SAP Quarterly Statement Q1 2026

Rhea-AI Summary

SAP (NYSE: SAP) reported Q1 2026 results: current cloud backlog €21.9bn (+20% reported, +25% cc) and cloud revenue €5.96bn (+19% reported, +27% cc). Total revenue was €9.56bn (+6% reported, +12% cc). IFRS operating profit rose 17%; non-IFRS operating profit rose 17% (24% cc).

The company launched a €10bn buyback (first tranche ~€2.6bn completed), proposed a €2.50 dividend, and reiterated 2026 guidance including €25.8–26.2bn cloud revenue at constant currencies.

Positive

• Current cloud backlog €21.9bn (+25% constant currencies)
• Cloud revenue €5.96bn (+27% constant currencies)
• Non-IFRS operating profit guidance €11.9–12.3bn for 2026 (up 14–18% cc)
• Share repurchase program up to €10bn; first tranche ~€2.6bn completed

Negative

• Software licenses revenue declined 37% (to €116m)
• Free cash flow impacted by €408m litigation settlement payout
• IaaS revenue down 36% (to €66m)

Key Figures

Current cloud backlog: €21.9 billion Cloud revenue: €5,962 million Total revenue: €9,555 million +5 more

8 metrics

Current cloud backlog €21.9 billion Q1 2026, up 20% YoY and 25% at constant currencies

Cloud revenue €5,962 million Q1 2026, up 19% YoY and 27% at constant currencies

Total revenue €9,555 million Q1 2026, up 6% YoY and 12% at constant currencies

IFRS operating profit €2,741 million Q1 2026, up 17% year over year

Basic EPS (IFRS) €1.66 Q1 2026, up 9% versus €1.52 in Q1 2025

Share repurchases 16,280,097 shares at €161.16 First tranche of 2026 buyback, ~€2.6 billion volume by Apr 1, 2026

2026 cloud revenue guidance €25.8–26.2 billion 2026 outlook, up 23–25% at constant currencies vs 2025

2026 free cash flow guidance ≈€10 billion 2026 outlook, vs €8.24 billion in 2025

Market Reality Check

Price: $175.26 Vol: Volume 3,241,530 is sligh...

normal vol

$175.26 Last Close

Volume Volume 3,241,530 is slightly below 20-day average 3,349,617 (relative volume 0.97). normal

Technical Shares closed at 174.02, trading below the 200-day MA at 241.33 and well under the 52-week high of 313.28.

Peers on Argus

SAP slipped 1.37% while key peers were mixed: CRM -2.4%, SHOP -1.07%, UBER -2.73...

SAP slipped 1.37% while key peers were mixed: CRM -2.4%, SHOP -1.07%, UBER -2.73% versus modest gains in INTU (+0.78%) and NOW (+1.55%). With no peers in momentum scanners or same-day headlines, the move appears stock-specific rather than a sector-wide reaction.

Historical Context

5 past events · Latest: Apr 22 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Apr 22	AI partnership	Positive	-1.3%	Expanded Google Cloud partnership to deploy multi-agent AI across SAP CX.
Mar 31	Partner award	Positive	+1.7%	Syntax recognized with SAP Partner Award for customer transformation performance.
Mar 27	Acquisition announcement	Positive	-1.8%	Agreement to acquire Reltio to make SAP and non-SAP data AI-ready.
Feb 26	Customer win	Positive	+3.2%	FC Bayern migrated to RISE with SAP, adopting SAP Cloud ERP Private.
Feb 26	Annual reporting	Neutral	+3.2%	Filing of 2025 Form 20-F and publication of SAP Integrated Report 2025.

Pattern Detected

Recent AI, cloud and M&A announcements have seen mixed price reactions, with some positive strategic news sold off.

Recent Company History

Over the past few months, SAP news has focused on AI partnerships, cloud migrations and reporting milestones. On Feb 26, the FC Bayern RISE with SAP win and the 2025 Integrated Report and Form 20-F filing both coincided with gains of 3.24%. The planned acquisition of Reltio on Mar 27 and the multi-agent AI partnership with Google Cloud on Apr 22 each saw modest declines despite strategically positive framing. Against this backdrop, the Q1 2026 earnings release adds strong cloud growth and higher operating profit to an already active AI- and cloud-focused narrative.

Market Pulse Summary

This announcement highlights solid Q1 2026 performance, with double-digit cloud and operating profit...

