WALLDORF, Germany, July 23, 2026 /PRNewswire/ — SAP SE (NYSE: SAP) announced today its financial results for the second quarter ended June 30, 2026.
Current cloud backlog of €22.9 billion, up 27% and up 26% at constant currenciesCloud revenue up 22% and up 24% at constant currenciesCloud ERP Suite revenue up 25% and up 27% at constant currenciesTotal revenue up 9% and up 11% at constant currenciesIFRS operating profit up 8%, non-IFRS operating profit up 7% and up 9% at constant currencies2026 non-IFRS operating profit outlook updated to reflect dilutive impact from Dremio and Prior Labs acquisitions
Christian Klein, CEO:
We delivered another quarter of strong current cloud backlog growth, up 26% at constant currencies. This performance is underpinned by our Autonomous Enterprise strategy with strong momentum across our Autonomous Suite as well as our Business AI Platform. Customers are choosing SAP to enable accurate and compliant AI outcomes grounded in their most critical business processes and data.
Dominik Asam, CFO:
Q2 was another strong quarter, highlighted by sustained current cloud backlog and free cash flow growth against a volatile macroeconomic backdrop. These results reflect our disciplined execution and our ability to deliver against our operating objectives. As part of that execution, we aggressively drive our own transformation into an Autonomous Enterprise, leveraging AI to boost both effectiveness and efficiency at the same time.
Group Results at a Glance
Second quarter 2026
IFRS
Non-IFRS1
€ million, unless otherwise stated
Q2 2026
Q2 2025
∆ in %
Q2 2026
Q2 2025
∆ in %
∆ in % const. curr.
Current cloud backlog
22,929
18,052
27
26
SaaS/PaaS2
6,216
5,045
23
6,216
5,045
23
25
Thereof Cloud ERP Suite2
5,525
4,422
25
5,525
4,422
25
27
Thereof Extension Suite2
692
624
11
692
624
11
12
IaaS2
65
85
–23
65
85
–23
–22
Cloud revenue
6,281
5,130
22
6,281
5,130
22
24
Software licenses revenue
131
194
–32
131
194
–32
–32
Software support revenue
2,439
2,642
–8
2,439
2,642
–8
–7
Cloud and software revenue
8,851
7,966
11
8,851
7,966
11
13
Services Revenue
1,027
1,061
–3
1,027
1,061
–3
–2
Total revenue
9,878
9,027
9
9,878
9,027
9
11
Cloud gross profit
4,664
3,833
22
4,687
3,856
22
23
Cloud gross margin (in %)
74.3
74.7
–0.5pp
74.6
75.2
–0.6pp
–0.7pp
Gross profit
7,228
6,620
9
7,250
6,643
9
11
Gross margin (in %)
73.2
73.3
–0.2pp
73.4
73.6
–0.2pp
–0.2pp
Operating profit (loss)
2,643
2,456
8
2,743
2,568
7
9
Operating margin (in %)
26.8
27.2
–0.5pp
27.8
28.5
–0.7pp
–0.4pp
Profit (loss) after tax
2,209
1,749
26
1,828
1,747
5
Earnings per share – Basic (in €)
1.89
1.45
30
1.59
1.50
6
Net cash flows from operating activities
3,153
2,577
22
Free cash flow
3,002
2,357
27
1 For a breakdown of the individual adjustments see table Non-IFRS Operating Expense Adjustments by Functional Areas in this Quarterly Statement.
2 For a definition of Cloud ERP Suite and Extension Suite, see the Performance Management System chapter in the 2025 Integrated Report. For an Explanation of IaaS, SaaS, and PaaS, see the Notes to the Consolidated Financial Statements of the Integrated Report 2025, Note (A.1).
Six months ended June 2026
IFRS
Non-IFRS1
€ million, unless otherwise stated
Q1–Q2
2026
Q1-Q2
2025
∆ in %
Q1–Q2
2026
Q1-Q2
2025
∆ in %
∆ in % const. curr.
