SAP: Q3 cloud revenue up 25% YoY to €6.67B, vs. €6.57B est., total revenue up 12% to €10.27B, current cloud backlog up 26% to €24.1B, all in constant currencies

SAP's cloud backlog grew 26%, indicating a sustained customer shift to its cloud services.

SAP reported its third-quarter results, announcing it surpassed €10 billion in quarterly revenue for the first time. The company's cloud revenue increased by 25% year-over-year, reaching €6.67 billion, exceeding analyst estimates of €6.57 billion. Total revenue grew by 12% to €10.27 billion, with current cloud backlog seeing a 26% increase to €24.1 billion, all figures in constant currencies. SAP also raised its 2026 revenue outlook to the higher end of its projected range. The company's CEO attributed the strong performance, particularly the move to the cloud, to customer adoption driven by Artificial Intelligence (AI) capabilities, including their Joule assistant platform. SAP maintained its operating profit outlook for the full year.

The substantial growth in SAP's cloud revenue and backlog highlights the company's successful transition towards a cloud-centric business model. This trend is further reinforced by the explicit mention of AI as a primary driver for customer cloud adoption, suggesting that integrated AI solutions are becoming a key differentiator in the enterprise software market. SAP's ability to leverage AI, such as through its Joule assistant, appears to be accelerating its cloud momentum.

This performance signals increased competition in the enterprise cloud space, where AI integration is rapidly becoming a critical factor for customer acquisition and retention. Businesses are increasingly prioritizing platforms that offer advanced AI capabilities, pushing vendors to accelerate their AI roadmaps. SAP’s move to lift its 2026 outlook indicates confidence in continued growth, likely fueled by ongoing demand for cloud-based AI solutions.