Key Highlights
- Q2 total revenue reached €9.88B, surpassing the €9.85B analyst estimate
- Cloud revenue increased 22% compared to last year, totaling €6.28B
- Cloud backlog expanded 26% in constant currency, reaching €22.90B
- SAP shares in the U.S. jumped 5.1% in after-hours trading; German shares climbed 6%
- Company increased full-year non-IFRS operating profit outlook to €11.9B–€12.3B
SAP delivered second-quarter results that topped Wall Street estimates, propelled by robust cloud performance and increasing appetite for its AI-powered business solutions.
The Walldorf-based enterprise software giant posted Q2 non-IFRS revenue of €9.88 billion ($11.24B), exceeding the analyst consensus estimate of €9.85B. Cloud-based revenue surged 22% from the prior-year period to €6.28 billion. SAP’s U.S.-traded shares advanced 5.1% in extended trading, while its Frankfurt-listed stock jumped 6% following the announcement.
The company’s non-IFRS operating profit in constant currency expanded 9% year-over-year to €2.81 billion. Net profit reached €7.23 billion, compared with €6.62 billion in the same quarter last year.
Non-IFRS basic earnings per share registered at €1.59 during the quarter.
The current cloud backlog — a critical indicator of future revenue potential — expanded 26% in constant currency to €22.90 billion at the end of the quarter. This outpaced the analyst projection of 24.3% growth and represented an acceleration from the 25% expansion recorded in the first quarter.
Bank of America analysts highlighted the cloud backlog acceleration as “the main positive surprise.” While maintaining its Buy recommendation, the firm modestly reduced its price targets to €208 from €210 and to $237 from $245.
AI and Cloud Solutions Fuel Growth
Chief Executive Christian Klein credited the company’s Autonomous Enterprise initiative as the catalyst for the strong performance. “Customers are choosing SAP to enable accurate and compliant AI outcomes grounded in their most critical business processes and data,” Klein stated.
SAP has been expanding its artificial intelligence capabilities — including the Joule digital assistant and Business AI Platform — as the enterprise software industry confronts challenges from generative AI and autonomous agents capable of automating conventional software tasks.
Despite the positive quarterly results, SAP’s U.S.-listed shares have declined approximately 40% so far this year, mirroring widespread pressure across the software sector. In comparison, the Philadelphia Semiconductor Index has soared 74.3% during the same period.
Updated Financial Outlook
SAP modestly increased its full-year non-IFRS operating profit forecast, now projecting €11.9B to €12.3B in constant currency, compared to the previous range of €11.8B to €12.2B. This adjustment accounts for the effects of recent M&A activity, including the Reltio acquisition.
The enterprise software leader also projected full-year non-IFRS cloud revenue between €25.8B and €26.2B, along with free cash flow of roughly €10B.
SAP acknowledged that sequential slowdown in cloud and overall revenue growth, an abnormally low stock-based compensation charge in the first quarter, increased research and development spending, and the dilutive effect of the Reltio transaction all pressured operating profit margins.
Operating profit totaled €2.64B, up from €2.46B in the year-ago period, but trailing the analyst consensus of €2.88B.
The quarter-end cloud backlog figure of €22.90B provides the most transparent indication of SAP’s revenue momentum as the company heads into the latter half of 2026.
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