SAP Q1 2026 Results Show Cloud Growth Lifts Profit

SAP SE reported Q1 2026 results on April 23, 2026, showing cloud revenue and backlog gains that lifted operating profit and led the company to reaffirm its full-year guidance while warning of expected cloud growth deceleration in the second quarter.

Quarterly Results and Metrics

SAP’s total revenue reached €9.6 billion in Q1 2026, up 6.0% reported and 12.0% at constant currencies, surpassing analyst estimates. This growth reflected continued customer shifts toward subscription and cloud software models.

Cloud revenue rose 19.0% reported and 27.0% at constant currencies to €6.0 billion. The Cloud ERP Suite grew 23.0% reported and 30.0% at constant currencies. Several quarter-specific factors boosted cloud revenue, while cloud gross margin remained strong at 74.6%, highlighting the profitability of recurring cloud sales.

The current cloud backlog increased 20.0% reported and 25.0% at constant currencies to €21.9 billion. CEO Christian Klein said, "We had a strong start to the year," emphasizing that the larger backlog provides visibility into contracted future cloud revenue as customers move to subscription arrangements.

Non-IFRS operating profit rose 17.0% reported and 24.0% at constant currencies to €2.9 billion. IFRS operating profit also increased 17.0% year over year to €2.7 billion. Management attributed the profit gain to disciplined execution and a €135 million decline in share-based compensation.

Net profit was about €1.9 billion, up roughly 8.0–9.0% year over year, with basic earnings per share between €1.66 and €1.72, reflecting the rise in underlying profit measures. Operating cash flow was reduced by a €408 million payout related to Teradata litigation, which weighed on cash generation during the quarter.

Guidance and Risks

SAP reaffirmed its FY2026 guidance, projecting cloud and software revenue of €36.3–36.8 billion at constant currencies, implying growth of about 12.0–13.0% over 2025. Non-IFRS operating profit is expected between €11.9 billion and €12.3 billion, up roughly 14.0–18.0%. The company forecasts cloud revenue growth of approximately 23.0–25.0% at constant currencies.

This guidance assumes a 1.15 USD/EUR exchange rate, completion of the Reltio integration, and a subsiding of the Middle East conflict. Management also expects a slight deceleration in constant-currency current cloud backlog growth through 2026. Several quarter-specific effects that boosted Q1 cloud revenue are likely to slow growth in Q2. Together, the larger backlog and reaffirmed targets indicate ongoing momentum in SAP’s cloud transition despite near-term geopolitical and quarter-specific headwinds.

The filing reported a cloud customer-satisfaction score of 75–76%, roughly unchanged from the prior year.