Q2 2026 SAP SE Earnings Call Transcript
Key Points
- SAP SE (SAP) reported a strong Q2 with a 26% growth in current cloud backlog, indicating robust demand for its cloud offerings.
- Cloud revenue grew by 24% to EUR6.3 billion, driven by successful on-premise to cloud ERP migrations.
- The launch of the Autonomous Enterprise and Business AI platform received positive feedback, enhancing SAP SE (SAP)'s competitive positioning.
- SAP SE (SAP) is seeing significant productivity gains from AI, with a reported 30% increase in developer productivity.
- The company is maintaining its financial outlook for top-line parameters and free cash flow, demonstrating confidence in its strategic direction.
- SAP SE (SAP) experienced a slight decline in services revenue as consultants were reallocated to AI adoption efforts.
- The operating profit growth decelerated to 9% in Q2, partly due to increased R&D investments and marketing expenses.
- The ongoing conflict in the Middle East is creating uncertainty and weighing on customer decision-making.
- Recent acquisitions, such as Dremio and Prior Labs, are expected to have a slightly dilutive impact on operating profit.
- There is a need for SAP SE (SAP) to manage token costs effectively to optimize AI-related expenses.
Ladies and gentlemen, thank you for standing by. Welcome, and thank you for joining the SAP Q2 and Half Year 2026 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 second 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
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