Overview
- SAP’s cloud business delivered €6.28 billion in Q2 revenue with current cloud backlog at €22.9 billion and Cloud ERP Suite revenue up about 25 percent, driving total revenue to €9.88 billion.
- Profit and cash metrics improved as IFRS operating profit reached €2.64 billion, profit after tax rose to €2.21 billion, basic EPS climbed to €1.89, and free cash flow increased 27 percent to €3.00 billion.
- Traditional licensing lines continued to shrink with software license revenue down 32 percent to €131 million, software support down 8 percent to €2.44 billion, and services down 3 percent to €1.03 billion.
- SAP said completed deals including Dremio and Prior Labs and the earlier Reltio acquisition added capabilities and modestly increased backlog while creating a dilutive effect on its 2026 non‑IFRS operating profit due to higher R&D and stock‑based compensation.
- The company has repurchased more than 16.28 million shares for roughly €2.6 billion under a €10 billion buyback program, and investors showed a muted response to the quarter as the market weighed stronger cash generation against near‑term profit dilution.