Overview
- SAP reported second-quarter revenue of €9.88 billion and a 22% rise in cloud revenue, with adjusted operating profit of €2.74 billion and net profit of €2.21 billion.
- The company said its Current Cloud Backlog — contractually committed cloud revenue for the next 12 months — rose 27% to €22.9 billion, showing stronger subscription momentum.
- SAP narrowed its 2026 adjusted operating-profit growth guidance to 13–17% and cut full-year operating profit by €100 million, which management says reflects the costs and short-term losses from the July acquisitions of Dremio and Prior Labs.
- Management presented an 'LLM-agnostic' AI approach that uses multiple external large language models, and said SAP will increase R&D spending now to build trusted enterprise AI without expecting a cloud-scale overhaul.
- Shares responded positively in after-hours trading, yet executives warned that valuation pressure and a possible escalation of the Middle East conflict are near-term risks that could affect the outlook.