Interim report
Page 1
Quarterly Statement Q3 2026 1/23 Current cloud backlog of €24.1 billion, up 28% and up 26% at constant currencies Cloud revenue up 26% and up 25% at constant currencies Cloud ERP Suite revenue up 29% and up 28% at constant currencies Total revenue up 13% and up 12% at constant currencies IFRS operating profit up 18%, non-IFRS operating profit up 18%, both at nominal and constant currencies SAP updates its 2026 cloud revenue and cloud and software revenue outlook Christian Klein, CEO: Q3 was an outstanding quarter, with current cloud backlog up 26% at constant currencies. Our Autonomous Enterprise strategy is not just resonating, it is being adopted. Our customers are investing in the technology behind it – from the cloud and data foundation to our Business AI. They see that Joule Work makes the business case for their transformation more attractive than ever. Dominik Asam, CFO: For the first time, SAP crossed €10 billion in total quarterly revenue and €3 billion of non-IFRS operating profit, reflecting the strength and scalability of our business model. Our disciplined approach to cost management, paired with continued cloud momentum, demonstrates our ability to grow both the top and bottom line at the same time. Quarterly Statement Q3 2026
Page 2
Quarterly Statement Q3 2026 2/23 Walldorf, Germany – October 21, 2026 SAP SE (NYSE: SAP) announced today its financial results for the third quarter ended September 30, 2026. Group Results at a Glance Third quarter 2026 IFRS Non-IFRS1 € million, unless otherwise stated Q3 2026 Q3 2025 ∆ in % Q3 2026 Q3 2025 ∆ in % ∆ in % const. curr. Current cloud backlog 24,144 18,839 28 26 SaaS/PaaS2 6,612 5,212 27 6,612 5,212 27 26 Thereof Cloud ERP Suite2 5,924 4,586 29 5,924 4,586 29 28 Thereof Extension Suite2 688 627 10 688 627 10 8 IaaS2 56 78 –27 56 78 –27 –27 Cloud revenue 6,668 5,290 26 6,668 5,290 26 25 Software licenses revenue 147 161 –9 147 161 –9 –9 Software support revenue 2,434 2,565 –5 2,434 2,565 –5 –6 Cloud and software revenue 9,249 8,016 15 9,249 8,016 15 14 Services Revenue 1,021 1,060 –4 1,021 1,060 –4 –5 Total revenue 10,270 9,076 13 10,270 9,076 13 12 Cloud gross profit 4,930 3,948 25 4,956 3,972 25 24 Cloud gross margin (in %) 73.9 74.6 –0.7pp 74.3 75.1 –0.8pp –0.7pp Gross profit 7,510 6,671 13 7,543 6,696 13 12 Gross margin (in %) 73.1 73.5 –0.4pp 73.4 73.8 –0.3pp –0.3pp Operating profit (loss) 2,930 2,487 18 3,030 2,566 18 18 Operating margin (in %) 28.5 27.4 1.1pp 29.5 28.3 1.2pp 1.5pp Profit (loss) after tax 2,269 2,051 11 2,171 1,852 17 Earnings per share - Basic (in €) 1.96 1.72 14 1.89 1.59 19 Net cash flows from operating activities 1,920 1,502 28 Free cash flow 1,718 1,266 36 1 For a breakdown of the individual adjustments see table Non-IFRS Operating Expense Adjustments by Functional Areas in this Quarterly Statement. 2 For a definition of Cloud ERP Suite and Extension Suite, see the Performance Management System chapter in the 2025 Integrated Report. For an Explanation of IaaS, SaaS, and PaaS, see the Notes to the Consolidated Financial Statements of the Integrated Report 2025, Note (A.1).
