Key Highlights Second-quarter revenue reached €9.88B, surpassing analyst expectations of €9.85B Cloud segment revenue climbed 22% year-over-year, hitting €6.28B Cloud backlog expanded 26% on
The enterprise software giant exceeded second-quarter projections, powered by robust cloud performance and increasing adoption of its AI-enhanced business platform.
$SAP Q2’26 EARNINGS HIGHLIGHTS
Non-IFRS EPS: €1.59 (Est. €1.75)
; +9% YoY
FY26 Guidance:…
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The Walldorf-based enterprise software provider posted Q2 non-IFRS revenue totaling €9.88 billion ($11.24B), topping the analyst consensus estimate of €9.85B. The cloud division experienced a 22% year-over-year surge, reaching €6.28 billion. Following the announcement, U.S.-traded SAP shares climbed 5.1% in extended trading, while German-listed shares advanced 6%.
Operating profit on a non-IFRS basis in constant currency expanded 9% compared to the prior year, totaling €2.81 billion. The company’s net income registered €7.23 billion, representing an increase from €6.62 billion in the corresponding quarter last year.
Basic earnings per share on a non-IFRS basis reached €1.59 during the quarter.
The current cloud backlog — considered a critical indicator of future performance — expanded 26% in constant currency, reaching €22.90 billion by quarter’s end. This exceeded the analyst consensus projection of 24.3% growth and represented an acceleration from the 25% growth recorded in the first quarter.
Analysts at Bank of America highlighted the accelerated cloud backlog growth as “the main positive surprise.” While maintaining its Buy rating, the firm slightly reduced its price targets to €208 from €210 and to $237 from $245.
Chief Executive Christian Klein attributed the strong performance to the company’s Autonomous Enterprise initiative. “Customers are selecting SAP to deliver precise and compliant AI results anchored in their essential business operations and data,” Klein stated.
SAP has been expanding its artificial intelligence capabilities — featuring the Joule digital assistant and Business AI Platform — as the software industry navigates challenges from generative AI and autonomous systems capable of automating conventional software tasks.
The company’s U.S.-traded shares have declined approximately 40% since the beginning of the year, mirroring broader industry headwinds. In contrast, the Philadelphia Semiconductor Index has rallied 74.3% during the same period.
The software provider modestly increased its full-year non-IFRS operating profit projection, now anticipating €11.9B to €12.3B in constant currency, compared to the previous range of €11.8B to €12.2B. This adjustment incorporates the effects of recent acquisitions, including the Reltio transaction.
Management also projected full-year non-IFRS cloud revenue between €25.8B and €26.2B, with free cash flow expected to reach approximately €10B.
The company acknowledged that sequential slowdown in cloud and overall revenue growth, an atypically low stock-based compensation expense in the first quarter, increased research and development spending, and the dilutive effects of the Reltio acquisition all pressured operating profit margins.
Operating profit totaled €2.64B, up from €2.46B in the year-ago period, though falling short of the analyst consensus of €2.88B.
The cloud backlog metric of €22.90B at the conclusion of the quarter provides the most transparent indicator of SAP’s revenue momentum entering the latter half of 2026.
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