Slides
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Public Third Quarter2026 Results Christian Klein, CEO Dominik Asam, CFO October 21, 2026
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During this presentation we will make forward-looking statements which are predictions, projections, or other statements about future events. These statements are based on current expectations, forecasts, and assumptions that are subject to risks and uncertainties that could cause actual results and outcomes to materially differ. Additional information regarding these risks and uncertainties may be found in our filings with the Securities and Exchange Commission, including but not limited to the risk factors section of SAP’s 2025 Annual Report on Form 20-F. Safe Harbor Statement
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All numbers are in € millions, non-IFRS unless otherwise stated. Q3 was an outstanding quarter Current cloud backlog € millions 24,144 ▲ +28% (+26% @cc) Cloud revenue € millions 6,668 ▲ +26% (+25% @cc) Cloud ERP Suite revenue € millions 5,924 ▲ +29% (+28% @cc) 5,290 (+27%) 5,610 (+26%) 5,962 (+27%) 6,281 (+24%) 6,668 (+25%) 3,972 (+28%) 4,185 (+27%) 4,481 (+26%) 4,687 (+23%) 4,956 (+24%) Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 Cloud revenue in € millions (yoy @cc) Cloud gross profit in € millions (yoy @cc)
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Joule Work Web Desktop Spaces Conversations Joule Studio Mobile
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The Autonomous Enterprise coming to life “Partnering within the Early Adopter program for Joule Work Desktop has delivered more momentum in just a few months than we saw in all the years before. We see huge potential in making access to our SAP S/4HANA data significantly easier and faster through natural language. This has the potential to permanently transform how our teams interact with business data.” "The Sourcing Assistant has significantly improved the efficiency and quality of RFP creation. It provides valuable support throughout the sourcing process and its negotiation guidance and Agentic Thinking capabilities enable faster access to sourcing insights, allowing procurement professionals to focus more on strategy, supplier engagement, and value creation." “Our Joule journey is not about deploying another AI tool; it's about helping us work differently across Finance.”
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Powering the Autonomous Enterprise
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Turning SAP into an Autonomous Enterprise >110k Joule Work Desktop users >90% reported positive experience with Joule Work Desktop 20% productivity gains across central functions >€2bn efficiency run rate by end of 2028 ~70% increase of code pull requests merged into the codebase per developer (YTD) ~100 in-person AI code camps and AI trainings delivered Up to 80% time reduction in customer research and preparation with AI assistance Up to 50% faster AI-assisted sales planning Engineering & T echnology Go-to-Market
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SAP Q3 2026 financial results Cloud gross profit (Cloud gross margin in %) Gross profit (Gross margin in %) Operating profit € millions € millions € millions IFRS Non-IFRS IFRS Non-IFRS IFRS Non-IFRS 4,930 4,956 7,510 7,543 2,930 3,030 73.9% 74.3% 73.1% 73.4% ▲ +25% ▲ +25% (+24% @cc) ▲ +13% ▲ +13% (+12% @cc) ▲ +18% ▲ +18% (+18% @cc) Current cloud backlog Total revenue Cloud & software revenue Cloud revenue Cloud ERP Suite revenue € millions € millions € millions € millions € millions 24,144 10,270 9,249 6,668 5,924 ▲ +28% (+26% @cc) ▲ +13% (+12% @cc) ▲ +15% (+14% @cc) ▲ +26% (+25% @cc) ▲ +29% (+28% @cc)
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APJ Cloud revenue ▲ +26% (+28% @cc) Regional revenue performance AMERICAS EMEA Brazil had outstanding cloud revenue growth while the U.S. was particularly strong in the third quarter. France, Germany, Italy and Spain had outstanding cloud revenue growth in the third quarter, while Switzerland and the UK were particularly strong. Revenues calculated based on customer location; individual country highlights are based on Non -IFRS at constant currencies Cloud revenue ▲ +23% (+21% @cc) Cloud & software revenue ▲ +16% (+14% @cc) Cloud revenue ▲ +28% (+28% @cc) Cloud & software revenue ▲ +15% (+14% @cc) Cloud & software revenue ▲ +16% (+17% @cc) India and South Korea had outstanding cloud revenue growth.
