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

On October 21, Germany's leading tech company SAP announced it had reached a quarterly revenue milestone of €10 billion ($11.2 billion) for the first time. The company also reported a 26% increase in its current cloud backlog and an upward revision of its 2026 revenue expectations. Cloud revenue grew by 26% to €6.67 billion in the third quarter, while non-IFRS operating profit rose by 18% to €3.03 billion.

SAP's cloud backlog, measured at constant currencies, expanded 26% to €24.14 billion ($27.11 billion), surpassing UBS's forecast of a 24% to 25% growth. The company's order book serves as an indicator of global enterprise tech spending, as its software suite powers accounting and payroll systems for numerous major corporations. SAP's previous miss on the measure in January resulted in a 15% share price drop.

In their outlook, SAP now anticipates 2026 subscription revenue, encompassing remote software access, to be near the upper limit of its forecast of €25.8 billion to €26.2 billion, representing a 23% to 25% increase. When considering the decline in their classic license business, SAP projects revenue of €36.3 billion to €36.8 billion, a 12% to 13% rise, at the top of their range.

SAP maintained its yearly operating profit estimate of €11.8 billion to €12.2 billion at constant currencies.