WALLDORF, Germany, April 23, 2026 ET — sap stock is in focus after SAP SE said on April 23, 2026, that it posted first-quarter results for the period ended March 31, 2026. The company highlighted a €21. 9 billion current cloud backlog, cloud revenue growth of 19%, and stronger operating profit in its SAP Quarterly Statement Q1 2026. Management pointed to Business AI momentum, disciplined execution, and a full-year outlook that assumes a near-term de-escalation of the conflict in the Middle East.
The update lands at a time when investors are watching whether the software group can keep cloud growth moving while protecting profitability. SAP said cloud revenue rose 27% at constant currencies, while cloud ERP Suite revenue climbed 23%, and total revenue increased 6% on an IFRS basis.
Cloud growth leads the quarter
The central message in the SAP Quarterly Statement Q1 2026 was clear: cloud remains the engine. SAP said the current cloud backlog rose 20%, or 25% at constant currencies, to €21. 9 billion. Cloud revenue advanced 19%, or 27% at constant currencies, and cloud ERP Suite revenue increased 23%, or 30% at constant currencies.
Total revenue rose 6%, or 12% at constant currencies. IFRS operating profit increased 17%, while non-IFRS operating profit also rose 17%, or 24% at constant currencies. The company framed the quarter as a strong start to the year and said it is growing faster than the market while gaining share as customers expand across its suite and with AI solutions.
What management emphasized
SAP said the performance was supported by momentum in Business AI and by disciplined execution in both revenue and profitability. Management also said it remained focused on managing the cost base and maintaining profitability amid an increasingly complex and uncertain macroeconomic and geopolitical environment.
In the company’s remarks included in the SAP Quarterly Statement Q1 2026, SAP said it is already delivering real outcomes for customers today and plans to show its next step forward at Sapphire. The same statement also noted that cloud revenue growth benefited from several quarter-specific effects, which SAP said will likely contribute to an expected deceleration in cloud revenue growth in the second quarter.
Immediate reaction and financial details
The quarter also reflected one-time and capital-allocation items that matter for the broader read-through on sap stock. IFRS and non-IFRS operating profit were helped by a €135 million decline in share-based compensation expenses. Operating cash flow and free cash flow were affected by a €408 million payout tied to the settlement of the Teradata litigation case.
SAP also said that, in January 2026, it announced a share repurchase program of up to €10 billion through December 31, 2027. As of April 1, 2026, the first tranche had been completed, with 16, 280, 097 shares repurchased at an average price of €161. 16 for a total of about €2. 6 billion.
Outlook points to more growth, with caveats
For full-year 2026, SAP said its outlook assumes a near-term de-escalation of the conflict in the Middle East and the imminent consolidation of Reltio. The company projected cloud revenue of €25. 8 billion to €26. 2 billion at constant currencies, cloud and software revenue of €36. 3 billion to €36. 8 billion at constant currencies, and non-IFRS operating profit of €11. 9 billion to €12. 3 billion at constant currencies.
The SAP Quarterly Statement Q1 2026 gives investors a sharper picture of the balance SAP is trying to strike: faster cloud expansion, stronger operating profit, and caution around the rest of the year. For now, sap stock is being judged on whether that mix can hold as the company moves into its next quarter.
