July 23, 2026
Q2 and Half-Year 2026 Financial Results
Christian Klein, CEO
“We delivered another quarter of strong current cloud backlog growth, up 26% at constant currencies. This performance is underpinned by our Autonomous Enterprise strategy with strong momentum across our Autonomous Suite as well as our Business AI Platform. Customers are choosing SAP to enable accurate and compliant AI outcomes grounded in their most critical business processes and data.”
Dominik Asam, CFO
“Q2 was another strong quarter, highlighted by sustained current cloud backlog and free cash flow growth against a volatile macroeconomic backdrop. These results reflect our disciplined execution and our ability to deliver against our operating objectives. As part of that execution, we aggressively drive our own transformation into an Autonomous Enterprise, leveraging AI to boost both effectiveness and efficiency at the same time.”
At a Glance
Current cloud backlog of €22.9 billion, up 27% and up 26% at constant currencies
Cloud revenue up 22% and up 24% at constant currencies
Cloud ERP Suite revenue up 25% and up 27% at constant currencies
Total revenue up 9% and up 11% at constant currencies
IFRS operating profit up 8%, non-IFRS operating profit up 7% and up 9% at constant currencies
2026 non-IFRS operating profit outlook updated to reflect dilutive impact from Dremio and Prior Labs acquisitions
Documents and Links
Financial Performance
Group results at a glance – Second quarter 2026
| IFRS | Non-IFRS1 | ||||||
| € million, unless otherwise stated | Q2 2026 | Q2 2025 | ∆ in % | Q2 2026 | Q2 2025 | ∆ in % | ∆ in % const. curr. |
| Current cloud backlog | 22,929 | 18,052 | 27 | 26 | |||
| SaaS/PaaS2 | 6,216 | 5,045 | 23 | 6,216 | 5,045 | 23 | 25 |
| Thereof Cloud ERP Suite2 | 5,525 | 4,422 | 25 | 5,525 | 4,422 | 25 | 27 |
| Thereof Extension Suite2 | 692 | 624 | 11 | 692 | 624 | 11 | 12 |
| IaaS2 | 65 | 85 | −23 | 65 | 85 | −23 | −22 |
| Cloud revenue | 6,281 | 5,130 | 22 | 6,281 | 5,130 | 22 | 24 |
| Software licenses revenue | 131 | 194 | −32 | 131 | 194 | −32 | −32 |
| Software support revenue | 2,439 | 2,642 | −8 | 2,439 | 2,642 | −8 | −7 |
| Cloud and software revenue | 8,851 | 7,966 | 11 | 8,851 | 7,966 | 11 | 13 |
| Services Revenue | 1,027 | 1,061 | −3 | 1,027 | 1,061 | −3 | −2 |
| Total revenue | 9,878 | 9,027 | 9 | 9,878 | 9,027 | 9 | 11 |
| Cloud gross profit | 4,664 | 3,833 | 22 | 4,687 | 3,856 | 22 | 23 |
| Cloud gross margin (in %) | 74.3 | 74.7 | −0.5pp | 74.6 | 75.2 | −0.6pp | −0.7pp |
| Gross profit | 7,228 | 6,620 | 9 | 7,250 | 6,643 | 9 | 11 |
| Gross margin (in %) | 73.2 | 73.3 | −0.2pp | 73.4 | 73.6 | −0.2pp | −0.2pp |
| Operating profit (loss) | 2,643 | 2,456 | 8 | 2,743 | 2,568 | 7 | 9 |
| Operating margin (in %) | 26.8 | 27.2 | −0.5pp | 27.8 | 28.5 | −0.7pp | −0.4pp |
| Profit (loss) after tax | 2,209 | 1,749 | 26 | 1,828 | 1,747 | 5 | |
| Earnings per share - Basic (in €) | 1.89 | 1.45 | 30 | 1.59 | 1.50 | 6 | |
| Net cash flows from operating activities | 3,153 | 2,577 | 22 | ||||
| Free cash flow | 3,002 | 2,357 | 27 | ||||
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).
