SAP Sees 27% Cloud Revenue Growth and 25% Backlog Increase in Q1
SAP’s cloud backlog rose 25% to EUR21.9 billion, while cloud revenue jumped 27% to nearly EUR6 billion and total revenue climbed 12% to EUR9.6 billion. Operating profit grew 24% to EUR2.9 billion with a 30% margin, and non-IFRS EPS increased 20% to EUR1.72.
1. Q1 Financial Performance
SAP reported total revenue of EUR9.6 billion, a 12% year-over-year increase driven by higher subscription and support sales. Operating profit rose 24% to EUR2.9 billion, lifting the operating margin by 2.9 percentage points to 30%, while free cash flow reached EUR3.2 billion despite a EUR408 million payout.
2. Cloud Segment Highlights
The current cloud backlog expanded 25% to EUR21.9 billion, and cloud revenue grew 27% to nearly EUR6 billion, fueled by a 30% jump in cloud ERP suite revenue. Non-IFRS earnings per share climbed 20% to EUR1.72, reflecting strong subscription growth and continued market share gains against the enterprise applications cloud market.
3. Risks and Outlook
SAP cautioned that geopolitical tensions, notably in the Middle East, could extend deal cycles and pressure customer investment. The company anticipates slight deceleration in cloud backlog and revenue growth in the coming quarters and noted challenges in large-scale enterprise AI adoption due to data integration complexities.