SAP SAP’s cloud revenue came in just shy of expectations, rising 22% to €5.3 billion (27% in constant currency). ERP Cloud growth eased a bit to 31% in constant currency, down from 34% last quarter. The company’s cloud backlog stayed solid, up 27% in constant currency to €18.8 billion.CEO Christian Klein said adoption across the Business Suite remains strong, especially in areas like Business Data Cloud and AI, adding that SAP continues to gain market share. He pointed to a solid Q4 pipeline, supported by some deals pulled forward from 2026 and major wins such as a $1 billion contract with the U.S. Army. SAP reaffirmed its focus on applications and partnerships with infrastructure providers rather than competing head-on with them, as Oracle does.
Management acknowledged ongoing macro challenges and now expects cloud revenue to land toward the low end of its €21.6–€21.9 billion range. At the same time, it guided non-IFRS operating profit toward the high end of €10.3–€10.6 billion and nudged free cash flow guidance up slightly to €8.0–€8.2 billion. Despite some caution around cloud growth, leadership said they remain confident in delivering a strong Q4 and accelerating total revenue growth in 2026.