Group results at a glance – Six months ended June 2026
| IFRS | Non-IFRS1 | ||||||
| € million, unless otherwise stated | Q1–Q2 2026 | Q1-Q2 2025 | ∆ in % | Q1–Q2 2026 | ∆ in % | ∆ in % const. curr. | |
| Current cloud backlog | 22,929 | 18,052 | 27 | 26 | |||
| SaaS/PaaS2 | 12,112 | 9,935 | 22 | 12,112 | 9,935 | 22 | 27 |
| Thereof Cloud ERP Suite2 | 10,739 | 8,673 | 24 | 10,739 | 8,673 | 24 | 29 |
| Thereof Extension Suite2 | 1,373 | 1,262 | 9 | 1,373 | 1,262 | 9 | 12 |
| IaaS2 | 131 | 188 | −30 | 131 | 188 | −30 | −28 |
| Cloud revenue | 12,244 | 10,124 | 21 | 12,244 | 10,124 | 21 | 26 |
| Software licenses revenue | 247 | 377 | −34 | 247 | 377 | −34 | −33 |
| Software support revenue | 4,908 | 5,403 | −9 | 4,908 | 5,403 | −9 | −6 |
| Cloud and software revenue | 17,399 | 15,904 | 9 | 17,399 | 15,904 | 9 | 13 |
| Services Revenue | 2,033 | 2,136 | −5 | 2,033 | 2,136 | −5 | −2 |
| Total revenue | 19,432 | 18,040 | 8 | 19,432 | 18,040 | 8 | 11 |
| Cloud gross profit | 9,114 | 7,553 | 21 | 9,168 | 7,601 | 21 | 25 |
| Cloud gross margin (in %) | 74.4 | 74.6 | −0.2pp | 74.9 | 75.1 | −0.2pp | −0.4pp |
| Gross profit | 14,201 | 13,226 | 7 | 14,263 | 13,275 | 7 | 11 |
| Gross margin (in %) | 73.1 | 73.3 | −0.2pp | 73.4 | 73.6 | −0.2pp | −0.3pp |
| Operating profit (loss) | 5,383 | 4,789 | 12 | 5,609 | 5,024 | 12 | 16 |
| Operating margin (in %) | 27.7 | 26.5 | 1.2pp | 28.9 | 27.8 | 1.0pp | 1.2pp |
| Profit (loss) after tax | 4,155 | 3,545 | 17 | 3,830 | 3,428 | 12 | |
| Earnings per share - Basic (in €) | 3.55 | 2.98 | 19 | 3.31 | 2.94 | 12 | |
| Net cash flows from operating activities | 6,666 | 6,357 | 5 | ||||
| Free cash flow | 6,250 | 5,939 | 5 | ||||
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 Results1
Current cloud backlog growth benefited from the first-time inclusion of Reltio, which contributed less than 1 percentage point to the constant currencies growth rate.
The sequential decline in both IFRS and non-IFRS operating profit growth is mainly caused by the sequential deceleration of cloud- and total revenue growth, an unusually low stock-based compensation expense in the first quarter, accelerated investments into research and development as well as the dilutive impact of the Reltio acquisition.
IFRS effective tax rate was 26.5% and non-IFRS effective tax rate was 30.8%. The IFRS effective tax rate is lower than the non-IFRS effective tax rate due to tax benefits from tax-exempt income.
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 June 30, 2026, 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.
[1] The Q2 2026 results were also impacted by other effects. For details, please refer to the disclosures on page 22 of the Quarterly Statement.
Business Outlook
Financial Outlook
For 2026, SAP is updating its non-IFRS operating profit outlook to reflect the dilutive impact of the Dremio and Prior Labs acquisitions closed in July, which is projected to be in excess of €100 million. SAP now expects:
€11.8 – 12.2 billion non-IFRS operating profit at constant currencies (2025: €10.42 billion), up 13% to 17% at constant currencies. The previous outlook was €11.9 – 12.3 billion.
