SAP

SAP Q1 2026 Earnings

Reported Apr 28, 2026 at 6:00 AM ET · SEC Source

Q1 26 EPS

$1.72

MISS 10.42%

Est. $1.92

Q1 26 Revenue

$9.56B

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… Read more 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
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SAP YoY Financials

Q1 2026 vs Q1 2025, source: SEC Filings

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SAP Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 24 Q1 26
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SAP Revenue by Geography

With YoY comparisons, source: SEC Filings

Q4 24 Q1 26

“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.”

— Christian Klein, Q1 2026 Earnings Press Release