SAP on Thursday reported fourth-quarter revenue that met market estimates, \u200cas resilient demand for \u200cits cloud software and services suggested enterprise spending held up despite a cooling global economy.<\/p>\n
SAP also announced \u200ca two-year buyback program worth up to 10 billion euros.<\/p>\n
The Walldorf-based company has spent much of the past year racing to move its legacy database customers to the cloud while executing a 3.2-billion restructuring program. Major customers wins in the fourth quarter included Dexco, Lockheed Martin and Rolls-Royce. <\/p>\n
The company reported total revenue of 9.7 billion euros ($11.6 billion) for the quarter, in line with a company-compiled consensus. <\/p>\n
Cloud revenue for the fourth quarter came in at 5.6 billion euros versus a consensus of 5.5 billion euros.<\/p>\n
For the full year, cloud revenue surged 26% at constant currencies to 21 billion euros, while total cloud backlog climbed 30% to 77.3 billion euros. CEO Christian Klein said SAP Business AI has become a driver for growth as it was included in two thirds of SAP’s Q4 cloud order entry.<\/p>\n
SAP expects cloud revenue to grow between 23% and 25% in 2026 to between 25.8 billion euros and 26.2 billion euros. <\/p>\n
The company also projects cloud and software revenue of 36.3 billion euros to 36.8 billion euros, growing 12% to 13% \u2060while operating profit is \u2060expected to climb by 14% to 18% to 11.9 billion euros to 12.3 billion euros. <\/p>\n
The enterprise software maker anticipates free cash flow of approximately 10 billion euros for the year with its effective tax rate expected to improve to around 29% from 30.4%.<\/p>\n
SAP said current cloud backlog growth will slightly decelerate in 2026 after posting 25% growth in 2025, though it expects total revenue growth to accelerate through 2027 as more customers migrate to cloud-based solutions.<\/p>\n","protected":false},"excerpt":{"rendered":"
SAP on Thursday reported fourth-quarter revenue that met market estimates, \u200cas resilient demand for \u200cits cloud software and services suggested enterprise spending held up despite a cooling global economy. SAP also announced \u200ca two-year buyback program worth up to 10 billion euros. The Walldorf-based company has spent much of the past year racing to move its legacy database customers to the cloud while executing a 3.2-billion restructuring program. Major customers wins in the fourth quarter included Dexco, Lockheed Martin and Rolls-Royce. The company reported total revenue of 9.7 billion euros ($11.6 billion) for the quarter, in line with a company-compiled […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[],"class_list":["post-988950","post","type-post","status-publish","format-standard","hentry","category-it-2"],"acf":[],"_links":{"self":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/988950","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/comments?post=988950"}],"version-history":[{"count":0,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/posts\/988950\/revisions"}],"wp:attachment":[{"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/media?parent=988950"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/categories?post=988950"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/telecomlive.in\/web\/wp-json\/wp\/v2\/tags?post=988950"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}