SAP SE reported strong third-quarter 2026 earnings, with continued cloud revenue growth and higher operating profit supporting the German enterprise software maker's financial performance. The company exceeded €10 billion in quarterly revenue for the first time, marking a significant milestone in its subscription-driven cloud business. SAP shares gained during regular trading on the results and extended their advance in after-hours activity following the earnings announcement.

SAP climbed 1.64% to $232.73 during the regular session, adding $3.75 to its previous closing price. After the closing bell, the stock advanced a further 1.01% to $235.09. The post-earnings gains followed continued growth across the company's cloud business and stronger quarterly profitability, the two areas that anchored the third-quarter report. As one of the world's largest enterprise application software vendors, SAP's quarterly figures also offer a broad window into how large organizations are advancing their shift to cloud-based systems.

Cloud Revenue Jumps 26% as Backlog Reaches €24.1 Billion

SAP reported a 26% increase in cloud revenue during the third quarter, reflecting continued demand for its enterprise software services. At constant currencies, cloud revenue grew 25%, underscoring expansion across the subscription-based business. Constant-currency comparisons strip out exchange-rate effects, showing growth independent of currency swings. Cloud ERP Suite revenue increased 29%, supported by companies moving business operations onto cloud platforms.

The company's current cloud backlog reached €24.1 billion, representing a 28% increase from the previous year. At constant currencies, backlog growth came in at 26%, a reflection of continued demand for contracted cloud services. This backlog provides SAP with visibility into future revenue from existing customer commitments.

SAP continues to expand its cloud portfolio as businesses across industries modernize their financial, operational, and data management systems and move workloads to hosted environments. The company's cloud ERP products serve organizations seeking integrated platforms for managing daily operations. Its Business AI services form part of a broader strategy to automate enterprise processes and embed artificial intelligence into routine workflows. That subscription-driven model reflects a wider shift across the enterprise software industry, where vendors increasingly rely on recurring cloud revenue rather than one-time license sales.

Q3 Revenue Exceeds €10 Billion as Operating Profit Rises 18%

SAP generated €10.27 billion in total third-quarter revenue, an increase of 13% from the previous year. At constant currencies, total revenue rose 12%, supported by continued expansion of the cloud business. The result marked the first time the company surpassed €10 billion in revenue within a single quarter.

IFRS operating profit increased 18% to €2.93 billion during the quarter, reflecting stronger business performance. Non-IFRS operating profit rose by the same margin, reaching €3.03 billion for the first time. SAP reports both measures, with non-IFRS figures adjusted to exclude certain items for an underlying view of operating performance. SAP attributed the profitability gains to revenue growth, operating scale, and disciplined cost management.

Chief Executive Christian Klein highlighted customer adoption of SAP's Autonomous Enterprise strategy during the quarterly earnings announcement. The strategy combines cloud infrastructure, business data, and artificial intelligence to support enterprise operations. Chief Financial Officer Dominik Asam, meanwhile, emphasized the company's ability to expand revenue and operating profit at the same time.

SAP Targets Upper End of 2026 Cloud Revenue Range

Following the third-quarter performance, SAP updated its full-year 2026 cloud revenue outlook. The company now expects cloud revenue near the upper end of its €25.8 billion to €26.2 billion range. That forecast represents expected constant-currency growth of 23% to 25% compared with 2025.

SAP also expects cloud and revenue near the upper end of its €36.3 billion to €36.8 billion range. Beyond the updated targets, the company maintained its broader strategic focus on cloud migration, business applications, and AI-supported enterprise services. Those areas remain central to SAP's efforts to expand recurring revenue and support customer transformation over the longer term. Where final results land within those ranges will be determined by fourth-quarter performance, making the company's full-year report the next checkpoint for its cloud transition.

Taken together, the quarterly results showed continued growth in cloud subscriptions alongside higher operating earnings. SAP's expanding backlog further highlighted the role of long-term customer contracts in the company's business model. Combined, these developments strengthened SAP's third-quarter performance and formed the foundation for its updated full-year revenue expectations.