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(AWP Alliance News) - SAP SE shares rose on Wednesday as it backed its 2026 outlook following a strong third quarter.
Shares in the Walldorf, Germany-based enterprise software provider popped 4.1% after hours in New York on Wednesday. They had earlier closed up 1.7% at USD232.73.
SAP reported revenue of USD10.27 billion, up 13% from USD9.08 billion a year ago. Of this, Cloud revenue surged 26%. Profit after tax rose 11% to USD2.27 billion from USD2.05 billion. Earnings per share improved to USD1.96 from USD1.72.
At quarter-end, the cloud backlog stood at EUR24.1 billion, up 28% from a year earlier.
Chief Executive Christian Klein called the period "an outstanding quarter".
"Our Autonomous Enterprise strategy is not just resonating, it is being adopted. Our customers are investing in the technology behind it from the cloud and data foundation to our Business AI. They see that Joule Work makes the business case for their transformation more attractive than ever," Klein added.
Looking ahead, SAP continues to expect 2026 cloud revenue towards the upper end of the EUR25.8 billion to EUR26.2 billion range at constant currencies, compared to EUR21.02 billion a year ago. This represents an increase of 23% to 25% at constant currencies.
It has reaffirmed its cloud and software revenue target at the upper end of the EUR36.3 billion to EUR36.8 billion range at constant currencies, an increase of 12% to 13%, up from EUR32.54 billion in 2025.
It sees 2026 free cash flow at actual currencies of EUR10 billion, up from EUR8.24 billion in 2025.
By Aidan Lane, Alliance News reporter
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