SAP reports strong Q1 2026 results as APJ cloud performance accelerates
SAP posted strong first-quarter results, with Cloud ERP revenue up 23% and particularly strong cloud performance across APJ
SAP reported strong financial results for the first quarter of 2026, driven by continued momentum in cloud adoption, AI solutions, and enterprise transformation initiatives. According to the company’s Q1 2026 quarterly statement, current cloud backlog reached €21.9 billion, up 20% year over year and 25% at constant currencies, while cloud revenue increased 19%, or 27% at constant currencies.
Cloud ERP Suite revenue rose 23% year over year to €5.2 billion, or 30% growth at constant currencies, reinforcing SAP’s continued transition toward cloud-based enterprise software and subscription-driven revenue models. Total revenue for the quarter grew 6% to €9.6 billion, while IFRS operating profit increased 17% to €2.7 billion.
“We had a strong start to the year, with Current Cloud Backlog growing by 25% and Cloud Revenue up 27% at constant currencies” said Christian Klein, Chief Executive Officer of SAP. “This performance is supported by our momentum in Business AI as we are already delivering real outcomes for customers today.”
Strong momentum in APJ supports regional relevance
SAP highlighted particularly strong cloud revenue performance in APJ (Asia Pacific Japan) during the quarter, alongside EMEA, while the Americas delivered solid growth. The APJ region includes Australia and New Zealand, reinforcing continued enterprise demand for cloud ERP modernization and AI-led business transformation across Asia-Pacific.
According to SAP’s quarterly statement:
APJ cloud revenue reached €862 million, up 18% year over year and 30% at constant currencies;
APJ cloud and software revenue totaled €1.25 billion, up 5% and 15% at constant currencies;
Total APJ revenue reached €1.36 billion, increasing 3% and 14% at constant currencies.
The company said customer demand remains strong across its cloud portfolio, with organizations continuing to adopt RISE with SAP, GROW with SAP, and AI-driven enterprise solutions.
AI and cloud remain key growth drivers
SAP attributed part of its performance to growing momentum in Business AI, as customers increasingly expand across the company’s enterprise suite and embedded AI capabilities.
During the quarter, SAP also announced the creation of a new Customer Value Group, consolidating customer success and services operations under Thomas Saueressig, who assumed the role of Chief Customer Officer effective April 1. The move is intended to strengthen adoption, renewal, and expansion of SAP’s cloud and AI-powered solutions.
In March, SAP also announced plans to acquire Reltio, a master data management provider, to help organizations make enterprise data AI-ready across SAP and non-SAP environments.
SAP maintains full-year 2026 outlook
Despite macroeconomic and geopolitical uncertainty, SAP maintained its 2026 financial guidance.
The company continues to expect:
Cloud revenue between €25.8 billion and €26.2 billion;
Cloud and software revenue between €36.3 billion and €36.8 billion;
Non-IFRS operating profit between €11.9 billion and €12.3 billion;
Approximately €10 billion in free cash flow in 2026.
“We delivered a solid start to the year, supported by disciplined execution in revenue and profitability” said Dominik Asam, Chief Financial Officer at SAP. “At the same time, we have remained focused on managing our cost base and maintaining profitability as we navigate an increasingly complex and uncertain macroeconomic and geopolitical environment.”
For organizations across Australia and New Zealand, SAP’s results reinforce sustained demand for cloud ERP transformation, AI integration, and scalable enterprise platforms.