FRANKFURT, July 24, 2026, 15:03 CEST SAP ETR:SAP shares advanced on Friday after the company reported a stronger-than-anticipated cloud backlog, offsetting concerns about a reduced profit outlook.
- Shares of SAP were at €136.34, climbing 6.25%, as of 14:35 CEST. Trading on Xetra was ongoing, with the session set to conclude at 17:30.
- Cloud backlog increased by 26% in constant currency terms, surpassing the market forecast of 24%.
- SAP lowered the midpoint of its 2026 operating profit forecast by €100 million, while keeping its cloud revenue goal steady.
SAP’s market capitalisation increased by about €9.9 billion following the surge. The estimate is based on a share price increase of €8.02 and an outstanding share count of 1.23 billion. At the same time, SAP lowered the midpoint of its full-year profit guidance by €100 million.
Instead, investors opted to purchase the forward revenue signal.
The current cloud backlog stands at €22.93 billion, marking a 26% rise at constant currencies, surpassing the anticipated 24%. This backlog reflects contracted cloud revenue projected over the next 12 months.
The primary driver of the beat was not an acquisition. Reltio’s impact on backlog growth was under one percentage point. This suggests core growth stayed above 25%.
The initial, unaudited quarter appeared less robust regarding current earnings. SAP-hosted Visible Alpha consensus details the breakdown below.
| Metric | Q2 2026 actual | Consensus or expectation | Difference |
|---|---|---|---|
| Current cloud backlog growth, constant currency | 26.0% | 24.0% | +2.0 percentage points |
| Cloud revenue | €6.281 billion | €6.255 billion | +0.4% |
| Total revenue | €9.878 billion | €9.849 billion | +0.3% |
| Non-IFRS operating profit | €2.743 billion | €2.882 billion | -4.8% |
| Free cash flow | €3.002 billion | €3.049 billion | -1.5% |
Cloud revenue surpassed expectations by just €26 million, while non-IFRS operating profit fell short by €139 million. As a result, during Friday’s session, investors prioritized booked demand over margins for the quarter.
Cloud ERP Suite revenue increased by 27% at constant currencies, reaching €5.53 billion. Software licence revenue declined 32% to €131 million. The revenue mix kept moving away from upfront licences in favour of subscriptions.
SAP maintained its projection for cloud revenue at €25.8 billion to €26.2 billion. The company also reaffirmed its free-cash-flow outlook at close to €10 billion.
The company has reduced its non-IFRS operating profit forecast to between €11.8 billion and €12.2 billion, from a previous range of €11.9 billion to €12.3 billion. Dremio and Prior Labs are expected to cut 2026 profit by upwards of €100 million.
Chief Financial Officer Dominik Asam stated the revision was “driven solely by mergers and acquisitions.” SAP maintained its other main financial targets. Reuters
Chief Executive Christian Klein stated that customers are seeking “accurate and compliant AI outcomes.” Asam indicated that over 90% of SAP’s 50 biggest deals this quarter featured AI components. SAP News Center
SAP shares advanced more than the 1.4% increase seen in European technology stocks, contributing to a rise in Germany’s DAX. Despite Friday’s climb, SAP was still trading approximately 47% under its 52-week peak of €258.70.
Risks: Revenue from software support declined by 7% at constant currencies. SAP’s forecast factors in short-term easing of tensions in the Middle East. Using exchange rates as of June 30 would trim projected full-year cloud growth by 1.5 points and cut operating profit growth by two points.
Friday’s decision establishes a direct challenge. The backlog needs to turn into revenue as margins accommodate both acquisitions and accelerated research expenditure.
