Companies /Technology

Sap SE

NYSE: SAP Software - Application
$209.69
▼ $2.35 (−1.11%) today
Markets closed · 1:12am ET

Q1 2026 Earnings

Reported Apr 28, 2026, 6:00am ET · SEC source
$1.72
Miss −10.42%
EPS · est. $1.92
$9.6B
Miss +0.00%
Revenue · est. $0
+8.7%
Beating market
SAP vs S&P since report
1 quarter
Consecutive EPS misses

Market Reaction

% change · around the report
−2%−1%0+1%Apr 28Apr 29report 6:00am ETearnings−0.5%−1.8%
−2%−1%0+1%Apr 28Apr 29earnings−0.5%−1.8%
SAP −1.8%S&P 500 −0.5%
−2%−1%0+1%Apr 28Apr 29report 6:00am ETearnings−0.1%−1.8%
−2%−1%0+1%Apr 28Apr 29earnings−0.1%−1.8%
SAP −1.8%NASDAQ −0.1%
−3%0+3%Apr 27May 6report 6:00am ETearnings+2.3%+4.6%
−3%0+3%Apr 27May 6earnings+2.3%+4.6%
SAP +4.6%S&P 500 +2.3%
−3%0+3%Apr 27May 6report 6:00am ETearnings+4.8%+4.6%
−3%0+3%Apr 27May 6earnings+4.8%+4.6%
SAP +4.6%NASDAQ +4.8%
−1.95%
Day of report
−0.36%
Next session
+1.78%
One week
+15.29%
30 days

S&P 500 over the same 30 days: +6.60%.

Did SAP Beat Earnings? Q1 2026 Results

SAP posted a mixed first quarter for fiscal 2026, with earnings per share of $1.72 falling short of the $1.92 consensus estimate by 10.42%, even as revenue climbed 6.0% year over year to $9.55 billion. The headline EPS miss belied meaningful momentum in the company's cloud transition, with cloud revenue surging 19% to $5.96 billion and the current cloud backlog reaching $21.93 billion, up 20%, signaling durable demand for SAP's enterprise software platform. A roughly €60 decline in SAP's share price during the quarter reduced share-based compensation expenses by $135.00 million, providing a notable tailwind to non-IFRS operating profit, which rose 17% to $2.87 billion and pushed non-IFRS operating margin to 30.0%. Free cash flow, however, slipped to $3.25 billion from $3.58 billion a year earlier, partly weighed down by a $480.00 million Teradata litigation settlement paid in March. SAP reaffirmed its full-year outlook, targeting cloud revenue growth of 23% to 25% at constant currencies, though it cautioned that cloud growth is expected to decelerate in Q2 following several quarter-specific tailwinds in Q1.

Key Takeaways
  • Cloud ERP Suite revenue growth of 30% at constant currencies
  • Current cloud backlog growth of 25% at constant currencies
  • Business AI momentum driving customer adoption and expansion
  • Share-based compensation expenses declined €135 million, supporting operating profit
  • Strong cloud revenue performance in APJ and EMEA regions

“We had a strong start to the year, with Current Cloud Backlog growing by 25% and Cloud Revenue up 27% at constant currencies. This performance is supported by our momentum in Business AI as we are already delivering real outcomes for customers today. We are growing faster than the market and are gaining share as customers expand across our Suite and with our AI solutions. At Sapphire, we will show how we are taking the next leap forward.”

SAP CEO, on the earnings call

Forward Guidance & Outlook

SAP reaffirmed its full-year 2026 outlook: cloud revenue of €25.8–26.2 billion at constant currencies (up 23%–25%), cloud and software revenue of €36.3–36.8 billion at constant currencies (up 12%–13%), non-IFRS operating profit of €11.9–12.3 billion at constant currencies (up 14%–18%), and approximately €10 billion free cash flow. The effective tax rate (non-IFRS) is expected at approximately 29%. Current cloud backlog growth at constant currencies is expected to slightly decelerate. SAP now expects constant currencies total revenue growth in 2026 to remain at similar levels as 2025 (previously expected to accelerate), with acceleration now expected in 2027. Software support revenue decline rate is expected to accelerate as customers transform to the cloud. Cloud revenue growth is expected to decelerate in Q2 due to quarter-specific positive effects in Q1. The outlook assumes a near-term de-escalation of the Middle East conflict and the imminent consolidation of Reltio. Currency impact at March 31 rates would reduce cloud revenue growth by 1.5pp and non-IFRS operating profit growth by 2.0pp for FY 2026.

SAP YoY Financials

Q1 2026 vs Q1 2025 · SEC filings Q1 2025 Q1 2026
$0$3.0B$6.0B$9.0B$9.0B$9.6BRevenue$6.6B$7.0BGross Profit$2.3B$2.7BOperating Income$1.8B$1.9BNet Income
$0$3.0B$6.0B$9.0BRevenueGross ProfitOperating IncomeNet Income

SAP Revenue by Segment

Applications, Technology & Support (ATS)
Cloud$6.0B+19.0%
SaaS/PaaS$5.9B+21.0%
Cloud ERP Suite$5.2B+23.0%
Software support$2.5B−11.0%
Software Support
Core Services
Services$1.0B−6.0%

SAP Revenue by Geography

EMEA$4.5B+11.0%
Americas$3.7B+1.0%
United States$2.9B−1.0%
Germany$1.5B+11.0%
Asia Pacific$1.4B+3.0%
Japan$388.0M−2.0%

Figures from SEC filings and company reports. Not investment advice.