From BigGo Finance · BigGo Finance · · 1m 40s
SAP Q3 Revenue Tops €10 Billion
SAP's cloud revenue surged 25% to €6.7 billion as it crossed €10 billion quarterly revenue for the first time.
In brief
SAP's cloud revenue surged 25% to €6.7 billion as it crossed €10 billion quarterly revenue for the first time. SAP reported €10.3 billion quarterly revenue, with cloud revenue up 25% to €6.7 billion and cloud backlog growing 26% to €24.1 billion. Originally reported by BigGo Finance.
SAP Q3 Revenue Milestone
![[SAP Q3 2026 Earnings Call] SAP Tops €10 Billion Quarterly Revenue for First Time as Cloud Backlog Climbs 26% to €24.1 Billion](https://img.biggo.com/bb_wU7lHli5olQsBuqvcUangY6QClOr7UdTS-ZLfF-8/fit/1720/0/sm/0/aHR0cHM6Ly9pbWcuYmdvLm9uZS9uZXdzLWltYWdlL2Vhcm5pbmdzX2NhcmQvMjAyNi0xMC9VU19TQVBfMjAyNi0xMC0yMV8xNzkyNjI0NzQzLndlYnA.webp)
SAP crossed €10 billion quarterly revenue for the first time in its history.
Cloud Revenue Growth
Cloud revenue rose 25% to €6.7 billion, with current cloud backlog growing 26% to €24.1 billion.
Non-IFRS Profit Boost
Non-IFRS operating profit climbed 18% to over €3 billion and EPS rose 19% to €1.89.
AI Integration Focus
Nine of SAP's ten largest deals included AI and Business Data Cloud, with cloud ERP suite revenue up 28%.
Joule Work Launch
SAP launched Joule Work, a natural-language workbench for the autonomous enterprise.
Cloud Gross Margin Dip
Cloud gross margin dipped 0.7 points to 74.3% on ai investments and higher hardware costs.
Q4 Macro Challenges
Q4 faces tougher macro backdrop with oil near $110 and u.s. rates above 5%.
2027 Revenue Outlook
Management expects revenue growth to accelerate in 2027 but called the path more challenging.
Analyst Q&A Highlights
Analysts pressed on ccb growth, ai accuracy, and q4 revenue bridge with mixed responses.
Q4 Revenue Bridge
Q4 cloud growth expected around 23%, dampened by easier comparables and acquisition impacts.
AI Productivity Gains
AI-driven productivity gains across r&d, cloud delivery, sales, finance and hr.
Q4 Focus on Bookings
SAP prioritizes q4 bookings to maintain growth acceleration against challenging 2027 comparables.
What it means
SAP reported €10.3 billion quarterly revenue, with cloud revenue up 25% to €6.7 billion and cloud backlog growing 26% to €24.1 billion.
