SAP meets Q4 revenue forecasts, cloud demand resilient

Jan 29 - SAP on Thursday reported fourth-quarter revenue that met market estimates, as resilient demand ​for its cloud software and services suggested enterprise ‌spending held up despite a cooling global economy.

SAP also announced a ‌two-year buyback program worth up to 10 billion euros.

The company reported total revenue of 9.7 billion euros ($11.6 billion) for the quarter, in line with a company-compiled consensus.

Cloud revenue ⁠for the fourth ‌quarter came in at 5.6 billion euros versus a consensus of 5.5 billion euros.

SAP ‍expects cloud revenue to grow between 23% and 25% in 2026 to between 25.8 billion euros and 26.2 billion euros.

The company ​also projects cloud and software revenue of 36.3 ‌billion euros to 36.8 billion euros, growing 12% to 13% while operating profit is expected to climb by 14% to 18% to 11.9 billion euros to 12.3 billion euros.

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%.

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.

($1 = 0.8341 euros)

(Reporting ‌by Leo Marchandon and Tristan Veyet in ‌Gdansk; Editing by Matt Scuffham)