SAP Reports Record Quarterly Revenue Exceeding €10 Billion Driven by Cloud Growth
SAP SE (SAP) achieved a significant milestone in its third quarter of 2026, reporting total revenue of €10.3 billion for the first time in a single quarter. This growth was primarily fueled by a 25% increase in cloud revenue and a robust current cloud backlog of €24.1 billion. The company's strategic pivot toward an 'autonomous enterprise' model is gaining traction, with Business AI and Business Data Cloud features included in 90% of its largest deals. Despite the strong top-line performance, management noted some headwinds including a slight compression in cloud gross margins due to heavy investments in AI infrastructure. Additionally, CFO Dominik Asam highlighted potential risks regarding macroeconomic uncertainty and high interest rates, which could impact fourth-quarter bookings and long-term growth trajectories.
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Topics: AI adoption cloud revenue financial results free cash flow operating profit