SAP jumps as Q1 cloud backlog climbs 25% and profit rises on cloud demand
SAP shares are jumping after first-quarter 2026 results showed accelerating cloud momentum, with Current Cloud Backlog up 25% (constant currencies) to €21.9 billion. Cloud revenue rose 27% (constant currencies) and operating profit increased, while SAP reiterated full-year 2026 targets and highlighted a completed €2.6 billion first-tranche share buyback.
1. What’s driving SAP higher today
SAP is rallying after posting first-quarter 2026 results that emphasized stronger-than-expected cloud momentum. The key headline metric investors are reacting to is Current Cloud Backlog of €21.9 billion, up 25% at constant currencies, alongside cloud revenue growth of 27% at constant currencies—signals that the company’s subscription transition continues to gain traction. (news.sap.com)
2. The quarter in numbers investors are focusing on
Beyond backlog and cloud revenue, SAP reported meaningful profitability expansion. The quarterly statement highlighted operating profit support from lower share-based compensation expense, and coverage of the release cited a year-over-year increase in operating profit to about €2.74 billion, helped by cloud demand. Those profit dynamics are helping offset concerns that can arise when total revenue is viewed as less clean than recurring-cloud metrics. (prnewswire.com)
3. Outlook and capital return add to the bullish setup
SAP reiterated its full-year 2026 outlook in its Q1 communication, keeping focus on continued cloud growth through the year. The company also pointed to shareholder returns: it completed the first tranche of its share repurchase program as of April 1, 2026, buying back 16.3 million shares for roughly €2.6 billion—an additional support for sentiment as the market digests the earnings release. (investing.com)