Current cloud backlog
22,929
18,052
27
26
SaaS/PaaS2
12,112
9,935
22
12,112
9,935
22
27
Thereof Cloud ERP Suite2
10,739
8,673
24
10,739
8,673
24
29
Thereof Extension Suite2
1,373
1,262
9
1,373
1,262
9
12
IaaS2
131
188
–30
131
188
–30
–28
Cloud revenue
12,244
10,124
21
12,244
10,124
21
26
Software licenses revenue
247
377
–34
247
377
–34
–33
Software support revenue
4,908
5,403
–9
4,908
5,403
–9
–6
Cloud and software revenue
17,399
15,904
9
17,399
15,904
9
13
Services Revenue
2,033
2,136
–5
2,033
2,136
–5
–2
Total revenue
19,432
18,040
8
19,432
18,040
8
11
Cloud gross profit
9,114
7,553
21
9,168
7,601
21
25
Cloud gross margin (in %)
74.4
74.6
–0.2pp
74.9
75.1
–0.2pp
–0.4pp
Gross profit
14,201
13,226
7
14,263
13,275
7
11
Gross margin (in %)
73.1
73.3
–0.2pp
73.4
73.6
–0.2pp
–0.3pp
Operating profit (loss)
5,383
4,789
12
5,609
5,024
12
16
Operating margin (in %)
27.7
26.5
1.2pp
28.9
27.8
1.0pp
1.2pp
Profit (loss) after tax
4,155
3,545
17
3,830
3,428
12
Earnings per share – Basic (in €)
3.55
2.98
19
3.31
2.94
12
Net cash flows from operating activities
6,666
6,357
5
Free cash flow
6,250
5,939
5
1 For a breakdown of the individual adjustments see table Non-IFRS Operating Expense Adjustments by Functional Areas in this Quarterly Statement.
2 For a definition of Cloud ERP Suite and Extension Suite, see the Performance Management System chapter in the 2025 Integrated Report. For an Explanation of IaaS, SaaS, and PaaS, see the Notes to the Consolidated Financial Statements of the Integrated Report 2025, Note (A.1).
Supplementary Information[1]
Financial Results
Current cloud backlog growth benefited from the first-time inclusion of Reltio, which contributed less than 1 percentage point to the constant currencies growth rate.
The sequential decline in both IFRS and non-IFRS operating profit growth is mainly caused by the sequential deceleration of cloud- and total revenue growth, an unusually low stock-based compensation expense in the first quarter, accelerated investments into research and development as well as the dilutive impact of the Reltio acquisition.
IFRS effective tax rate was 26.5% and non-IFRS effective tax rate was 30.8%. The IFRS effective tax rate is lower than the non-IFRS effective tax rate due to tax benefits from tax-exempt income.
Share Repurchase Program
In January 2026, SAP announced a new share repurchase program with an aggregate volume of up to €10 billion and a term until December 31, 2027. As of June 30, 2026, SAP had repurchased 16,280,097 shares at an average price of €161.16 resulting in a purchased volume of approximately €2.6 billion under the program.
Outlook
Financial Outlook
For 2026, SAP is updating its non-IFRS operating profit outlook to reflect the dilutive impact of the Dremio and Prior Labs acquisitions closed in July, which is projected to be in excess of €100 million. SAP now expects:
€11.8 – 12.2 billion non-IFRS operating profit at constant currencies (2025: €10.42 billion), up 13% to 17% at constant currencies. The previous outlook was €11.9 – 12.3 billion.
SAP continues to expect:
€25.8 – 26.2 billion cloud revenue at constant currencies (2025: €21.02 billion), up 23% to 25% at constant currencies.€36.3 – 36.8 billion cloud and software revenue at constant currencies (2025: €32.54 billion), up 12% to 13% at constant currencies.Approximately €10 billion free cash flow at actual currencies (2025: €8.24 billion).An effective tax rate (non-IFRS) of approximately 29% (2025: 30.5%)[2].Constant currencies current cloud backlog growth to slightly decelerate (2025: 25%).
SAP further expects:
Constant currencies total revenue growth in 2026 to remain at similar levels as in 2025 (10.6%) and to accelerate in 2027.Total operating expenses to grow at 80% to 90% of total revenue growth in 2027.Constant currencies software support revenue decline rate to accelerate in the coming years as a consequence of an acceleration of customers transforming to the cloud.
SAP’s financial outlook for the full-year 2026 is based on the assumption of a near-term de-escalation of the conflict in the Middle East. Other impacts due to the evolving situation in the Middle East are currently unknown and could potentially subject our business to materially adverse consequences should the situation continue or even further escalate beyond its current scope.
While SAP’s 2026 financial outlook for the income statement parameters is at constant currencies (including an average exchange rate of 1.13 USD per EUR), actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the company progresses through the year, as reflected in the table below.
Currency Impact Assuming June 30, 2026 Rates Apply for 2026
In percentage points
Q3 2026
FY 2026
Cloud revenue growth
1.5pp
-1.5pp
Cloud and software revenue growth
1.0pp
-1.5pp
Operating profit growth (non-IFRS)
0.0pp
-2.0pp
This includes an exchange rate of 1.14 USD per EUR.
Non-Financial Outlook
For 2026, SAP continues to expect:
Cloud Customer Satisfaction (Cloud CSAT) to be in a range of 75% to 76% (2025: 75%).The Employee Engagement Index to be in a range of 74% to 78% (2025: 76%).The Business Health Culture Index (BHCI) to be in a range of 80% to 82% (2025: 81%).To steadily decrease carbon emissions across the relevant value chain (2025: 3.6 Mt).