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. Revenue Gross profit (Gross margin %) Non-IFRS in € millions, unless otherwise stated Q3 2026 ∆ in % ∆ in % @cc Q3 2026 ∆ in % ∆ in % @cc Cloud 6,668 26 25 4,956 (74.3) 25 24 SaaS/PaaS 6,612 27 26 IaaS 56 -27 -27 Software licenses and support 2,581 -5 -6 2,326 (90.1) -4 -5 Cloud and software 9,249 15 14 7,282 (78.7) 14 13 Services 1,021 -4 -5 261 (25.6) -13 -14 Total 10,270 13 12 7,543 (73.4) 13 12 Revenue and gross profit development
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Tax rate, cash flow, and earnings per share Effective tax rate Q3 | percent Operating cash flow Q3 | € millions Free cash flow Q3 | € millions Earnings per share Q3 | € IFRS Non-IFRS IFRS Non-IFRS Basic Diluted Basic 24.4 25.8 1,920 1,718 1.96 1.94 1.89 ▼ -0.9pp ▼ -2.1pp ▲ +28% ▲ +36% ▲+14% ▲ +14% ▲ +19%
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2026 financial outlook1 Cloud revenue Cloud & software revenue Current cloud backlog growth Employee Engagement Index Cloud Customer Satisfaction € billions @cc € billions @cc percent @cc percent percent 25.8 – 26.2 36.3 – 36.8 slightly decelerate 74 – 78 75 – 76towards the upper end of the outlook range towards the upper end of the outlook range ▲ +23% – 25% (2025: 21.02) ▲ +12% – 13% (2025: 32.54) (2025: 25%) (2025: 76%) (2025: 75%) Operating profit Free cash flow Effective tax rate Carbon emissions Business Health Culture Index € billions @cc € billions percent megatons percent Non-IFRS Non-IFRS steadily decrease 80 – 8211.8 – 12.2 approx. 10 approx. 29 ▲ +13% – 17% (2025: 10.42) (2025: 8.24) (2025: 30.5) (2025: 3.6) (2025: 81%) SAP further expects: - Constant currencies total revenue growth in 2026 to remain at similar levels as in 2025 (10.6%) and to accelerate in 2027. - Total operating expenses (non-IFRS) to grow at 80% to 90% of total revenue growth in 2027. - Constant currencies software support revenue decline rate to accelerate in the coming years as a consequence of an acceleration of customers transforming to the cloud. 1) 2026 financial outlook is based on constant currencies assumptions, including an exchange rate of 1.13 US Dollar per Euro.SAP's current cloud backlog outlook for full-year 2026 is based on the assumption of a stable macroeconomic environment in the fourth quarter. 2026 non-financial outlook
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Q&A
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18 Appendix
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19 Income statement: third quarter 2026 IFRS Non-IFRS € millions, unless otherwise stated Q3 26 Q3 25 ∆ % Q3 26 Q3 25 ∆ % ∆ % @cc Cloud 6,668 5,290 26 6,668 5,290 26 25 Software licenses 147 161 -9 147 161 -9 -9 Software support 2,434 2,565 -5 2,434 2,565 -5 -6 Software licenses and support 2,581 2,726 -5 2,581 2,726 -5 -6 Cloud and software 9,249 8,016 15 9,249 8,016 15 14 Services 1,021 1,060 -4 1,021 1,060 -4 -5 Total revenue 10,270 9,076 13 10,270 9,076 13 12 Total operating expenses -7,341 -6,589 11 -7,241 -6,510 11 10 Operating profit (loss) 2,930 2,487 18 3,030 2,566 18 18 Other non-operating income/expense, net -24 46 N/A -24 46 N/A Financial income, net 96 212 -55 -80 -44 84 Profit (loss) before tax 3,002 2,745 9 2,926 2,569 14 Income tax expense -734 -694 6 -755 -717 5 Profit (loss) after tax 2,269 2,051 11 2,171 1,852 17 Operating margin (in %) 28.5 27.4 1.1pp 29.5 28.3 1.2pp 1.5pp Earnings per share, basic (in €) 1.96 1.72 14 1.89 1.59 19 Appendix Due to rounding, numbers may not add up precisely
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20 Income statement: first nine months 2026 IFRS Non-IFRS € millions, unless otherwise stated Q1-Q3 26 Q1-Q3 25 ∆ % Q1-Q3 26 Q1-Q3 25 ∆ % ∆ % @cc Cloud 18,911 15,413 23 18,911 15,413 23 25 Software licenses 395 538 -27 395 538 -27 -26 Software support 7,342 7,969 -8 7,342 7,969 -8 -6 Software licenses and support 7,736 8,507 -9 7,736 8,507 -9 -7 Cloud and software 26,648 23,920 11 26,648 23,920 11 14 Services 3,055 3,196 -4 3,055 3,196 -4 -3 Total revenue 29,703 27,116 10 29,703 27,116 10 12 Total operating expenses -21,390 -19,840 8 -21,063 -19,527 8 10 Operating profit (loss) 8,313 7,276 14 8,639 7,590 14 17 Other non-operating income/expense, net -39 53 N/A -39 53 N/A Financial income, net 481 387 24 -199 -168 18 Profit (loss) before tax 8,755 7,715 13 8,401 7,474 12 Income tax expense -2,331 -2,119 10 -2,401 -2,194 9 Profit (loss) after tax 6,424 5,596 15 6,001 5,280 14 Operating margin (in %) 28.0 26.8 1.2pp 29.1 28.0 1.1pp 1.3pp Earnings per share, basic (in €) 5.50 4.70 17 5.20 4.53 15 Appendix Due to rounding, numbers may not add up precisely
