SAP (SAP) Q3 2026 Earnings
Non-IFRS basic EPS (no diluted non-IFRS figure disclosed); excludes €104 million acquisition-related charges and €176 million net gains from equity securities. IFRS diluted EPS was €1.94.
How Did SAP Stock React to Q3 2026 Earnings?
Did SAP Beat Earnings? Q3 2026 Results
Yes. SAP reported Q3 2026 earnings of $2.12 a share on Oct 26, 2026, beating the $2.09 consensus estimate by 1.5%. Revenue was $11.5B against a $10.1B estimate.
SAP posted a strong third quarter, with cloud momentum driving revenue to $11.51 billion, a 13.2% year-over-year gain that cleared the $10.10 billion consensus by nearly 14%. Adjusted EPS of $2.12 edged past the $2.09 estimate by 1.50%, supported by a 26% jump in cloud revenue and a 29% rise in Cloud ERP Suite revenue, the latter reflecting accelerating customer adoption of SAP's Autonomous Enterprise strategy. A notable tailwind came from multi-quarter revenue catch-ups as customers emerged from financial distress, a dynamic the company acknowledged as a quarter-specific effect. Current cloud backlog climbed 28% to $27.05 billion, reinforcing the durability of the revenue pipeline even as legacy on-premise software licenses and support continued to shrink. Three acquisitions closed during the quarter, including data management platform Reltio and data lakehouse provider Dremio, contributing $54.90 million of revenue. Looking ahead, SAP nudged its 2026 cloud revenue guidance toward the upper end of its range and maintained a free cash flow target of approximately $10 billion, while signaling that total revenue growth is expected to accelerate in 2027.
- Current cloud backlog of €24.1 billion, up 28% (26% at constant currencies)
- Cloud ERP Suite revenue up 29%
- Multi-quarter cloud revenue catch-up from customers returning from financial distress
- Cost discipline lifting non-IFRS operating margin 1.2pp to 29.5%
- Prior-year comparison benefits from about €0.1 billion each of Q3 2025 tax litigation and workforce transformation charges
- Acquisitions contributed €49 million of revenue but reduced non-IFRS operating profit by €39 million
“Q3 was an outstanding quarter, with current cloud backlog up 26% at constant currencies. Our Autonomous Enterprise strategy is not just resonating, it is being adopted.”
SAP CEO, on the earnings call
What Is SAP's Outlook?
SAP updated its 2026 outlook and now expects cloud revenue toward the upper end of €25.8–26.2 billion at constant currencies (up 23% to 25%). It expects cloud and software revenue toward the upper end of €36.3–36.8 billion at constant currencies (up 12% to 13%). SAP continues to expect: - Non-IFRS operating profit of €11.8–12.2 billion at constant currencies (up 13% to 17%). - Free cash flow of approximately €10 billion. - A non-IFRS effective tax rate of approximately 29%. - Constant-currency current cloud backlog growth to slightly decelerate. SAP further expects: - 2026 constant-currency total revenue growth similar to 2025 (10.6%), accelerating in 2027. - 2027 non-IFRS total operating expenses to grow at 80% to 90% of total revenue growth. - The software support revenue decline to accelerate in the coming years. The outlook assumes a stable macroeconomic environment in Q4. Based on September 30 rates, currency is expected to add 2.0pp to Q4 cloud revenue growth and subtract 1.5pp for FY 2026.
SAP YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $11.5B | $10.2B | +13.2% |
| Gross Profit | $8.4B | $7.5B | +12.6% |
| Operating Income | $3.3B | $2.8B | +17.8% |
| Net Income | $2.5B | $2.2B | +12.2% |
SAP Revenue by Segment
SAP Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.