SAP SE (SAP) Earnings Date & Reports
Founded in Germany in 1972 by former IBM employees, SAP is the world’s largest provider of enterprise application software... Show more
SAP is expected to report earnings to rise 7.29% to $2.06 per share on July 23
SAP SE (SAP) Q1 2026 Earnings Recap: Cloud Revenue Surges 27%
Key Takeaways
- Cloud revenue reached €5.96 billion, up 27% at constant currencies (cc), driving strong top-line growth.
- Current cloud backlog (CCB) expanded 25% cc to €21.9 billion, signaling robust future revenue potential.
- Total revenue grew 12% cc to €9.56 billion, slightly above consensus estimates.
- Non-IFRS (adjusted for one-time items) operating profit rose 24% cc to €2.87 billion, with EPS of $1.99 beating consensus of $1.92.
- Full-year 2026 guidance reaffirmed, targeting 23-25% cc cloud revenue growth.
- Shares rallied approximately 6% post-earnings on cloud momentum.
Earnings Context and Why It Matters
As a global leader in enterprise application software, SAP SE's quarterly results are a critical barometer for the cloud computing and AI-driven transformation in business software. The Q1 2026 report, covering January 1 to March 31, underscores SAP's ongoing shift from legacy on-premise licenses to high-margin cloud subscriptions. Investors closely watch cloud metrics amid macroeconomic headwinds and competition from rivals like Salesforce and Oracle. Strong performance here validates SAP's strategy, influences valuation multiples, and signals demand for its ERP (enterprise resource planning) solutions amid digitalization trends.
SAP SE delivered solid Q1 2026 results, with cloud revenue hitting €5,962 million, a 19% increase reported and 27% at cc from €4,993 million a year ago. This topped expectations fueled by Cloud ERP Suite growth of 30% cc. Total revenue came in at €9,555 million, up 6% reported and 12% cc versus €9,013 million in Q1 2025, aligning closely with the consensus estimate of approximately $11.21 billion (or ~€9.55 billion).
CCB stood at €21,932 million, up 20% reported and 25% cc, reflecting deal momentum. Non-IFRS operating profit climbed to €2,867 million (up 17% reported, 24% cc), supported by lower share-based compensation. EPS figures showed IFRS basic at €1.66 (up 9%) and non-IFRS basic at €1.72 (up 20%), translating to an adjusted $1.99 that beat the $1.92 consensus by 3.65%. Guidance for 2026 was confirmed unchanged.
AI Screener
Tickeron’s AI Screener is an AI-powered stock and ETF discovery tool that helps traders and investors filter the market based on technical patterns, fundamentals, trends, volatility, and AI-driven signals. Users can scan thousands of stocks and ETFs using customizable filters such as industry, market capitalization, technical indicators, price patterns, and performance metrics. The screener identifies trade ideas, trending stocks, breakout candidates, and market opportunities more efficiently than manual screening. Explore it today to enhance your analysis.
Market Reaction and Investor Sentiment
SAP shares surged about 6% in pre-market trading the day after the April 23 release, propelled by accelerating cloud metrics and the EPS beat, despite a minor revenue shortfall. Investor sentiment turned positive, focusing on CCB expansion and reaffirmed guidance as signs of sustained demand. Analysts highlighted AI integrations in cloud offerings as a tailwind, though some noted potential Q2 deceleration risks.
Forward Outlook and Key Factors to Monitor
SAP reaffirmed its 2026 guidance, projecting cloud revenue of €25.8-26.2 billion (23-25% cc growth) and non-IFRS operating profit of €11.9-12.3 billion (14-18% cc). Free cash flow is expected at around €10 billion. Management anticipates slight deceleration in cc CCB growth and total revenue expansion similar to 2025 levels, with acceleration into 2027.
Key items to watch include Q2 cloud revenue trends, as company-specific effects may temper growth. Progress on AI capabilities within the Cloud ERP Suite and Joule AI copilot adoption will be pivotal amid enterprise AI hype. The €10 billion share repurchase program, launched in January 2026, could support shareholder returns. Broader factors like macroeconomic conditions, currency fluctuations, and geopolitical tensions may impact deal closures.
Upcoming catalysts involve the Q2 results in July and updates on RISE with SAP and GROW with SAP offerings, which drive cloud transitions.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer. Disclaimers and Limitations
Advertisement
General Information
a provider of e-business software solutions
Industry PackagedSoftware