SAP SE reported record quarterly revenue of €10.27 billion, exceeding the €10 billion threshold for the first time. Earnings per share reached €1.89, surpassing analyst expectations of €1.83. The company's cloud revenue grew 25% to €6.67 billion, while non-IFRS operating profit rose 18% to €3.03 billion.
The company's cloud backlog increased by 26% to €24.11 billion, outperforming market forecasts. Free cash flow saw a 36% rise, reaching €1.72 billion. SAP expanded its profit margin to 29.5% during the quarter, compared to 28.3% in the previous period.
CEO Christian Klein attributed the growth to the company's autonomous enterprise strategy and the adoption of the Joule AI agent, which integrates with over 70 AI models. Hundreds of new customers subscribed to the service during the quarter to access these AI capabilities.
For the full fiscal year 2026, SAP expects subscription revenue to reach the upper end of its €25.8 billion to €26.2 billion forecast range. Total revenue for the year is projected to fall between €36.3 billion and €36.8 billion, representing a 12% to 13% increase.
