Politics · Singapore Bureau
SAP hits record quarterly revenue, raises 2026 outlook on cloud strength
German enterprise software giant SAP reported $14.3 billion in quarterly revenue, boosted by a 26 per cent surge in cloud services as artificial intelligence drives customer migration to the cloud.
LSN Singapore ·
SAP, the world's leading provider of enterprise resource planning software, posted record quarterly revenue of $14.3 billion, prompting the company to lift its outlook for 2026. The Walldorf-based firm's performance was anchored by robust cloud revenue growth, which expanded 26 per cent during the quarter, according to CEO Christian Klein.
The company's cloud division has emerged as a primary growth engine, with Klein attributing the expansion to artificial intelligence adoption among customers. Enterprises are increasingly migrating workloads to cloud environments to leverage AI capabilities for business transformation, he noted.
The stronger-than-expected quarterly results and improved forward guidance underscore SAP's successful pivot toward cloud and subscription-based revenue models, moving away from its legacy on-premise software business. The company's cloud-first strategy appears to be resonating with customers seeking to modernise their infrastructure.
SAP's elevated 2026 outlook reflects management confidence in sustained cloud demand and AI-driven digital transformation spending across its customer base in Europe, Asia-Pacific and other key markets. The company continues to compete with rivals including Salesforce and Oracle in the increasingly competitive enterprise cloud software sector.