Analysis

This announcement highlights solid Q1 2026 performance, with double-digit cloud and operating profit growth and a detailed outlook through 2027. The large current cloud backlog, new share repurchase program of up to €10 billion, and continued focus on Business AI underscore SAP’s strategic direction. At the same time, comments on expected cloud growth deceleration, FX headwinds, and evolving macro and geopolitical risks are key elements to track against future quarterly results.

Key Terms

saas, paas, iaas, free cash flow, +4 more

8 terms

saas technical

"SaaS/PaaS | 5,896 | 4,890 | 21 | | 5,896 | 4,890 | 21 | 28"

SaaS, or Software as a Service, is a way of delivering computer programs over the internet, allowing users to access and use them through a web browser without needing to install or maintain the software themselves. For investors, it highlights a business model where companies generate recurring revenue by providing ongoing access to their software, often leading to predictable income and growth potential.

paas technical

"SaaS/PaaS | 5,896 | 4,890 | 21 | | 5,896 | 4,890 | 21 | 28"

Platform as a Service (PaaS) is a cloud offering that provides developers with ready-made tools, computing power, and hosting so they can build, test, and run software without buying or managing the underlying servers and software stack. For investors, PaaS matters because it can drive predictable subscription revenue, lower customer costs of adoption, and scale rapidly — think of renting a fully equipped kitchen that lets chefs open more restaurants faster without building each kitchen from scratch.

iaas technical

"IaaS 2 | 66 | 104 | –36 | | 66 | 104 | –36 | –32"

Infrastructure as a Service (IaaS) is a cloud computing model that lets companies rent computing resources—like servers, storage, and network capacity—on demand instead of owning hardware. For investors, IaaS matters because it enables faster scaling, lower upfront costs, and predictable operating expenses for businesses, which can boost growth potential and margins; think of it as paying to use a utility grid rather than building your own power plant.

free cash flow financial

"Net cash flows from operating activities | 3,513 | 3,780 | –7 Free cash flow | | 3,248 | 3,583 | –9"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

share repurchase program financial

"In January 2026, SAP announced a new share repurchase program with an aggregate volume of up to €10 billion"

A share repurchase program is when a company buys back its own shares from the marketplace. This reduces the total number of shares available, which can increase the value of each remaining share and signal confidence in the company's prospects. For investors, it often suggests that the company believes its stock is undervalued or that it has extra cash to return to shareholders.

dividend financial

"SAP proposed a dividend of €2.50 per share for fiscal year 2025 representing a year-over-year increase of 6.4%"

A dividend is a payment that a company gives to its shareholders, usually from its profits. It’s like a bonus or reward for owning the company's stock, and it can provide a steady income stream for investors. Companies pay dividends to share their success with the people who own their stock.

form 20-f regulatory

"SAP announced that it has filed the SAP Annual Report on Form 20-F for the year ended December 31, 2025"

Form 20-F is the standardized annual disclosure that non-U.S. companies must file with the U.S. securities regulator when their shares are traded in the U.S.; it contains audited financial statements, a plain-language description of the business, management discussion, governance details and key risk factors. It matters to investors because it provides a consistent, comparable company “report card” and rulebook, helping buyers assess financial health, governance and risks before investing.

operating cash flow financial

"Operating cash flow and free cash flow were impacted by a payout of €408 million"

Operating cash flow is the amount of money a company earns from its main business activities, like selling products or services. It shows how well the company can generate cash to pay bills, invest in growth, or return money to shareholders. This figure helps investors understand if the company’s core operations are healthy and sustainable.

AI-generated analysis. Not financial advice.

WALLDORF, Germany, April 23, 2026 /PRNewswire/ -- SAP SE (NYSE: SAP) announced today its financial results for the first quarter ended March 31, 2026.

• Current cloud backlog of €21.9 billion, up 20% and up 25% at constant currencies
• Cloud revenue up 19% and up 27% at constant currencies
• Cloud ERP Suite revenue up 23% and up 30% at constant currencies
• Total revenue up 6% and up 12% at constant currencies
• IFRS operating profit up 17%, non-IFRS operating profit up 17% and up 24% at constant currencies

Christian Klein, CEO:

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.

