Key Highlights
- Second quarter revenue reached €9.88B, surpassing the €9.85B consensus estimate
- Cloud segment delivered 22% year-over-year growth, generating €6.28B in revenue
- Cloud backlog expanded 26% in constant currency terms, reaching €22.90B
- SAP shares gained 5.1% in U.S. after-hours trading; German-listed stock climbed 6%
- Company lifted full-year non-IFRS operating profit outlook to €11.9B–€12.3B range
The enterprise software giant from Germany exceeded second-quarter revenue projections, fueled by robust cloud performance and increasing adoption of its artificial intelligence-powered business solutions.
$SAP Q2’26 EARNINGS HIGHLIGHTS
🔹 Non-IFRS EPS: €1.59 (Est. €1.75) 🔴
🔹 Revenue: €9.88B (Est. €9.85B) 🟢; +9% YoY
🔹 Cloud Revenue: €6.28B (Est. €6.26B) 🟢; +22% YoY
🔹 Cloud ERP Suite Revenue: €5.53B; +25% YoY
🔹 Current Cloud Backlog: €22.93B; +27% YoYFY26 Guidance:…
— Wall St Engine (@wallstengine) July 23, 2026
SAP delivered non-IFRS quarterly revenue of €9.88 billion ($11.24B), topping analyst expectations of €9.85B. The company’s cloud division posted impressive year-over-year expansion of 22%, generating €6.28 billion. Following the announcement, SAP’s U.S.-traded shares climbed 5.1% in extended trading, while its German-listed stock advanced 6%.
On a constant currency basis, non-IFRS operating profit increased 9% compared to the prior year period, totaling €2.81 billion. The company posted net income of €7.23 billion, representing an increase from €6.62 billion recorded twelve months earlier.
Non-IFRS basic earnings per share reached €1.59 during the three-month period.
The company’s current cloud backlog — a critical indicator of future revenue potential — expanded 26% on a constant currency basis to €22.90 billion by quarter’s end. This performance exceeded the analyst consensus projection of 24.3% growth and showed acceleration from the first quarter’s 25% expansion.
Bank of America analysts highlighted the cloud backlog acceleration as “the main positive surprise” in their assessment. The firm maintained its Buy recommendation while making minor adjustments to price targets, lowering them to €208 from €210 and to $237 from $245.
AI and Cloud Solutions Powering Growth
Chief Executive Christian Klein attributed the strong performance to the company’s Autonomous Enterprise vision. “Customers are choosing SAP to enable accurate and compliant AI outcomes grounded in their most critical business processes and data,” Klein stated.
SAP has been expanding its artificial intelligence capabilities — including the Joule digital assistant and Business AI Platform — amid mounting challenges across the software industry from generative AI technologies and autonomous agents capable of automating conventional software tasks.
Despite the positive quarterly results, SAP’s U.S.-traded shares have declined approximately 40% since the beginning of the year, mirroring wider software sector headwinds. In sharp contrast, the Philadelphia Semiconductor Index has soared 74.3% during the same timeframe.
Updated Full-Year Outlook
The company modestly increased its full-year non-IFRS operating profit projection, now anticipating €11.9B to €12.3B in constant currency terms, compared to the previous range of €11.8B to €12.2B. This adjustment incorporates the financial impact of recent acquisitions, most notably Reltio.
Management also provided full-year guidance for non-IFRS cloud revenue between €25.8B and €26.2B, alongside expected free cash flow of roughly €10B.
The company acknowledged that consecutive quarter deceleration in cloud and overall revenue expansion, an abnormally low stock-based compensation charge in the first quarter, increased research and development spending, and the dilutive effects from the Reltio acquisition all pressured operating profit margins.
Quarterly operating profit totaled €2.64B, up from €2.46B in the year-ago period, though falling short of the analyst consensus estimate of €2.88B.
The €22.90B cloud backlog figure at the end of the quarter provides the most tangible indication of SAP’s revenue momentum as the company approaches the latter half of 2026.
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