Q2 26 EPS
$1.72
MISS 10.37%
Est. $1.92
Q2 26 Revenue
$9.56B
BEAT +0.00%
Est. $9.55B
Did SAP Beat Earnings? Q2 2026 Results
SAP SE posted a solid second quarter of fiscal 2026, reporting earnings per share of $1.72 on revenue of $9.55 billion, as accelerating cloud adoption continued to reshape the German enterprise software giant's business mix. The single most consequen… Read more SAP SE posted a solid second quarter of fiscal 2026, reporting earnings per share of $1.72 on revenue of $9.55 billion, as accelerating cloud adoption continued to reshape the German enterprise software giant's business mix. The single most consequential driver was cloud momentum: cloud revenue climbed 27% at constant currencies to $5.96 billion, with the Cloud ERP Suite alone rising 30% to $5.21 billion, as customers steadily migrated from legacy on-premise deployments to SAP's cloud platform. That shift came at the expense of older revenue lines, with software license revenue falling 37% to $116 million and software support revenue declining 11% to $2.47 billion, a structural transition SAP expects to intensify in coming years. Non-IFRS operating profit rose 24% at constant currencies to $2.87 billion, lifting the non-IFRS operating margin by 2.9 percentage points to 30.0%. Looking ahead, SAP reaffirmed its full-year 2026 outlook, targeting cloud revenue of $25.80 to $26.20 billion at constant currencies and approximately $10.00 billion in free cash flow, though management cautioned that cloud revenue growth is expected to decelerate in the coming quarter.
Key Takeaways
- • Cloud ERP Suite revenue up 30% at constant currencies driven by customer cloud migration
- • Current cloud backlog growth of 25% at constant currencies indicating strong future revenue visibility
- • Business AI momentum supporting customer expansion across Suite and AI solutions
- • Share-based compensation expenses declined €135 million supporting operating profit
- • Particularly strong cloud performance in APJ, EMEA, and the Americas
SAP Forward Guidance & Outlook
SAP reaffirmed its full-year 2026 financial 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 (up 12%–13%), non-IFRS operating profit of €11.9–12.3 billion (up 14%–18%), approximately €10 billion free cash flow, and a non-IFRS effective tax rate of approximately 29%. Current cloud backlog growth at constant currencies is expected to slightly decelerate from 2025's 25%. The company slightly moderated its medium-term revenue trajectory, now expecting constant currency total revenue growth in 2026 to remain at 2025 levels (previously expected to accelerate), with acceleration deferred to 2027. Cloud revenue growth is expected to decelerate in Q2 due to quarter-specific effects that benefited Q1. The outlook assumes a near-term de-escalation in the Middle East and imminent consolidation of Reltio. Currency headwinds of approximately 1.5pp on cloud revenue and 2.0pp on non-IFRS operating profit are expected for full-year 2026 at March 31 exchange rates.
SAP YoY Financials
Q2 2026 vs Q2 2025, source: SEC Filings
SAP Revenue by Segment
With YoY comparisons, source: SEC Filings
SAP Revenue by Geography
With YoY comparisons, source: SEC Filings
“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, Q2 2026 Earnings Press Release
SAP Earnings Trends
SAP vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
SAP EPS Trend
Earnings per share: estimate vs actual
SAP Revenue Trend
Quarterly revenue: estimate vs actual
SAP Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q2 26 MISS | $1.92 | $1.72 | -10.37% | $9.56B | +0.00% |
| Q1 26 | $1.92 | — | — | — | — |
| Q3 25 MISS | $1.74 | $1.59 | -8.67% | $9.08B | -0.11% |
| Q2 25 MISS | $1.67 | $1.50 | -10.41% | $9.03B | -0.81% |
| Q1 25 BEAT | $1.44 | $1.44 | +0.18% | $9.01B | -0.67% |
| Q4 24 MISS FY | $1.49 | $1.40 | -6.34% | $9.38B | +2.56% |
| FY Full Year | — | $4.53 | — | $34.18B | — |