SAP delivers record quarterly revenue as its autonomous enterprise strategy picks up speed
Europe’s biggest software company SAP SE delivered record-breaking quarterly revenue after surpassing the €10 billion ($11.2 billion) barrier for the first time earlier today, while delivering a 26% increase in its current cloud backlog and lifting its revenue outlook for the full year. The Germany-based firm reported earnings before certain costs such as stock compensation […] The post SAP…
SAP, Europe's largest software company, announced record quarterly revenue of €10.27 billion, surpassing the €10 billion mark for the first time. Earnings before certain costs were €1.89 per share, outperforming analysts' expectations. Cloud revenue grew by 25% to €6.67 billion, while non-IFRS operating profit increased by 18% to €3.03 billion.
The company's cloud backlog expanded 26% to €24.11 billion, exceeding the 24% to 25% forecast. SAP's full-year operating profit outlook remains between €11.8 billion and €12.2 billion. The success of the company's "autonomous enterprise" strategy, which emphasizes its AI-powered Joule tool, is evident in the record results. Chief Executive Christian Klein stated that AI was a significant driver of customer cloud adoption during the quarter.
CFO Dominik Asam warned of the challenging economic environment, citing rising oil prices and U.S. interest rates. Despite the gloomy outlook, SAP expects to deliver subscription revenue of €25.8 billion to €26.2 billion in fiscal 2026, representing a 23% to 25% growth.
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