Oct 21 : Europe's largest tech company SAP achieved a €10 billion ($11.2 billion) quarterly revenue milestone for the first time on Wednesday, while reporting a 26 per cent rise in current cloud backlog and moving its 2026 revenue expectations to the upper end of its outlook range.
Cloud revenue rose 26 per cent to €6.67 billion in the third quarter while non-IFRS operating profit rose 18 per cent to €3.03 billion. SAP's cloud backlog at constant currencies grew 26 per cent to €24.14 billion ($27.11 billion), ahead of the 24 per cent to 25 per cent growth UBS had forecast.
SAP's order book is watched as a gauge of enterprise tech spending worldwide as its software suite runs accounting and payroll at many of the world's biggest companies. A miss on the measure in January sent the shares down 15 per cent in a single day.
SAP now expects 2026 subscription revenue — access to software customers rent remotely rather than buy and run themselves — toward the top of its €25.8 billion to €26.2 billion forecast, up 23 per cent to 25 per cent. Including the declining classic licence business, it sees revenue of €36.3 to €36.8 billion, up 12 per cent to 13 per cent, at the top of its range. SAP kept its yearly operating profit outlook of €11.8 billion to €12.2 billion at constant currencies.
($1 = 0.8903 euros)