SAP’s cloud is still booming, and that was enough to calm the AI-doom fears
SAP gave investors the number they wanted. Europe’s biggest software company said cloud revenue grew 22% to €6.28 billion in the second quarter, beating forecasts, SAP announced. Its cloud backlog, a measure of future sales, jumped 26%. The stock rose more than 6% in Frankfurt.
That relief is the story. SAP’s shares are down about 35% this year, Bloomberg reported, on fears that AI will hollow out the enterprise-software subscription model SAP is built on. It reported in a jittery week of tech earnings. A strong cloud quarter is the clearest answer SAP can give: its customers are still signing up, not walking away.
A beat, and a guidance cut
The picture was not all rosy. Operating profit rose 7% to €2.74 billion, but missed analyst hopes. SAP also trimmed its 2026 profit outlook to €11.8-12.2 billion, the Wall Street Journal reported. The cut reflects the...
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