SAP Beats Q3 Estimates as Cloud Backlog Climbs 26% to $27B
SAP sits 67% above its 52-week low of $144.97.
Summary
SAP beat on both lines for Q3 2026: adjusted EPS of $2.12 versus $2.09 consensus and revenue of $11.54B, up 13% year over year, against an $11.35B estimate. Cloud backlog rose 26% to $27B, the clearest read on future cloud revenue, and the company crossed €10B in quarterly revenue and €3B in non-IFRS operating profit for the first time. The one soft spot was cloud gross margin at 74.3%, just under the 74.6% consensus, while total gross margin of 73.4% was in line. Management guided FY2026 cloud revenue to $28.9B-$29.4B, up from $23.6B in 2025, and total revenue to $40.7B-$41.3B. Shares rose 4% after the print, a measured reaction for a company this size — the backlog number and guidance are what matter, not the headline beat. This follows the July 6-K where Q2 cloud backlog grew 27% but the operating profit outlook was trimmed, so the margin trajectory here is the key thing to confirm.
At the time of this announcement, SAP was trading at $242.10 on NYSE in the Technology sector, with a market capitalization of approximately $264.4B. The 52-week trading range was $144.97 to $281.37. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Seeking Alpha.