Dominik Asam, CFO:

We delivered a solid start to the year, supported by disciplined execution in revenue and profitability. At the same time, we have remained focused on managing our cost base and maintaining profitability as we navigate an increasingly complex and uncertain macroeconomic and geopolitical environment.

Group Results at a Glance

First quarter 2026

	IFRS				Non-IFRS1
€ million, unless otherwise stated	Q1 2026	Q1 2025	∆ in %		Q1 2026	Q1 2025	∆ in %	∆ in % const. curr.
Current cloud backlog					21,932	18,202	20	25
SaaS/PaaS	5,896	4,890	21		5,896	4,890	21	28
Thereof Cloud ERP Suite2	5,214	4,251	23		5,214	4,251	23	30
Thereof Extension Suite2	681	639	7		681	639	7	12
IaaS2	66	104	–36		66	104	–36	–32
Cloud revenue	5,962	4,993	19		5,962	4,993	19	27
Software licenses revenue	116	183	–37		116	183	–37	–33
Software support revenue	2,469	2,761	–11		2,469	2,761	–11	–6
Cloud and software revenue	8,548	7,938	8		8,548	7,938	8	14
Services Revenue	1,007	1,075	–6		1,007	1,075	–6	–1
Total revenue	9,555	9,013	6		9,555	9,013	6	12
Cloud gross profit	4,450	3,720	20		4,481	3,745	20	26
Cloud gross margin (in %)	74.6	74.5	0.1pp		75.2	75.0	0.2pp	–0.1pp
Gross profit	6,973	6,607	6		7,013	6,632	6	12
Gross margin (in %)	73.0	73.3	–0.3pp		73.4	73.6	–0.2pp	–0.3pp
Operating profit (loss)	2,741	2,333	17		2,867	2,455	17	24
Operating margin (in %)	28.7	25.9	2.8pp		30.0	27.2	2.8pp	2.9pp
Profit (loss) after tax	1,946	1,796	8		2,002	1,681	19
Earnings per share - Basic (in €)	1.66	1.52	9		1.72	1.44	20
Net cash flows from operating activities	3,513	3,780	–7
Free cash flow					3,248	3,583	–9
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

Financial Results

Cloud revenue growth was positively impacted by several quarter-specific effects, contributing to an expected deceleration of cloud revenue growth in the second quarter.

IFRS and non-IFRS operating profit were supported by a decline of share-based compensation expenses of €135 million.

Operating cash flow and free cash flow were impacted by a payout of €408 million related to the settlement of the Teradata litigation case.  

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 April 1, 2026, the first tranche of the program was completed. By that time, 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

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 and the imminent consolidation of Reltio.

For 2026, 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.
• €11.9 – 12.3 billion non-IFRS operating profit at constant currencies (2025: €10.42 billion), up 14% to 18% 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%)^[1].
• 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 and to accelerate in 2027. The previous outlook assumed constant currencies total revenue growth to accelerate through 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.

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 March 31, 2026 Rates Apply for 2026

In percentage points	Q2 2026	FY 2026
Cloud revenue growth	-1.5pp	-1.5pp
Cloud and software revenue growth	-1.0pp	-1.5pp
Operating profit growth (non-IFRS)	-2.0pp	-2.0pp

This includes an exchange rate of 1.15 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 first quarter, customers around the globe continued to choose the "RISE with SAP" journey. These customers included: AIR LIQUIDE, Aptiv, Bristol-Myers Squibb, CMS Energy, ConocoPhillips, Diehl Group, Garuda Indonesia, Hyundai Motor EU, ITU (International Telecommunication Union), Nutresa, PayPal, PinkRoccade Local Government, Schweiter Technologies, Thales, Wella.

Adesso, Japan Display, OAKBERRY chose "SAP GROW".

Carl Zeiss, Helvetia Baloise Group, Hochland, SKF Group chose SAP's AI and data solutions.

Key customer wins across SAP's solution portfolio included: Apollo Tyres, Compass Group, Government Service Insurance System, Grupo Comercial Chedraui, Liebherr, Migros, Red Bull, Transport for London.

Alibaba Cloud Computing, ExxonMobil, Fonterra, Norfolk Southern, Samsung Electro-Mechanics, VEKA, Volaris went live on SAP solutions in the first quarter.

In the first quarter, SAP's cloud revenue performance was particularly strong in APJ and EMEA and solid in the Americas region. Brazil, France, Germany, India, South Korea, Switzerland and the United Kingdom had outstanding performance, while the U.S. were particularly strong.

