SAP (NYSE: SAP) Reports Robust Q3 Earnings Driven by Cloud and AI Growth

• Strong Financial Performance: SAP (NYSE: SAP) exceeded Q3 earnings per share and revenue estimates, with revenue reaching $11.53 billion and EPS at $2.12.
• Accelerated Cloud and AI Expansion: The company saw significant growth in cloud revenue (26%) and Cloud ERP Suite revenue (29%), driven by its expanding cloud computing and AI product offerings.
• Healthy Backlog and Profitability: A current cloud backlog of €24.1 billion and an 18% rise in operating profit underscore SAP's future revenue potential and effective cost control.

SAP (NYSE: SAP), a leading provider of enterprise software, reported its latest financial results on October 21, 2026. The company, known for its business software that helps organizations manage operations, is significantly expanding its cloud computing and artificial intelligence (AI) products. Earnings per share were $2.12, surpassing the analyst estimate of $2.03. Total revenue reached $11.53 billion, outperforming the estimated $11.38 billion.

For the first time, third-quarter revenue exceeded €10 billion, marking a substantial 13% increase from the previous year, as reported by PR Newswire. This strong Q3 revenue growth was primarily fueled by cloud growth, with cloud revenue rising 26%. Specifically, Cloud ERP Suite revenue, a key area for ERP solutions, saw an impressive 29% growth. It's important to note that these euro figures are directly from SAP’s official quarterly statement, while the earnings estimates mentioned earlier are presented in dollars.

The company's current cloud backlog reached an impressive €24.1 billion, demonstrating robust future potential. This represents a 28% increase, or 26% at constant currencies, which effectively removes the impact of exchange-rate fluctuations. This backlog signifies contracted cloud revenue that SAP anticipates recognizing over time. As highlighted by 24/7 Wall Street, a critical factor for SAP's continued success will be whether its growing number of AI-related contracts successfully convert this substantial backlog into recognized reported revenue.

Both IFRS and non-IFRS operating profit saw a significant rise of 18%. Notably, non-IFRS operating profit surpassed €3 billion for the first time, indicating strong profitability. Non-IFRS figures are adjusted to exclude certain accounting items, which means they can differ from standard IFRS results. SAP attributes these substantial profit gains to its consistent cloud growth and effective cost control measures.