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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
SAP 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, 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, Q1 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 |
|---|---|---|---|---|---|
| Q1 26 MISS | $1.92 | $1.72 | -10.42% | $9.56B | — |
| Q4 25 BEAT FY | $1.72 | $1.86 | +7.95% | $11.10B | — |
| FY Full Year | — | $7.05 | — | $42.18B | — |
| 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 | — |