Page 3
Quarterly Statement Q3 2026 3/23 Nine months ended September 2026 IFRS Non-IFRS1 € million, unless otherwise stated Q1–Q3 2026 Q1–Q3 2025 ∆ in % Q1–Q3 2026 Q1–Q3 2025 ∆ in % ∆ in % const. curr. Current cloud backlog 24,144 18,839 28 26 SaaS/PaaS2 18,724 15,148 24 18,724 15,148 24 26 Thereof Cloud ERP Suite2 16,662 13,258 26 16,662 13,258 26 28 Thereof Extension Suite2 2,062 1,889 9 2,062 1,889 9 11 IaaS2 187 266 –29 187 266 –29 –28 Cloud revenue 18,911 15,413 23 18,911 15,413 23 25 Software licenses revenue 395 538 –27 395 538 –27 –26 Software support revenue 7,342 7,969 –8 7,342 7,969 –8 –6 Cloud and software revenue 26,648 23,920 11 26,648 23,920 11 14 Services Revenue 3,055 3,196 –4 3,055 3,196 –4 –3 Total revenue 29,703 27,116 10 29,703 27,116 10 12 Cloud gross profit 14,044 11,501 22 14,124 11,573 22 25 Cloud gross margin (in %) 74.3 74.6 –0.4pp 74.7 75.1 –0.4pp –0.5pp Gross profit 21,710 19,898 9 21,806 19,971 9 11 Gross margin (in %) 73.1 73.4 –0.3pp 73.4 73.6 –0.2pp –0.3pp Operating profit (loss) 8,313 7,276 14 8,639 7,590 14 17 Operating margin (in %) 28.0 26.8 1.2pp 29.1 28.0 1.1pp 1.3pp Profit (loss) after tax 6,424 5,596 15 6,001 5,280 14 Earnings per share - Basic (in €) 5.50 4.70 17 5.20 4.53 15 Net cash flows from operating activities 8,586 7,859 9 Free cash flow 7,968 7,205 11 1 For a breakdown of the individual adjustments see table Non-IFRS Operating Expense Adjustments by Functional Areas in this Quarterly Statement. 2 For a definition of Cloud ERP Suite and Extension Suite, see the Performance Management System chapter in the 2025 Integrated Report. For an Explanation of IaaS, SaaS, and PaaS, see the Notes to the Consolidated Financial Statements of the Integrated Report 2025, Note (A.1). Supplementary Information1 Financial Results Cloud revenue growth was positively impacted by several quarter-specific effects, mainly a multi-quarter revenue catch-up from customers returning from financial distress. T otal revenue in the third quarter included a contribution of €49 million from the acquisitions of Reltio, Dremio, and Prior Labs. IFRS and non-IFRS operating profit included a negative contribution of €59 million and €39 million, respectively, from the aforementioned acquisitions. In addition, IFRS and non-IFRS operating profit growth benefited from prior year negative impacts of €0.1 billion each from a change in case law affecting SAP's other tax litigation and from a workforce transformation, both recorded in the third quarter of 2025. Share Repurchase Program In January 2026, SAP announced a new share repurchase program with an aggregate volume of up to €10 billion and a term until December 31, 2027. As of September 30, 2026, SAP had repurchased 25,205,983 shares at an average price of €164.79 resulting in a purchased volume of approximately €4.2 billion under the program. 1 The Q3 2026 results were also impacted by other effects. For details, please refer to the disclosures on page 21 of this document.
Page 4
Quarterly Statement Q3 2026 4/23 Outlook Financial Outlook For 2026, SAP is updating its cloud revenue and cloud and software revenue outlook and now expects: • To generate cloud revenue towards the upper end of the outlook range of €25.8 – 26.2 billion at constant currencies (2025: €21.02 billion), up 23% to 25% at constant currencies. • To generate cloud and software revenue towards the upper end of the outlook range of €36.3 – 36.8 billion at constant currencies (2025: €32.54 billion), up 12% to 13% at constant currencies. SAP continues to expect: • €11.8 – 12.2 billion operating profit (non-IFRS) at constant currencies (2025: €10.42 billion), up 13% to 17% at constant currencies. • Approximately €10 billion free cash flow at actual currencies (2025: €8.24 billion). • An effective tax rate (non-IFRS) of approximately 29% (2025: 30.5%)2. • Constant currencies current cloud backlog growth to slightly decelerate (2025: 25%). 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. SAP's current cloud backlog outlook for full-year 2026 is based on the assumption of a stable macroeconomic environment in the fourth quarter. 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. Currency Impact Assuming September 30, 2026 Rates Apply for 2026 In percentage points Q4 2026 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. 2 The effective tax rate (non-IFRS) is a non-IFRS financial measure and is presented for supplemental informational purposes only. We do not provide an outlook for the ef fective tax rate (IFRS) due to the uncertainty and potential variability of gains and losses associated with equity securities, which are reconciling items between the two effective tax rates (non - IFRS and IFRS). These items cannot be provided without unreasonable efforts but could have a significant impact on our future effective tax rate (IFRS).