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21 Gross margin development Non-IFRS, in percent Q1 25 Q2 25 Q3 25 Q4 25 FY 25 Q1 26 Q2 26 Q3 26 Cloud 75.0 75.2 75.1 74.6 75.0 75.2 74.6 74.3 Software licenses & support 90.1 89.0 88.9 90.4 89.6 88.9 89.8 90.1 Cloud & software 80.6 80.1 79.8 80.1 80.1 79.3 79.0 78.7 Services 21.8 24.9 28.4 25.3 25.1 23.1 25.1 25.6 Total gross margin 73.6 73.6 73.8 74.1 73.8 73.4 73.4 73.4 Appendix
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22 Cost ratios: third quarter 2026 | T otal revenue: €10.3bn Research & development Sales & marketing General administration 18.1% €1.9bn 21.7% €2.2bn 3.9% €0.4bn +0.0pp | +0.1pp @cc -1.6pp | -1.8pp @cc -0.1pp | -0.1pp @cc Non-IFRS as percent of total revenue Appendix
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23 Cost ratios: first nine months 2026 | T otal revenue: €29.7bn Research & development Sales & marketing General administration 18.2% €5.4bn 22.1% €6.6bn 3.8% €1.1bn +0.0pp | -0.1pp @cc -1.3pp | -1.4pp @cc -0.2pp | -0.2pp @cc Non-IFRS as percent of total revenue Appendix
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24 Balance sheet condensed: Sep 30, 2026 – IFRS Assets € millions 09/30/26 12/31/25 Cash, cash equivalents and other financial assets 10,997 9,771 Trade and other receivables 6,976 6,666 Other current assets 4,142 3,809 Total current assets 22,115 20,247 Goodwill 31,216 29,015 Intangible assets 2,796 2,282 Property, plant, and equipment 4,549 4,497 Other non-current assets 15,661 14,317 Total non-current assets 54,221 50,111 Total assets 76,336 70,358 Equity and liabilities € millions 09/30/26 12/31/25 Trade and other payables 3,002 2,433 Provisions 108 538 Contract liabilities, current 8,158 6,574 Other liabilities 7,842 7,865 Total current liabilities 19,110 17,409 Financial liabilities 8,535 6,021 Provisions 629 550 Contract liabilities, non-current 213 144 Other non-current liabilities 1,388 1,161 Total non-current liabilities 10,765 7,875 Total liabilities 29,875 25,284 Total equity 46,461 45,073 Total equity and liabilities 76,336 70,358 Due to rounding, numbers may not add up precisely Appendix
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25 Cash flow development € millions, unless otherwise stated Q1-Q3 2026 Q1-Q3 2025 ∆ in % Operating cash flow 8,586 7,859 9 – Purchase of PPE & intangibles -521 -559 -7 – Proceeds from sales of PPE & intangibles 85 110 -22 – Payments of lease liabilities -182 -204 -11 Free cash flow 7,968 7,205 11 Free cash flow in percent of profit after tax (IFRS) 124 129 -5pp Free cash flow in percent of total revenue 27 27 +0pp Due to rounding, numbers may not add up precisely Appendix
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26 Net debt € millions, unless otherwise stated 2026 2025 Net liquidity (+)/Net Debt (-) | 12/31/2025 | PY: 12/31/2024 3,381 1,695 Net cash flows from operating activities 8,586 7,859 Capital expenditure -521 -559 Proceeds from sales of PPE & intangibles 85 110 Payments of lease liabilities -182 -204 Business combinations -1,829 -700 Dividends -2,883 -2,743 Treasury shares -4,124 -1,937 Interest payments, net -152 -133 Other -147 -934 Net liquidity (+)/Net Debt (-) | 09/30/2026 | PY: 09/30/2025 2,213 2,453 Due to rounding, numbers may not add up precisely Appendix
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27 Additional outlook information and Non-IFRS adjustments Non-IFRS adjustments Actual Amounts Q3 2025 Actual Amounts Q3 2026 Est. Amounts FY 2026 Acquisition-related charges €96m €104m €340m to €420m Restructuring charges -€18m -€3m €0m to €20m Teradata litigation expenses €0m €0m €29m Gains and losses from equity securities, net -€256m -€176m N/A1 The company expects a full-year 2026 effective tax rate (Non-IFRS) of approximately 29% (2025: 30.5%). 1) Due to the uncertainty and potential variability of gains and losses from equity securities, we cannot provide an estimate for the full year without unreasonable efforts. This item could however have a material impact on our non-IFRS measures below operating profit Appendix
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28 Expected currency impact Expected currency impact based on September 30, 2026 level applied for 2026 While SAP’s 2026 financial outlook for the income statement parameters is at constant currencies (including an average exchange rate of 1.13 USD per EUR), actual currency reported figures are expected to be impacted by currency exchange rate fluctuations as the company progresses through the year, as reflected in the table below. in percentage points Q4 26 FY 2026 Cloud revenue growth 2.0pp -1.5pp Cloud and software revenue growth 1.5pp -1.0pp Operating profit growth (non-IFRS) 1.0pp -2.0pp This includes an exchange rate of 1.14 USD per EUR. Appendix