13% |
| Cloud revenue | 6,668 | 5,290 | +26% (+25% cc) |
| Cloud ERP Suite | 5,924 | 4,586 | +29% (+28% cc) |
| Software licenses | 147 | 161 | −9% |
| Software support | 2,434 | 2,565 | −5% |
| Services | 1,021 | 1,060 | −4% |
| Cloud and software revenue | 9,249 | 8,016 | +15% |
| Operating profit (non-IFRS) | 3,030 | 2,566 | +18% |
| EPS, non-IFRS (€) | 1.89 | 1.59 | +19% |
| EPS, IFRS (€) | 1.96 | 1.72 | +14% |
| Free cash flow (non-IFRS) | 1,718 | 1,266 | +36% |
EPS beat the consensus by about 4%, and revenue by about 1.7%, by our calculation. Cloud was about 65% of revenue, and the non-IFRS operating margin was about 29.5% against 28.3% a year ago, by our calculation. SAP said Q3 cloud revenue was boosted by a multi-quarter catch-up from customers returning from financial distress. Total revenue included €49 million from the Reltio, Dremio and Prior Labs acquisitions. Cc means constant currencies.
Cloud backlog
Current cloud backlog was €24.1 billion, up 28% and up 26% at constant currencies. SAP continues to expect backlog growth to decelerate slightly from the 25% pace of 2025.
2026 outlook
| Item (constant currencies) | Outlook | 2025 base |
|---|---|---|
| Cloud revenue | Toward the upper end of €25.8B–€26.2B (+23% to +25%) | €21.02B |
| Cloud and software revenue | Toward the upper end of €36.3B–€36.8B (+12% to +13%) | €32.54B |
| Operating profit (non-IFRS) | €11.8B–€12.2B (+13% to +17%) | €10.42B |
| Free cash flow (actual currencies) | About €10B | €8.24B |
| Non-IFRS effective tax rate | About 29% | 30.5% |
The operating profit, free cash flow and tax outlooks are continued from prior guidance; the update is that cloud revenue and cloud and software revenue are now expected toward the upper end of their ranges. SAP expects constant-currency total revenue growth in 2026 to stay at a similar level to 2025, when it was 10.6%, and to accelerate in 2027. The midpoint of the operating profit range implies roughly 15% growth, by our calculation.
Nine months
Through the first nine months, cloud revenue was €18.91 billion, up 23% (25% at constant currencies), total revenue was €29.70 billion, up 10%, and non-IFRS operating profit was €8.64 billion, up 14%. Free cash flow was €7.97 billion, up 11%, and non-IFRS EPS was €5.20, up 15%. Software licenses fell 27% and software support fell 8% as customers shift to the cloud.
Sources: SAP Q3 2026 results announcement, with consensus figures as shown in the wire headline. This is informational, not a recommendation to buy or sell.
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