TLDR
- SAP Q2 revenue came in at €9.88B, beating analyst forecasts of €9.85B
- Cloud revenue rose 22% year-over-year to €6.28B
- Current cloud backlog grew 26% in constant currency to €22.90B
- U.S.-listed SAP stock rose 5.1% after hours; Germany-listed shares rose 6%
- Full-year non-IFRS operating profit guidance raised slightly to €11.9B–€12.3B
SAP beat second-quarter revenue expectations on the back of strong cloud growth and rising demand for its AI business platform.
$SAP Q2’26 EARNINGS HIGHLIGHTS
🔹 Non-IFRS EPS: €1.59 (Est. €1.75) 🔴
🔹 Revenue: €9.88B (Est. €9.85B) 🟢; +9% YoY
🔹 Cloud Revenue: €6.28B (Est. €6.26B) 🟢; +22% YoY
🔹 Cloud ERP Suite Revenue: €5.53B; +25% YoY
🔹 Current Cloud Backlog: €22.93B; +27% YoYFY26 Guidance:…
— Wall St Engine (@wallstengine) July 23, 2026
The German software company reported Q2 non-IFRS revenue of €9.88 billion ($11.24B), above the €9.85B analyst consensus. Cloud revenue jumped 22% year-over-year to €6.28 billion. U.S.-listed SAP stock rose 5.1% after hours, while Germany-listed shares gained 6% on the news.
Non-IFRS operating profit in constant currency rose 9% year-over-year to €2.81 billion. Net income came in at €7.23 billion, up from €6.62 billion a year earlier.
Non-IFRS earnings per basic share hit €1.59 for the quarter.
The current cloud backlog — a key forward-looking metric — grew 26% in constant currency to €22.90 billion at quarter end. That came in ahead of the analyst consensus of 24.3% growth and accelerated from 25% growth in Q1.
Bank of America analysts flagged the cloud backlog acceleration as “the main positive surprise.” The bank kept its Buy rating but trimmed its price targets slightly, to €208 from €210 and to $237 from $245.
Cloud and AI Driving Demand
CEO Christian Klein pointed to the company’s Autonomous Enterprise strategy as the engine behind results. “Customers are choosing SAP to enable accurate and compliant AI outcomes grounded in their most critical business processes and data,” Klein said.
SAP has been building out its AI tools — including the Joule assistant and Business AI Platform — as the broader software sector faces pressure from generative AI and agentic models that can automate many traditional software functions.
SAP’s U.S.-listed stock has fallen nearly 40% year-to-date, reflecting that broader sector pressure. The Philadelphia Semiconductor Index, by contrast, has surged 74.3% YTD.
Guidance Gets a Lift
SAP raised its full-year non-IFRS operating profit guidance slightly, now expecting €11.9B to €12.3B in constant currency, up from the prior range of €11.8B to €12.2B. The revision reflects the impact of recent acquisitions, including Reltio.
The company also forecast full-year non-IFRS cloud revenue of €25.8B to €26.2B and free cash flow of approximately €10B.
SAP noted that sequential deceleration in cloud and total revenue growth, an unusually low stock-based compensation expense in Q1, accelerated R&D investment, and the dilutive impact of the Reltio deal all weighed on operating profit margins.
Operating profit came in at €2.64B, up from €2.46B a year ago, but below the analyst consensus of €2.88B.
The cloud backlog figure of €22.90B at quarter end represents the clearest signal of SAP’s forward revenue trajectory heading into the second half of 2026.
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