German Software Giant SAP Reports Record Q3 Revenue, CEO Attributes Cloud Growth to AI Agent Joule

SAP SE, Europe’s largest software company and a German enterprise application giant, reported record-breaking quarterly revenue on October 21, 2026, surpassing the €10 billion barrier for the first time with total sales of €10.27 billion ($11.2 billion). Adjusted earnings per share came in at €1.89, beating analyst expectations of €1.83.

Cloud operations served as the primary growth engine: SAP’s cloud revenue rose 25% year-over-year to €6.67 billion, while current cloud backlog surged 26% to €24.11 billion, exceeding the 24%-25% growth forecast by analysts. Non-IFRS operating profit climbed 18% to €3.03 billion, and free cash flow increased 36% to €1.72 billion.

Chief Executive Christian Klein stated clearly during the conference call: “AI was the main driver behind customer’s move to the cloud during the quarter.” He revealed that hundreds of customers have signed up for new subscriptions to access SAP’s autonomous AI agent tool, Joule. Designed as a conversational interface layer connecting to more than 70 AI models, Joule acts as a core component of the “autonomous enterprise” strategy, working alongside existing SAP applications rather than replacing them.

Chief Financial Officer Dominik Asam noted that part of the cloud growth stemmed from customers recovering from previous financial distress. While raising the full-year subscription revenue guidance toward the upper end of the €25.8 billion to €26.2 billion range, Asam warned of a gloomy economic backdrop, citing rising oil prices and U.S. interest rates that are “starting to develop teeth.” The fourth quarter will be critical in determining how the rest of the fiscal year lands.