Software company SAP beat estimates on operating profit last quarter, but missed on revenue as its cloud revenue growth slowed.
Total revenue was EU€9.08 billion, up 7% year-over-year but below LSEG estimates of €9.17 billion. Operating profit grew 14% to €2.57 billion, above estimates of €2.55 billion.
“SAP delivered a great Q3 with strong cloud revenue growth of 27%. We are gaining market share as our customers are adopting solutions across the entire Business Suite, including Business Data Cloud and AI at accelerated pace,” said SAP CEO Christian Klein.
“For Q4 we are executing against a strong pipeline – which gives us confidence in our accelerating total revenue growth ambition for 2026.”
Cloud revenue was up 22%, or 27% on a constant currency basis, to €5.29 billion. This is its slowest growth since 2023’s Q4, and below estimates of €5.33 billion.
Its Cloud & Software revenue rose by 8% to €8.02 billion, while Cloud Enterprise Resource Planning suite revenue was up 26% to €4.59 billion.
Diluted earnings per share were €1.71, growing 38%. Total gross profit increased by 7% to €6.70 billion.
SAP’s Cloud gross profit increased by 24% to €3.97 billion. Its Cloud backlog is €18.84 billion, up 23%.
The company has cut its full-year outlook for Cloud revenue, and now predicts it will be at the lower end of its previous guidance range of €21.6-21.9 billion. It expects total Cloud & Software revenue of €33.1-33.6 billion.
SAP’s (ETR: SAP) share price closed at €236.85, down from its previous close at €240.40. Its market capitalisation is €291.60 billion.
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