Page 5
Quarterly Statement Q3 2026 5/23 Non-Financial Outlook For 2026, SAP continues to expect: • Cloud Customer Satisfaction (Cloud CSAT) to be in a range of 75% to 76% (2025: 75%). • The Employee Engagement Index to be in a range of 74% to 78% (2025: 76%). • The Business Health Culture Index (BHCI) to be in a range of 80% to 82% (2025: 81%). • To steadily decrease carbon emissions across the relevant value chain (2025: 3.6 Mt). Business Highlights In the third quarter, customers around the globe continued to choose the “RISE with SAP” journey. These customers included: AstraZeneca, Aydem Enerji, Banco Bilbao, Fairstone Bank of Canada, Grupo SBF, Infineon Technologies, Nagel Group Logistics, and NTN Corporation. A5X, Bitzer, BLACKROLL, Greenbrier Maxion (GBMX), Krannich Solar Group, Petroplus, Rittal, and SUZHOU ELE.MFG chose “SAP GROW”. Austrian Post (Österreichische Post), Commerz Real, Decathlon, Fraport, Henkel, MAN INDUSTRIES LIMITED, and Toyota Motor Philippines Corporation chose SAP’s AI and data solutions. Key customer wins across SAP’s solution portfolio included: Chery Automobile, DOUGLAS Group, Helvetia Holding, Kao Corporation, NTT DATA, Tauranga City Council, and Wipro. Bertelsmann, Eldorado Brasil, enersuisse, HUGO BOSS, Infineum, Infosys, Mondelez, Panasonic, Roche, and Thalia Bücher went live on SAP solutions in the third quarter. In the third quarter, SAP’s cloud revenue performance was particularly strong in AP J and EMEA and solid in the Americas region. Brazil, France, Germany, Italy, India, South Korea and Spain had outstanding performance, while Switzerland, the United Kingdom and the U.S. were particularly strong. On July 6, SAP announced that it has completed the acquisition of Dremio, an open, high-performance data lakehouse platform. On July 17, SAP announced that it has completed the acquisition of Prior Labs, the pioneer of Tabular Foundation Models (TFMs). On October 6, SAP showcased the Autonomous Enterprise in action at SAP Connect, demonstrating how Joule Work and Joule Assistants generate value for customers across every line of business. In addition, SAP announced that they entered into an agreement for SAP to acquire TechWolf, a provider of a leading AI work intelligence platform.
Page 6
Quarterly Statement Q3 2026 6/23 Additional Information This quarterly statement and all information therein are preliminary and unaudited. Due to rounding, numbers may not add up precisely. The Q3 2026 Quarterly Statement can be downloaded from: https://www.sap.com/docs/download/investors/2026/sap- 2026-q3-statement.pdf. SAP Performance Measures For more information about our key growth metrics and performance measures, their calculation, their usefulness, and their limitations, please refer to the following document on our Investor Relations website: https://www.sap.com/investors/en/financial- documents-and-events/reporting-framework.html. Webcast SAP senior management will host a financial analyst conference call on Wednesday, October 21st at 11:00 PM (CEST) / 10:00 PM (BST) / 5:00 PM (EDT) / 2:00 PM (PDT). The conference will be webcast on the Company’s website at https://www.sap.com/investor and will be available for replay. Supplementary financial information pertaining to the third quarter results can be found at https://www.sap.com/investor. About SAP As a global leader in enterprise applications and business AI, SAP (NYSE: SAP) stands at the nexus of business and technology. For over 50 years, organizations have trusted SAP to bring out their best by uniting business-critical operations spanning finance, procurement, HR, supply chain, and customer experience. For more information, visit www.sap.com. For more information, financial community only: Alexandra Steiger +49 (6227) 7-767336 investor@sap.com, CET Follow SAP Investor Relations on LinkedIn at SAP Investor Relations. For more information, press only: Aimée Leabon +1 (212) 653-9600 aimee.leabon@sap.com, EDT Marcus Winkler +49 (6227) 7-67497 marcus.winkler@sap.com, CET Daniel Reinhardt +49 (6227) 7-40201 daniel.reinhardt@sap.com, CET For customers interested in learning more about SAP products: Global Customer Center: +49 180 534-34-24 United States Only: +1 (800) 872-1SAP (+1-800-872-1727) Note to editors: To preview and download broadcast-standard stock footage and press photos digitally, please visit www.sap.com/photos. On this platform, you can find high resolution material for your media channels. This document contains 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. © 2026 SAP SE. All rights reserved. SAP and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP SE in Germany and other countries. Please see https://www.sap.com/copyright for additional trademark information and notices.
