SAP posts higher Q2 revenue as cloud backlog growth beats expectations

German software group reported 9.88 billion euros in Q2 revenue, cloud sales up 22% and current cloud backlog up 26% at constant currencies, while cutting full-year operating profit guidance after sequential growth slowed.

Summary

SAP reported second-quarter non-IFRS revenue of 9.88 billion euros, up 9.4% from a year earlier, with cloud revenue rising 22% to 6.28 billion euros. The company also said current cloud backlog increased 26% at constant currencies, above expectations of around 24%, helping ease investor concerns that artificial intelligence could disrupt cloud growth and sending SAP shares up 6.28%. SAP nevertheless lowered its full-year operating profit guidance, citing a sequential deceleration in growth.

Terms & Concepts
  • current cloud backlog: Expected cloud sales over the coming year based on existing contracts.
  • constant currencies: Growth measured excluding the effects of currency movements.
  • non-IFRS: Earnings measure excluding some standard accounting items.