Business Highlights
In the second quarter, customers around the globe continued to choose the “RISE with SAP” journey. These customers included: ACCIONA, AIRBUS, City of Osnabrueck, Electrolux, Eli Lilly, Gilead Sciences, HARTING, Hindustan Zinc, The Humboldt University of Berlin, JET, Ørsted, Samsonite Group, Shell, The Shoprite Group, SIGNAL IDUNA, SPAR (CH), Sun Pharma, Vonovia.
Gooroo Crédito, Modular Data Centers, Parloa, Tarrant County, Techem chose “SAP GROW”.
AMADEUS, BBC, Booking.com, GOL, Oki Electric Industry, PwC, University Hospital Zurich, Vale chose SAP’s AI and data solutions.
Key customer wins across SAP’s solution portfolio included: Birlasoft, Capgemini, Haier Group, KaDeWe.
Döhler, FANUC Europe, Fonterra, Natura Cosméticos, SABESP, TEAG went live on SAP solutions in the second quarter.
In the second quarter, SAP’s cloud revenue performance was particularly strong in APJ and EMEA and solid in the Americas region. Brazil, France, Germany, Italy, India, South Korea and Spain had outstanding performance, while Australia, Singapore and the U.S. were particularly strong.
On April 10, SAP announced that it has extended the contract of Gina Vargiu-Breuer, Chief People Officer of SAP SE, for another three years until January 31, 2030.
On April 22, SAP and Google Cloud announced a new partnership that will help marketers put AI agents to work at scale.
On May 4, SAP and Dremio announced that SAP has agreed to acquire Dremio, an open, high-performance data lakehouse platform built to accelerate agentic AI and expand SAP Business Data Cloud’s ability to combine SAP and non-SAP data to more effectively run analytical and AI workloads in real time. The acquisition was completed on July 6.
In addition, SAP and Prior Labs, the pioneer of Tabular Foundation Models (TFMs), announced that they have entered into a definitive agreement for SAP to purchase Prior Labs, accelerating SAP’s success in TFMs that started with SAP-RPT-1, and bringing one of the world’s leading TFM research teams into the SAP family. The acquisition was completed on July 16.
On May 5, SAP held its Annual General Meetings of Shareholders, with all agenda items achieving strong shareholder support.
On May 7, SAP announced that it has completed the acquisition of Reltio, a leading master data management (MDM) software provider.
On May 12, SAP introduced the Autonomous Enterprise to help enhance the world’s most critical business workflows, so that humans and AI work together to meet the accelerating demands of global business profitably, strategically and safely. In addition, SAP also announced strategic partnerships with Anthropic, Amazon Web Services, n8n, NVIDIA, Parloa, Palantir and Accenture.
On May 28, SAP rated A1 (stable) by Moody’s and A+ (stable) by S&P Global, successfully completed a Eurobond transaction with a total volume of €3.5 billion across four tranches with tenors of two, three, five and seven years. The net proceeds from this transaction are used for general corporate purposes, including (re)financing of recently announced acquisitions.
On July 9, SAP announced that it welcomes the European Commission’s decision to conclude its competition investigation into certain aspects of SAP’s on-premise maintenance and support practices through a commitment decision, following a constructive and cooperative dialogue.
Additional Information
This quarterly statement and all information therein are preliminary and unaudited. Due to rounding, numbers may not add up precisely. The Q2 2026 Quarterly Statement can be downloaded from: https://www.sap.com/investors/sap-2026-q2-statement.
SAP Performance Measures
For more information about our key growth metrics and performance measures, their calculation, their usefulness, and their limitations, please refer to the following document on our Investor Relations website: https://www.sap.com/investors/en/financial-documents-and-events/reporting-framework.html.
Webcast
SAP senior management will host a financial analyst conference call on Thursday, July 23rd at 11:00 PM (CEST) / 10:00 PM (BST) / 5:00 PM (EDT) / 2:00 PM (PDT). The conference will be webcast on the Company’s website at https://www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the first quarter results can be found at https://www.sap.com/investor
About SAP
As a global leader in enterprise applications and business AI, SAP (NYSE: SAP) stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit www.sap.com.
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[1] The Q2 2026 results were also impacted by other effects. For details, please refer to the disclosures on page 22 of this document.
[2] The effective tax rate (non-IFRS) is a non-IFRS financial measure and is presented for supplemental informational purposes only. We do not provide an outlook for the effective tax rate (IFRS) due to the uncertainty and potential variability of gains and losses associated with equity securities, which are reconciling items between the two effective tax rates (non-IFRS and IFRS). These items cannot be provided without unreasonable efforts but could have a significant impact on our future effective tax rate (IFRS).
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