Q1 2026 SAP SE Earnings Call Transcript
Key Points
- SAP SE (SAP) reported a strong start to 2026 with a 25% increase in current cloud backlog, reaching EUR21.9 billion.
- Cloud revenue grew by 27%, driven by a 30% increase in cloud ERP suite revenue, contributing to a total revenue of EUR9.6 billion, up 12%.
- Operating profit increased by 24% to EUR2.9 billion, with an operating margin of 30%, up 2.9 percentage points.
- SAP SE (SAP) continues to gain market share, with Gartner Research noting a 15 percentage point faster growth compared to the global enterprise applications cloud market in 2025.
- The company highlighted successful customer wins and go-lives, including major companies like ConocoPhillips, Thales, and PayPal, demonstrating confidence in SAP SE (SAP)'s portfolio.
- Geopolitical tensions, particularly the conflict in the Middle East, pose economic uncertainties that could impact SAP SE (SAP)'s full-year results.
- There is an expected slight deceleration in current cloud backlog growth over the coming quarters.
- Cloud revenue growth is anticipated to decelerate in the second quarter due to quarter-specific effects that are unlikely to reoccur.
- The company faces challenges in large-scale adoption of enterprise AI, as agents often lack a full understanding of business data and processes.
- SAP SE (SAP) acknowledges that the macroeconomic environment remains complex and uncertain, which could affect customer sentiment and investment behavior.
Ladies and gentlemen, thank you for standing by. Welcome, and thank you for joining the SAP Q1 financial results conference call. (Operator Instructions)
I would now like to turn the conference over to Alexandra Steiger, Global Head of Investor Relations. Please go ahead.
Good evening, everyone, and welcome. Thank you for joining us. With me today are CEO, Christian Klein; and CFO, Dominik Asam. On this call, we will discuss SAP's first-quarter 2026 results. You can find the deck supplementing this call as well as our quarterly statement on our Investor Relations website.
During this call, we will make forward-looking statements, which are predictions, projections or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to differ materially. Additional information regarding these risks and uncertainties may be found in our filings with the SEC,
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