SAP SE (SAPN) Q3 2026 Earnings Report
MX:SAPN Q3 2026 EPS Results
- Actual EPS
- MXN 39.75
- Consensus EPS
- MXN 38.23
- Beat/Miss
- Beat by +MXN 1.52
- One Year Ago EPS
- MXN 34.70
MX:SAPN Q3 2026 Revenue Results
- Actual Revenue
- MXN 221.97B
- Expected Revenue
- MXN 213.86B
- Beat/Miss
- Beat by +MXN 8.11B
- YoY Revenue Growth
- +11.40%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/21/2026
- Time
- After Close
- Conference Call
- Wednesday, October 21, 2026
MX:SAPN Upcoming Earnings
SAP SE's next earnings date is estimated for January 28, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:SAPN Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive, supported by record quarterly revenue, 25% cloud revenue growth, 26% cloud backlog growth, market share gains, broad AI adoption, strong customer wins, and improved cash generation. The main negatives were lower cloud gross margin, declines in services and software licenses revenue, macroeconomic and Q4 booking uncertainty, higher accounts receivable, and the need to continue improving AI agents and managing investment-related margin pressures. Highlights significantly outweighed lowlights.
Company Guidance
SAP expects a slight deceleration in constant currencies current cloud backlog growth in 2026, while reaffirming its previous guidance for current cloud backlog, operating profit, and free cash flow; it expects to trend towards the upper end of its cloud and software revenue outlook, implying around 23% cloud revenue growth in Q4, and continues to plan for total revenue growth to accelerate in 2027. Q4 accounts for around 50% of annual bookings volume, full-year free cash flow guidance remains €10 billion, SAP expects up to €3 billion efficiency gains over the course of the next 2 years, and remains firmly committed to containing growth in total operating expenses, including cost of goods sold, to 80% to 90% growth of the top line.
- Record Revenue and Strong Profit GrowthQ3 total revenue reached €10.3 billion, up 12%, marking the first time in SAP's history that quarterly revenue crossed €10 billion. Operating profit grew 18% to more than €3 billion, while non-IFRS operating profit surpassed €3 billion.
- Cloud Backlog and Cloud Revenue ExpansionProven cloud backlog surpassed €24 billion, reaching €24.1 billion and growing 26%. Cloud revenue was approximately €6.7 billion, up 25% in constant currencies, significantly driven by the Business AI, data, and platform businesses.
- Cloud ERP Suite GrowthCloud ERP suite revenue increased 28% in Q3 and accounted for 89% of total cloud revenue.
- Market Share GainsAccording to IDC, SAP was growing approximately 11 percentage points faster than the market, and management said SAP continued to win market share at scale.
- AI Adoption Driving Cloud DemandNine out of SAP's 50 largest deals included AI and the Business Data Cloud. Management said AI was the main driver behind customers' move to the cloud because it accelerates RISE with SAP migrations, strengthens the business case for SAP's suite, and supports the data and process foundation required for enterprise-grade AI.
- Broad Customer and Industry WinsSAP added or expanded customers across financial services, technology and research, manufacturing, logistics, life sciences, retail, and other industries, including Banco Bilbao, First Loan Bank of Canada, Infineon, Fraunhofer Gesellschaft, NTN Corporation, Nagel-Group, the U.S. Defense Logistics Agency, AstraZeneca, Decathlon, Salling Group, Henkel, and others. Many customers, including Mondelez, Panasonic, Roche, Infosys, and Amasvis, went live with RISE with SAP in Q3.
- Industry AI Productivity ImprovementsSalling Group uses Industry AI to manage suppliers, classify new products, and trigger supply-chain actions. Management said time to shelf improved by up to 66% and manual category-management time was reduced by up to 70%.
- Joule Work and Autonomous Enterprise ProgressSAP launched Joule Work as a workbench for the autonomous enterprise, combining natural-language conversations, live cross-system workspaces, and Joule Studio for extending or building agents. SAP said its platform supports approximately 400 million users, 400 assistants, and 3,000 agents across the autonomous suite.
- Business AI Platform Scale and Model ChoiceSAP offers access to more than 70 frontier and open-weight models and remains model-agnostic. Its Business Data Cloud knowledge graph maps more than 7 million fields, 0.5 million tables, and 400 data products, with Dremio and Reltio extending the context layer beyond SAP data.
- AI Accuracy, Cost, and Governance DifferentiationManagement stated that in Ariba, Joule delivers 2x the accuracy of leading frontier models at 0.5x the total cost. SAP also provides centralized governance through the Agent Hub, identity and authorization management, compliance coverage across 60 countries and 26 industries, and stated that customer data and process IP are not uploaded to large language models for training or other purposes.
- Internal AI Productivity GainsSAP's approximately 40,000 developers completed about 70% more code contributions since the beginning of the year. Joule Work Desktop was live for more than 110,000 employees, and SAP reported productivity gains of 20% across central functions such as finance, HR, and procurement.
- Strong Regional PerformanceCloud revenue performance was particularly strong in APJ and EMEA and solid in the Americas. Brazil, France, Germany, Italy, India, South Korea, and Spain had outstanding performance, while Switzerland, the United Kingdom, and the United States were particularly strong. Management said performance across regions had been consistent over the last four quarters.
- Robust Cash Flow and EPS GrowthFree cash flow was €1.7 billion in Q3. IFRS earnings per share increased 14% to €1.96, while non-IFRS earnings per share increased 19% to €1.89.
- Raised Revenue Outlook PositionSAP expects to trend toward the upper end of its previously guided range for 2026 cloud and software revenue, while reaffirming its previous guidance for current cloud backlog, operating profit, and free cash flow.
- Stabilization in Transactional BusinessManagement said the transactional business had moved from hovering around zero or slightly negative growth back into positive territory, reducing its headwind, although it remained well below group-average cloud growth.
- Concur Business Remains HealthyManagement described Concur as a very stable and healthy business, primarily focused on expense management and deeply integrated with customers' finance solutions. SAP said adoption of its agents was particularly high in the Concur line of business and that new partnerships with credit-card providers and airlines would be announced.
- Planned AI Efficiency GainsSAP said it expects to gain up to €3 billion of efficiency over the next two years through AI across research and development, cloud delivery, sales, finance, and HR, while targeting total operating-expense growth, including cost of goods sold, at 80% to 90% of top-line growth.
MX:SAPN Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 28, 2027 | 2026 (Q4) | 41.39- | 36.31 | ― | ― |
| Oct 21, 2026 | 2026 (Q3) | 38.2339.75 | 34.7 | 14.56% (+5.05) | |
| Jul 23, 2026 | 2026 (Q2) | 37.8433.98 | 33.06 | 2.78% (+0.92) | |
| Apr 23, 2026 | 2026 (Q1) | 36.2937.82 | 30.7 | 23.19% (+7.12) | |
| Jan 29, 2026 | 2025 (Q4) | 33.1636.31 | 27.41 | 32.49% (+8.90) | |
| Oct 22, 2025 | 2025 (Q3) | 32.7834.70 | 24.99 | 38.87% (+9.71) | |
| Jul 22, 2025 | 2025 (Q2) | 31.1733.06 | 22.41 | 47.53% (+10.65) | |
| Apr 22, 2025 | 2025 (Q1) | 27.4830.70 | 16.29 | 88.47% (+14.41) | |
| Jan 28, 2025 | 2024 (Q4) | 26.3227.41 | 28.87 | -5.07% (-1.47) | |
| Oct 21, 2024 | 2024 (Q3) | 24.4624.99 | 28.78 | -13.19% (-3.79) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat Missed