SAP's stock slipped even as the company reported impressive growth in its cloud ERP segment, with revenue jumping 25% in the latest quarter. The cloud backlog swelled to €22.9 billion, underpinning healthy demand for its cloud offerings. Free cash flow climbed 27%, reaching €3 billion, signaling solid operational efficiency.
Total revenue increased by 9%, driven largely by cloud business growth offsetting declines in traditional software sales. SAP also updated its outlook for 2026, reflecting recent acquisitions of Dremio and Prior Labs as part of its strategy to boost cloud capabilities and data analytics.
