Software provider SAP Q3 revenue rises on cloud business growth

SAP SE

Today 21:15

Overview
Germany enterprise software provider's preliminary Q3 revenue rose 13% yr/yr, cloud revenue up 26%
Adjusted EBIT for Q3 beat analyst expectations
Cloud revenue growth aided by multi-quarter catch-up from customers returning from financial distress

Outlook
SAP sees 2026 cloud revenue toward upper end of €25.8–26.2 bln at constant currencies
Company expects 2026 cloud and software revenue toward upper end of €36.3–36.8 bln at constant currencies
SAP continues to expect 2026 non-IFRS operating profit of €11.8–12.2 bln at constant currencies

Result Drivers
CLOUD MOMENTUM - Co said strong growth in cloud revenue and backlog was driven by customer adoption of its Autonomous Enterprise strategy and investments in cloud, data foundation, and business AI
COST MANAGEMENT - CFO said disciplined cost management paired with continued cloud momentum helped grow both revenue and operating profit
ACQUISITIONS IMPACT - Co said Q3 revenue included €49 mln from acquisitions of Reltio, Dremio, and Prior Labs, while operating profit was negatively impacted by €59 mln (IFRS) and €39 mln (non-IFRS) from these acquisitions

Company press release: ID:nPn3MQZxWa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EBIT
Beat
EUR 3.03 bln
EUR 2.96 bln (13 Analysts)
Q3 Adjusted EBIT Margin
 
29.50%
 
Q3 Adjusted Free Cash Flow
 
EUR 1.72 bln
 
Q3 Cloud Revenue
 
EUR 6.67 bln
 
Q3 EBIT
 
EUR 2.93 bln
 
Q3 EBIT Margin
 
28.50%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy"
Wall Street's median 12-month price target for SAP SE is €213.54, about 2.3% above its October 21 closing price of €208.65
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 17 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)