Page 7
Quarterly Statement Q3 2026 7/23 Contents Primary Financial Statements of SAP Group (IFRS) 8 (A) Consolidated Income Statements ............................................................................................................................................................................... 8 (B) Consolidated Statements of Financial Position ........................................................................................................................................... 10 (C) Consolidated Statements of Cash Flows ........................................................................................................................................................... 11 Non-IFRS Numbers 12 (D) Basis of Non-IFRS Presentation .................................................................................................................................................................................. 12 (E) Reconciliation from Non-IFRS Numbers to IFRS Numbers ............................................................................................................... 12 (F) Non-IFRS Adjustments – Actuals and Estimates ........................................................................................................................................ 16 (G) Non-IFRS Operating Expense Adjustments by Functional Areas ................................................................................................ 16 Disaggregations 17 (H) Segment Reporting ................................................................................................................................................................................................................. 17 (I) Revenue by Region (IFRS and Non-IFRS) .......................................................................................................................................................... 19 (J) Employees by Region and Functional Areas .................................................................................................................................................. 20 Other Disclosures 21 (K) Share-Based Payment Expenses ............................................................................................................................................................................... 21 (L) Teradata Litigation Matter .................................................................................................................................................................................................. 21 (M) Business Combinations ...................................................................................................................................................................................................... 21 (N) 2027 Reporting Changes ................................................................................................................................................................................................... 22
Page 8
Quarterly Statement Q3 2026 8/23 Primary Financial Statements of SAP Group (IFRS) (A) Consolidated Income Statements (A.1) Consolidated Income Statements – Quarter € millions, unless otherwise stated Q3 2026 Q3 2025 ∆ in % Cloud 6,668 5,290 26 Software licenses 147 161 –9 Software support 2,434 2,565 –5 Software licenses and support 2,581 2,726 –5 Cloud and software 9,249 8,016 15 Services 1,021 1,060 –4 Total revenue 10,270 9,076 13 Cost of cloud –1,738 –1,342 29 Cost of software licenses and support –263 –303 –13 Cost of cloud and software –2,001 –1,645 22 Cost of services –760 –760 0 Total cost of revenue –2,761 –2,405 15 Gross profit 7,510 6,671 13 Research and development –1,865 –1,644 13 Sales and marketing –2,283 –2,185 5 General and administration –412 –364 13 Restructuring 3 18 –81 Other operating income/expense, net –23 –8 >100 Total operating expenses –7,341 –6,589 11 Operating profit (loss) 2,930 2,487 18 Other non-operating income/expense, net –24 46 N/A Finance income 383 524 –27 Finance costs –287 –312 –8 Financial income, net 96 212 –55 Profit (loss) before tax 3,002 2,745 9 Income tax expense –734 –694 6 Profit (loss) after tax 2,269 2,051 11 Attributable to owners of parent 2,249 2,004 12 Attributable to non-controlling interests 20 47 –58 Earnings per share, basic (in €) 1 1.96 1.72 14 Earnings per share, diluted (in €) 1 1.94 1.71 14 1 For the three months ended September 30, 2026 and 2025, the weighted average number of shares was 1,150 million (diluted 1,157 million) and 1,164 million (diluted: 1,172 million), respectively (treasury stock excluded).
Page 9
Quarterly Statement Q3 2026 9/23 (A.2) Consolidated Income Statements – Year-to-Date € millions, unless otherwise stated Q1–Q3 2026 Q1–Q3 2025 ∆ in % Cloud 18,911 15,413 23 Software licenses 395 538 –27 Software support 7,342 7,969 –8 Software licenses and support 7,736 8,507 –9 Cloud and software 26,648 23,920 11 Services 3,055 3,196 –4 Total revenue 29,703 27,116 10 Cost of cloud –4,867 –3,912 24 Cost of software licenses and support –822 –909 –10 Cost of cloud and software –5,689 –4,821 18 Cost of services –2,304 –2,397 –4 Total cost of revenue –7,992 –7,218 11 Gross profit 21,710 19,898 9 Research and development –5,411 –4,935 10 Sales and marketing –6,738 –6,576 2 General and administration –1,174 –1,083 8 Restructuring –16 0 >100 Other operating income/expense, net –58 –27 >100 Total operating expenses –21,390 –19,840 8 Operating profit (loss) 8,313 7,276 14 Other non-operating income/expense, net –39 53 N/A Finance income 1,383 1,246 11 Finance costs –902 –859 5 Financial income, net 481 387 24 Profit (loss) before tax 8,755 7,715 13 Income tax expense –2,331 –2,119 10 Profit (loss) after tax 6,424 5,596 15 Attributable to owners of parent 6,360 5,481 16 Attributable to non-controlling interests 63 115 –45 Earnings per share, basic (in €) 1 5.50 4.70 17 Earnings per share, diluted (in €) 1 5.48 4.67 17 1 For the first nine months of 2026 and 2025, the weighted average number of shares was 1,155 million (diluted: 1,161 million) and 1,166 million (diluted: 1,175 million), respectively (treasury stock excluded).