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.
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%)2
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 (10.6%) and to accelerate in 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.
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. 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.
[2] 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).
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 June 30, 2026 Rates Apply for 2026
| In percentage points | Q3 2026 | FY 2026 |
| Cloud revenue growth | 1.5pp | –1.5pp |
| Cloud and software revenue growth | 1.0pp | –1.5pp |
| Operating profit growth (non-IFRS) | 0.0pp | –2.0pp |
| This includes an exchange rate of 1.14 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
Business Highlights
In the second quarter, customers around the globe continued to choose the “RISE with SAP” journey. These customers included: ACCIONA, AIRBUS, City of Osnabrueck, Electrolux, Eli Lilly, Gilead Sciences, HARTING, Hindustan Zinc, The Humboldt University of Berlin, JET, Ørsted, Samsonite Group, Shell, The Shoprite Group, SIGNAL IDUNA, SPAR (CH), Sun Pharma, Vonovia.
Gooroo Crédito, Modular Data Centers, Parloa, Tarrant County, Techem chose “SAP GROW”.
AMADEUS, BBC, Booking.com, GOL, Oki Electric Industry, PwC, University Hospital Zurich, Vale chose SAP’s AI and data solutions.
Key customer wins across SAP’s solution portfolio included: Birlasoft, Capgemini, Haier Group, KaDeWe.
Döhler, FANUC Europe, Fonterra, Natura Cosméticos, SABESP, TEAG went live on SAP solutions in the second quarter.
In the second quarter, SAP’s cloud revenue performance was particularly strong in APJ and EMEA and solid in the Americas region. Brazil, France, Germany, Italy, India, South Korea and Spain had outstanding performance, while Australia, Singapore and the U.S. were particularly strong.
On April 10, SAP announced that it has extended the contract of Gina Vargiu-Breuer, Chief People Officer of SAP SE, for another three years until January 31, 2030.
On April 22, SAP and Google Cloud announced a new partnership that will help marketers put AI agents to work at scale.
On May 4, SAP and Dremio announced that SAP has agreed to acquire Dremio, an open, high-performance data lakehouse platform built to accelerate agentic AI and expand SAP Business Data Cloud’s ability to combine SAP and non-SAP data to more effectively run analytical and AI workloads in real time. The acquisition was completed on July 6.
In addition, SAP and Prior Labs, the pioneer of Tabular Foundation Models (TFMs), announced that they have entered into a definitive agreement for SAP to purchase Prior Labs, accelerating SAP’s success in TFMs that started with SAP-RPT-1, and bringing one of the world’s leading TFM research teams into the SAP family. The acquisition was completed on July 16.
On May 5, SAP held its Annual General Meetings of Shareholders, with all agenda items achieving strong shareholder support.
On May 7, SAP announced that it has completed the acquisition of Reltio, a leading master data management (MDM) software provider.
On May 12, SAP introduced the Autonomous Enterprise to help enhance the world’s most critical business workflows, so that humans and AI work together to meet the accelerating demands of global business profitably, strategically and safely. In addition, SAP also announced strategic partnerships with Anthropic, Amazon Web Services, n8n, NVIDIA, Parloa, Palantir and Accenture.
On May 28, SAP rated A1 (stable) by Moody’s and A+ (stable) by S&P Global, successfully completed a Eurobond transaction with a total volume of €3.5 billion across four tranches with tenors of two, three, five and seven years. The net proceeds from this transaction are used for general corporate purposes, including (re)financing of recently announced acquisitions.
On July 9, SAP announced that it welcomes the European Commission’s decision to conclude its competition investigation into certain aspects of SAP’s on-premise maintenance and support practices through a commitment decision, following a constructive and cooperative dialogue.