On February 19, SAP proposed a dividend of €2.50 per share for fiscal year 2025 representing a year-over-year increase of 6.4% compared to the regular dividend paid for fiscal year 2024. The dividend is subject to shareholder approval at the upcoming AGM scheduled for May 5, 2026.

On February 26, SAP announced that it has filed the SAP Annual Report on Form 20-F for the year ended December 31, 2025, with the U.S. Securities and Exchange Commission (SEC) and published its Integrated Report 2025.

On March 2, SAP announced the creation of the new Customer Value Group, bringing together the Customer Success and Customer Services & Delivery organizations, effective April 1. The Customer Value Group will be led by Thomas Saueressig, whose role expands to Chief Customer Officer. In this capacity, he will oversee the full customer journey, aligning selling, delivery, services and support, driving adoption, renewal and expansion of SAP's cloud and AI-powered solutions.

On March 27, SAP and Reltio Inc. announced that SAP has agreed to acquire Reltio, a leading master data management (MDM) software provider, to help customers make their SAP and non-SAP enterprise data AI-ready.

Additional Information

This quarterly statement and all information therein are preliminary and unaudited. Due to rounding, numbers may not add up precisely. The Q1 2026 Quarterly Statement can be downloaded from: https://www.sap.com/investors/sap-2026-q1-statement

SAP Annual General Meeting of Shareholders

The Annual General Meeting of Shareholders will take place on May 5, 2026, as a virtual event. The whole event will be webcast on the Company's website and online voting options will be available for shareholders. Further details can be found at https://www.sap.com/agm .

Financial Analyst and Investor Conference

SAP will hold a financial analyst event on Wednesday, May 13^th, 2026, in conjunction with SAP Sapphire & ASUG Annual Conference Orlando.

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, April 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.

For more information, financial community only:

Alexandra Steiger, +49 (6227) 7-767336, investor@sap.com, CET

Follow SAP Investor Relations on LinkedIn at SAP Investor Relations.

For more information, press only:

Marcus Winkler, +46 (6227) 7-67497, marcus.winkler@sap.com, CET

Daniel Reinhardt +49 (6227) 7-40201, daniel.reinhardt@sap.com, CET

For customers interested in learning more about SAP products:

Global Customer Center: +49 180 534-34-24

United States Only: +1 (800) 872-1SAP (+1-800-872-1727)

Note to editors:

To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels.

This document contains forward-looking statements, which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP's 2025 Annual Report on Form 20-F.

© 2026 SAP SE. All rights reserved.

SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see https://www.sap.com/copyright for additional trademark information and notices.

^[1] 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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SOURCE SAP SE

FAQ

What were SAP's key Q1 2026 cloud metrics (SAP)?

SAP reported a current cloud backlog of €21.9bn and cloud revenue of €5.96bn. According to the company, backlog rose 25% and cloud revenue rose 27% at constant currencies, driving stronger cloud profitability in the quarter.

How did SAP's total revenue and operating profit perform in Q1 2026 (SAP)?

Total revenue was €9.56bn and IFRS operating profit was €2.74bn. According to the company, total revenue rose 6% reported (12% cc) and operating profit increased 17% year-over-year.

What is the scope and progress of SAP's €10bn share repurchase program (SAP)?

SAP launched a €10bn repurchase program through Dec 31, 2027; first tranche repurchased ~16.28m shares for ~€2.6bn. According to the company, the initial tranche was completed as of April 1, 2026.

How did Q1 2026 cash flow and one-off items affect SAP's free cash flow (SAP)?

Free cash flow was reduced partly due to a €408m payout for a litigation settlement. According to the company, operating cash flow and free cash flow were negatively impacted by that settlement in Q1.

What guidance did SAP provide for full-year 2026 cloud revenue and profit (SAP)?

SAP expects €25.8–26.2bn cloud revenue and €11.9–12.3bn non-IFRS operating profit for 2026 at constant currencies. According to the company, these figures assume near-term de-escalation in the Middle East and Reltio consolidation.

Will SAP pay a dividend for fiscal 2025 and when is the AGM voting (SAP)?

SAP proposed a €2.50 per share dividend for fiscal 2025, subject to shareholder approval. According to the company, the Annual General Meeting is scheduled for May 5, 2026, where the dividend will be voted on.