SAP Q2: cloud backlog up 26% at constant currencies; profit outlook updated for AI acquisitions
SAP reported second-quarter 2026 results with current cloud backlog of €22.9 billion, up 27% (26% at constant currencies), cloud revenue up 22% (24% cc) and total revenue up 9% (11% cc). IFRS operating profit rose 8%. The company updated its 2026 non-IFRS operating profit outlook to reflect dilution from the Dremio and Prior Labs acquisitions.
What Happened
SAP announced Q2 and half-year 2026 results on July 23. The company's headline metrics: current cloud backlog €22.9 billion, up 27% and up 26% at constant currencies; cloud revenue up 22% (24% cc); Cloud ERP Suite revenue up 25% (27% cc); total revenue up 9% (11% cc); IFRS operating profit up 8% and non-IFRS operating profit up 7% (9% cc).
The Outlook Change
SAP updated its 2026 non-IFRS operating profit outlook to reflect the dilutive impact of the Dremio and Prior Labs acquisitions. CEO Christian Klein attributed the backlog growth to the company's Autonomous Enterprise strategy and its Business AI Platform.
Why This Matters
Current cloud backlog is SAP's own preferred forward indicator — contracted future cloud revenue — so a 26% constant-currency increase is the company's evidence that the cloud transition is still compounding. The outlook update states plainly that its AI acquisitions cost near-term profit.
What Is Still Unresolved
How much the acquisitions dilute 2026 profit is stated as an outlook adjustment, not a final figure, and constant-currency growth rates depend on exchange-rate assumptions the company sets out in its release.
What To Watch Next
Whether backlog growth holds in Q3, and the integration cost of Dremio and Prior Labs as reported in subsequent quarters.
Verification Status
Primary source: SAP SE (https://news.sap.com/2026/07/sap-announces-q2-and-half-year-2026-results/). An official source is authoritative for what THAT party published; it does not by itself confirm third-party claims. Silence from other parties is never treated as denial.
Sources
Primary source: SAP SE — https://news.sap.com/2026/07/sap-announces-q2-and-half-year-2026-results/
Disclaimer
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