Sap Se

Q3 performance: strong growth + “Autonomous Enterprise” momentum - Total revenue: €10.3bn, +12% YoY (non-IFRS, constant-currency growth where stated). - Operating profit: ~€3bn, +18% YoY (non-IFRS operating profit also +18%). - Cloud: Current cloud backlog €24.1bn, +26% YoY; cloud revenue €6.7bn, +25% YoY (constant currency). - Cloud mix: Cloud ERP suite revenue +28% YoY, now ~89% of total cloud revenue. - Positive “surprise” vs history: First time SAP’s quarterly revenue exceeded €10bn.

AI as the growth engine (what’s driving deals and bookings) - SAP said Business AI + Business Data Cloud is a key driver of cloud growth; 9 out of 10 of the top 50 deals included AI and the Business Data Cloud. - Strategy adoption: customers are using RISE with SAP + Joule (agents/work) - “Joule Work” pitched as enterprise AI workbench (conversations/spaces/studio). - Cited commercial traction: early adopter feedback on RISE migration acceleration and Joule Work productivity (e.g., ~20% productivity gains for SAP employees in central functions).

Guidance/outlook: Q4 and 2026 leaning to the high end; 2027 acceleration plan with caution - 2026 outlook (as disclosed): Management expects to trend toward the upper end of the previously guided range for cloud and software revenue / operating profit / free cash flow and cloud backlog. - Key forecast signal for investors: Q4 is the biggest bookings quarter (~~50% of annual bookings)—SAP remains upbeat on execution but is not projecting an aggressive upside. - 2027: SAP reiterates belief it is well positioned to accelerate total revenue growth, but management explicitly frames 2027 as more challenging due to: - macro/political uncertainty, - Q4 volume sensitivity, - and planned greater services-to-adoption shift as AI reduces “hours-based” demand.