Overview
- SAP beat first-quarter expectations as cloud revenue rose 19% to €5.96 billion and non-IFRS operating profit increased to €2.87 billion.
- The company kept its 2026 cloud growth target of 23% to 25% and said meeting it depends on de-escalation in the Middle East.
- Executives said total revenue growth should match 2025 levels in 2026 and then accelerate in 2027.
- Current cloud backlog reached €21.9 billion, up 25% at constant currencies, which reflects signed contracts that have not yet been booked as revenue.
- Management highlighted SAP Business AI and new AI-driven ERP migration tools as growth drivers as analysts questioned how the pending Reltio purchase and third-party data-extraction tools could shape guidance and customer migration plans.