SAP Posts Higher Revenue, Operating Profit, Sees Fiscal Year Cloud Revenue at High End of Range

By Paul Ziobro

SAP reported higher revenue and operating profit for the third quarter and said it expects cloud revenue to come in at the high end of its prior outlook range.

Reporting on a non-IFRS basis, the German business-software company said total revenue rose 13% to 10.27 billion euros ($11.54 billion) from the prior-year period. Sales from SAP's cloud business increased 26% to 6.67 billion euros.

Net income grew to 2.27 billion euros from 2.05 billion euros. Operating profit--a closely watched metric for software companies--rose to 2.93 billion euros from 2.49 billion euros.

Analysts had forecast total revenue of 10.12 billion euros, cloud revenue of 6.59 billion euros and an operating profit of 2.94 billion euros, according to a non-IFRS consensus provided by the company.

SAP, like other European software companies, presents its figures as two sets of numbers. One set is based on the International Financial Reporting Standards--an international accounting method that seeks to provide a global reporting standard--though analysts and investors tend to follow SAP's non-IFRS numbers, which exclude restructuring expenses and acquisition-related charges.

For the year, SAP said it now expects cloud revenue toward the upper end of its oulook range of 25.8 billion euros and 26.2 billion euros. It continues to expect non-IFRS operating profit between 11.8 billion euros and 12.2 billion euros and free cash flow of roughly 10 billion euros.

Write to Paul Ziobro at paul.ziobro@wsj.com

(END) Dow Jones Newswires

October 21, 2026 16:40 ET (20:40 GMT)