SAP posts strong cloud growth
What happened
- SAP said on April 23 that first-quarter cloud revenue rose 19% to €5.96 billion, while total revenue increased 6% to €9.56 billion. - The clearest signal was backlog: current cloud backlog reached €21.9 billion, up 25% at constant currencies, with Cloud ERP Suite revenue up 30%. - SAP kept its 2026 outlook, even as free cash flow fell 9% after a Teradata settlement payout. (sap.com)
Why it matters
SAP opened 2026 with faster cloud growth and kept its full-year outlook in place after first-quarter results on April 23. (sap.com) Cloud revenue rose 19% to €5.962 billion, or 27% at constant currencies, and total revenue increased 6% to €9.555 billion. (sap.com) The biggest demand signal was backlog: SAP’s current cloud backlog reached €21.932 billion, up 20% reported and 25% at constant currencies. Cloud ERP Suite revenue rose 23% reported and 30% at constant currencies. (sap.com) Profit also improved. IFRS operating profit rose 17% to €2.741 billion, while non-IFRS operating profit rose 17% to €2.867 billion, or 24% at constant currencies. (sap.com) SAP still flagged that some first-quarter cloud growth came from quarter-specific effects, and it said cloud revenue growth is expected to decelerate in the second quarter. (sap.com) Cash generation moved the other way. Net cash from operating activities fell 7% to €3.513 billion and free cash flow fell 9% to €3.248 billion. (sap.com) SAP said operating cash flow and free cash flow were hit by a €408 million payout tied to the settlement of its Teradata litigation, after the companies agreed at the end of February 2026 to withdraw pending lawsuits. (sap.com 1) (sap.com 2) Chief Executive Christian Klein tied the quarter to SAP’s push in business artificial intelligence, saying customers are expanding across the company’s software suite and AI tools. The investor materials highlighted customer examples including faster invoicing, higher developer productivity and predictive maintenance savings. (sap.com 1) (sap.com 2) That AI push comes with a pricing shift. In a March 18 Bloomberg interview, Klein said SAP plans to charge customers based on AI consumption rather than only traditional subscriptions. (bloomberg.com) For now, the quarter’s hard numbers still come from cloud subscriptions and backlog, not from a separately disclosed AI revenue line. SAP’s message to investors was that demand stayed strong enough in the first quarter to support the 2026 forecast even with slower cash flow and an expected second-quarter growth deceleration. (sap.com 1) (sap.com 2)
Key numbers
- SAP said on April 23 that first-quarter cloud revenue rose 19% to €5.96 billion, while total revenue increased 6% to €9.56 billion.
- The clearest signal was backlog: current cloud backlog reached €21.9 billion, up 25% at constant currencies, with Cloud ERP Suite revenue up 30%.
- SAP kept its 2026 outlook, even as free cash flow fell 9% after a Teradata settlement payout.
- (sap.com) SAP opened 2026 with faster cloud growth and kept its full-year outlook in place after first-quarter results on April 23.
What happens next
- (sap.com) SAP still flagged that some first-quarter cloud growth came from quarter-specific effects, and it said cloud revenue growth is expected to decelerate in the second quarter.
- In a March 18 Bloomberg interview, Klein said SAP plans to charge customers based on AI consumption rather than only traditional subscriptions.
- SAP’s message to investors was that demand stayed strong enough in the first quarter to support the 2026 forecast even with slower cash flow and an expected second-quarter growth deceleration.
Quick answers
What happened in SAP posts strong cloud growth?
SAP said on April 23 that first-quarter cloud revenue rose 19% to €5.96 billion, while total revenue increased 6% to €9.56 billion. The clearest signal was backlog: current cloud backlog reached €21.9 billion, up 25% at constant currencies, with Cloud ERP Suite revenue up 30%. SAP kept its 2026 outlook, even as free cash flow fell 9% after a Teradata settlement payout. (sap.com)
Why does SAP posts strong cloud growth matter?
SAP opened 2026 with faster cloud growth and kept its full-year outlook in place after first-quarter results on April 23. (sap.com) Cloud revenue rose 19% to €5.962 billion, or 27% at constant currencies, and total revenue increased 6% to €9.555 billion. (sap.com) The biggest demand signal was backlog: SAP’s current cloud backlog reached €21.932 billion, up 20% reported and 25% at constant currencies. Cloud ERP Suite revenue rose 23% reported and 30% at constant currencies. (sap.com) Profit also improved. IFRS operating profit rose 17% to €2.741 billion, while non-IFRS operating profit rose 17% to €2.867 billion, or 24% at constant currencies. (sap.com) SAP still flagged that some first-quarter cloud growth came from quarter-specific effects, and it said cloud revenue growth is expected to decelerate in the second quarter. (sap.com) Cash generation moved the other way. Net cash from operating activities fell 7% to €3.513 billion and free cash flow fell 9% to €3.248 billion. (sap.com) SAP said operating cash flow and free cash flow were hit by a €408 million payout tied to the settlement of its Teradata litigation, after the companies agreed at the end of February 2026 to withdraw pending lawsuits. (sap.com 1) (sap.com 2) Chief Executive Christian Klein tied the quarter to SAP’s push in business artificial intelligence, saying customers are expanding across the company’s software suite and AI tools. The investor materials highlighted customer examples including faster invoicing, higher developer productivity and predictive maintenance savings. (sap.com 1) (sap.com 2) That AI push comes with a pricing shift. In a March 18 Bloomberg interview, Klein said SAP plans to charge customers based on AI consumption rather than only traditional subscriptions. (bloomberg.com) For now, the quarter’s hard numbers still come from cloud subscriptions and backlog, not from a separately disclosed AI revenue line. SAP’s message to investors was that demand stayed strong enough in the first quarter to support the 2026 forecast even with slower cash flow and an expected second-quarter growth deceleration. (sap.com 1) (sap.com 2)
