SAP reported third-quarter revenue of €8.7 billion, up 11% year-over-year on a constant-currency basis. Cloud subscription and support revenue climbed 27%, driven by strong uptake in RISE with SAP and SuccessFactors. The company’s operating margin expanded to a record 27.4%, compared with 25.1% in the year-ago quarter, reflecting disciplined cost management and higher software-as-a-service volumes.

Contrary to the narrative that AI is cannibalizing traditional software, SAP emphasized that its AI capabilities are reinforcing core offerings. The recently launched Joule Copilot has reached 2,500 enterprise customers within six weeks of release, delivering embedded generative AI across finance, procurement, and supply-chain modules. CEO Christian Klein stated that AI is accelerating deal velocity and customer retention, with pilot programs showing a 20% reduction in procurement cycle times.

SAP deepened alliances with Microsoft and Google to co-innovate on cloud infrastructure and AI services. Under the Microsoft collaboration, SAP’s ERP workloads have been certified on Azure Quantum, paving the way for advanced optimization scenarios. Meanwhile, a joint development fund with Google Cloud will invest €200 million over three years to accelerate data-management and machine-learning projects for joint customers.

For the full fiscal year, SAP reiterated its target of double-digit cloud-revenue growth and an operating margin above 27%. The renewals backlog stands at €9 billion, up 15% compared with last year, while new customer additions increased by 18%. CFO Luka Mucic highlighted that remaining performance obligations reached €17 billion, providing strong revenue visibility into 2024.