SAP SE (SAP (SAP)) reported its second-quarter results after Thursday's closing bell, and on the surface, it looked like a miss. Earnings of $1.85 per share fell short of the $2.01 consensus estimate by nearly 8%, and revenue of $11.48 billion just barely missed the Street's $11.49 billion target. But investors didn't seem to care — the stock was up 1.52% to $148.60 in extended trading.
Why the disconnect? Because the headline numbers don't tell the full story. SAP's cloud business is on fire, and that's what the market is really watching.
Cloud Growth Steals the Show
SAP's current cloud backlog hit €22.9 billion (about $26.1 billion), up 27% from last year — or 26% at constant currencies. Cloud revenue itself grew 22% (24% at constant currencies), and the cloud ERP Suite revenue jumped 25% (27% at constant currencies). Total revenue rose 9% (11% at constant currencies).
CEO Christian Klein attributed the performance to the company's Autonomous Enterprise strategy. "We delivered another quarter of strong current cloud backlog growth, up 26% at constant currencies," he said. "This performance is underpinned by our Autonomous Enterprise strategy with strong momentum across our Autonomous Suite as well as our Business AI Platform."
Profit Outlook Tweaked, But Growth Ahead
SAP updated its 2026 non-IFRS operating profit outlook to reflect the dilutive impact from its recent acquisitions of Dremio and Prior Labs. But the company expects constant-currency total revenue growth in 2026 to remain at similar levels as 2025 (10.6%) and to accelerate in 2027.
So while the quarter itself was a slight miss, the underlying cloud momentum and forward guidance suggest SAP is still on a solid growth trajectory. Investors seem to agree — they're looking past the earnings miss and focusing on the bigger picture.
