SAP
Cloud’s still doing the heavy lifting
SAP’s second quarter looked like a classic “the migration to cloud keeps paying the bills” story. The company said current cloud backlog hit €22.9 billion, up 27% overall and 26% at constant currencies, while cloud revenue climbed 22% and cloud ERP Suite revenue rose 25%.
The numbers are doing the talking
This wasn’t just a one-line beat-and-bump kind of update. Total revenue was up 9%, IFRS operating profit rose 8%, and non-IFRS operating profit increased 7% — or 9% at constant currencies. Translation: the business is still growing, and management is still trying to keep the engine room tidy while the cloud transition speeds ahead.
The tiny catch in the fine print
The company also updated its 2026 non-IFRS operating profit outlook to reflect the dilutive impact from the Dremio and Prior Labs acquisitions. In plain English: SAP is spending on growth, but those deals are shaving a bit off near-term profit optics.
Why investors care
For SAP shareholders, this is the usual tradeoff in enterprise software: bigger cloud numbers now, a little margin drama later. If the backlog keeps compounding, the market can usually forgive a messy-looking quarter or two. Big picture: SAP is still making the cloud transition look less like a leap of faith and more like a very large, very profitable treadmill.