Overview
- Q3 results showed total revenue above €10 billion for the first time, cloud revenue up about 26 percent, cloud backlog at constant currencies up roughly 26 percent to about €24.14 billion, and non‑IFRS operating profit rising about 18 percent to €3.03 billion.
- Free cash flow improved significantly, rising about 36 percent to €1.72 billion, and operating margin widened, signaling better profitability alongside revenue growth.
- SAP said part of the cloud growth came from customers returning from financial distress and it added new cloud customers including AstraZeneca, Infineon and Henkel.
- The company moved its 2026 subscription/cloud revenue expectation toward the top of its €25.8 billion–€26.2 billion range while keeping its full‑year operating profit guidance unchanged.
- The quarter strengthens SAP’s shift from one‑time licence sales to recurring cloud subscriptions, boosts near‑term revenue visibility via a larger backlog, and leaves investors watching backlog conversion and full‑year delivery next.