SAP Reports Strong Q3 Revenue Growth and Updated 2026 Outlook
News related to:SAP SE · 2 min read
WALLDORF, Germany, SAP SE, a global leader in enterprise applications and business AI, reported strong financial results for the third quarter ended September 30, 2026. The company's cloud backlog reached €24.1 billion, marking a 28% increase from the previous year, with a 26% rise at constant currencies. Cloud revenue surged by 26% and 25% at constant currencies, while the cloud ERP Suite revenue grew by 29% and 28% at constant currencies. Total revenue increased by 13% and 12% at constant currencies, reflecting the company's continued momentum in the digital transformation space.
SAP's cloud revenue performance was particularly strong in the Asia-Pacific and Europe, Middle East, and Africa regions, with Brazil, France, Germany, Italy, India, South Korea, and Spain showing outstanding performance. The United States and Switzerland also contributed significantly to the company's growth.
The company's financial outlook for 2026 includes an expectation of generating cloud revenue towards the upper end of the outlook range of €25.8-26.2 billion at constant currencies, up 23% to 25% from 2025. SAP also expects cloud and software revenue to reach €36.3-36.8 billion at constant currencies, up 12% to 13% from 2025. The company aims for non-IFRS operating profit of €11.8-12.2 billion at constant currencies, up 13% to 17% from 2025, and approximately €10 billion in free cash flow.
SAP's share repurchase program, announced in January 2026, saw the company repurchase 25,205,983 shares at an average price of €164.79, amounting to approximately €4.2 billion under the program.
The company's 2026 financial outlook for the income statement parameters is at constant currencies, including an average exchange rate of 1.13 USD per EUR. However, actual currency reported figures are expected to be impacted by currency exchange rate fluctuations.
In the third quarter, SAP's cloud revenue performance was particularly strong in APJ and EMEA, with Brazil, France, Germany, Italy, India, South Korea, and Spain showing outstanding performance. The company also highlighted key customer wins, including AstraZeneca, Aydem Enerji, and Infineon Technologies, among others.
SAP's cloud customer satisfaction (Cloud CSAT) is expected to be in a range of 75% to 76%, the employee engagement index in a range of 74% to 78%, and the business health culture index (BHCI) in a range of 80% to 82%. The company also aims to steadily decrease carbon emissions across the relevant value chain.
On July 6, SAP completed the acquisition of Dremio, an open, high-performance data lakehouse platform, and on July 17, it completed the acquisition of Prior Labs, the pioneer of Tabular Foundation Models (TFMs). Additionally, SAP showcased the Autonomous Enterprise in action at SAP Connect, demonstrating how Joule Work and Joule Assistants generate value for customers across every line of business.
SAP also announced an agreement to acquire TechWolf, a provider of a leading AI work intelligence platform, further strengthening its position in the AI and data solutions space.