SAP gave investors the number they wanted. Europe’s biggest software company said cloud revenue grew 22% to €6.28 billion in the second quarter, beating forecasts, SAP announced. Its cloud backlog, a measure of future sales, jumped 26%. The stock rose more than 6% in Frankfurt.
That relief is the story. SAP’s shares are down about 35% this year, Bloomberg reported, on fears that AI will hollow out the enterprise-software subscription model SAP is built on. It reported in a jittery week of tech earnings. A strong cloud quarter is the clearest answer SAP can give: its customers are still signing up, not walking away.
A beat, and a guidance cut
The picture was not all rosy. Operating profit rose 7% to €2.74 billion, but missed analyst hopes. SAP also trimmed its 2026 profit outlook to €11.8-12.2 billion, the Wall Street Journal reported. The cut reflects the cost of two July acquisitions: the data firm Dremio and the AI startup Prior Labs.
SAP is spending hard to keep up. Chief executive Christian Klein has diverted budget and reshuffled management to fund an AI push, and the company cut hiring and travel to pay for it. It is pushing customers off older on-premise software and into the cloud. It will soon charge more to maintain legacy systems.
