Germany's SAP lifts 2026 revenue expectations to top of range after backlog beat

Germany-based software giant SAP has raised its revenue forecasts for 2026, citing strong performance in the third quarter. The company reported a 26 per cent increase in cloud backlog, reaching €24.14 billion, surpassing expectations. Cloud revenue grew by 26 per cent to €6.67 billion, while non-IFRS operating profit climbed 18 per cent to €3.03 billion.

SAP's cloud backlog, a key indicator of enterprise tech spending, grew more than UBS's forecasted range of 24 per cent to 25 per cent. The company now anticipates subscription revenue, which includes software accessed remotely, to be at the higher end of its forecast range of €25.8 billion to €26.2 billion. This represents a growth of 23 per cent to 25 per cent, with overall revenue expected to reach €36.3 billion to €36.8 billion, up 12 per cent to 13 per cent from the previous year.

SAP's operating profit outlook remains steady, with an expectation of €11.8 billion to €12.2 billion in constant currencies.