SAP SE said on April 23 that its first-quarter cloud business kept building momentum, with current cloud backlog rising to €21.9 billion and cloud revenue climbing 19% year on year, as the company posted higher profit and reaffirmed an aggressive full-year outlook. Chief Executive Christian Klein said SAP had a strong start to 2026, pointing to faster growth in its core cloud business and momentum in artificial intelligence tools sold to customers.
The German software group said current cloud backlog was up 20%, or 25% at constant currencies, while cloud ERP Suite revenue rose 23%, or 30% at constant currencies. Total revenue increased 6%, or 12% at constant currencies, and IFRS operating profit climbed 17%. Non-IFRS operating profit also rose 17%, or 24% at constant currencies.
Klein said, “We had a strong start to the year, with Current Cloud Backlog growing by 25% and Cloud Revenue up 27% at constant currencies.” He added, “This performance is supported by our momentum in Business AI as we are already delivering real outcomes for customers today.” SAP said cloud revenue growth was also helped by several quarter-specific effects.
The results matter today because SAP also said cloud revenue growth should slow in the second quarter, even after the strong opening three months of the year. That creates the first clear test for whether the quarter’s pace can be repeated as those one-off effects fade.
For 2026, SAP kept its targets tied to a near-term de-escalation of the conflict in the Middle East and the imminent consolidation of Reltio. It forecast cloud revenue of €25.8 billion to €26.2 billion at constant currencies, cloud and software revenue of €36.3 billion to €36.8 billion, and non-IFRS operating profit of €11.9 billion to €12.3 billion.
Profit was also supported by a decline in share-based compensation expenses of €135 million, while operating cash flow and free cash flow were hit by a €408 million payout tied to the settlement of the Teradata litigation case. SAP had also completed the first tranche of its new share repurchase program by April 1, after buying 16,280,097 shares at an average price of €161.16 and spending about €2.6 billion of a program that can reach €10 billion through Dec. 31, 2027.
Klein said SAP is “growing faster than the market and are gaining share as customers expand across our Suite and with our AI solutions,” and said, “At Sapphire, we will show how we are taking the next leap forward.” The next question is whether that cloud growth can stay ahead of the slowdown SAP itself expects in the second quarter.