Page 10
Quarterly Statement Q3 2026 10/23 (B) Consolidated Statements of Financial Position as at 9/30/2026 and 12/31/2025 € millions 2026 2025 Cash and cash equivalents 9,364 8,220 Other financial assets 1,633 1,552 Trade and other receivables 6,976 6,666 Other non-financial assets 3,339 3,212 Tax assets 804 598 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 financial assets 8,300 7,269 Trade and other receivables 163 218 Other non-financial assets 4,495 4,419 Tax assets 332 244 Deferred tax assets 2,371 2,167 Total non-current assets 54,221 50,111 Total assets 76,336 70,358 € millions 2026 2025 Trade and other payables 3,002 2,433 Tax liabilities 1,571 968 Financial liabilities 2,053 2,050 Other non-financial liabilities 4,218 4,848 Provisions 108 538 Contract liabilities 8,158 6,574 Total current liabilities 19,110 17,409 Trade and other payables 1 2 Tax liabilities 581 562 Financial liabilities 8,535 6,021 Other non-financial liabilities 548 524 Provisions 629 550 Deferred tax liabilities 259 74 Contract liabilities 213 144 Total non-current liabilities 10,765 7,875 Total liabilities 29,875 25,284 Issued capital 1,229 1,229 Share premium 3,194 2,778 Retained earnings 50,824 47,345 Other components of equity 1,295 182 Treasury shares –10,593 –6,948 Equity attributable to owners of parent 45,948 44,586 Non-controlling interests 513 488 Total equity 46,461 45,073 Total equity and liabilities 76,336 70,358
Page 11
Quarterly Statement Q3 2026 11/23 (C) Consolidated Statements of Cash Flows € millions Q1–Q3 2026 Q1–Q3 2025 Profit (loss) after tax 6,424 5,596 Adjustments to reconcile profit (loss) after tax to net cash flows from operating activities: Depreciation and amortization 954 986 Share-based payment expense 1,227 1,379 Income tax expense 2,331 2,119 Financial income, net –481 –387 Increase/decrease in allowances on trade receivables 54 10 Other adjustments for non-cash items –31 –3 Increase/decrease in trade and other receivables –142 679 Increase/decrease in other assets –55 –365 Increase/decrease in trade payables, provisions, and other liabilities –564 –1,676 Increase/decrease in contract liabilities 1,371 1,492 Share-based payments –440 –691 Income taxes paid, net of refunds –2,063 –1,280 Net cash flows from operating activities 8,586 7,859 Business combinations, net of cash and cash equivalents acquired –1,829 –700 Purchase of intangible assets and property, plant, and equipment –521 –559 Proceeds from sales of intangible assets and property, plant, and equipment 85 110 Purchase of equity or debt instruments of other entities –3,540 –4,369 Proceeds from sales of equity or debt instruments of other entities 3,236 4,454 Interest received 236 317 Net cash flows from investing activities –2,332 –747 Dividends paid –2,883 –2,743 Dividends paid on non-controlling interests –35 –3 Purchase of treasury shares –4,124 –1,937 Proceeds from borrowings 4,663 2 Repayments of borrowings –2,278 –2,106 Payments of lease liabilities –182 –204 Interest paid –388 –451 Net cash flows from financing activities –5,227 –7,442 Effect of foreign currency rates on cash and cash equivalents 118 –726 Net increase/decrease in cash and cash equivalents 1,144 –1,055 Cash and cash equivalents at the beginning of the period 8,220 9,609 Cash and cash equivalents at the end of the period 9,364 8,554
Page 12
Quarterly Statement Q3 2026 12/23 Non-IFRS Numbers (D) Basis of Non-IFRS Presentation We disclose certain financial measures that are not prepared in accordance with IFRS and are therefore considered non-IFRS financial measures. Our non-IFRS financial measures may not correspond to non-IFRS financial measures that other companies report. The non-IFRS financial measures that we report should only be considered in addition to, and not as substitutes for, nor as superior to, our IFRS financial measures. We believe that the supplemental historical and prospective non-IFRS financial information we disclose is useful information to investors because it is used by our management, in addition to financial data prepared in accordance with IFRS, to gain a more transparent understanding of our past performance and our anticipated future results. For a more detailed description of all of SAP’s non-IFRS measures and their limitations as well as SAP’s constant currency and free cash flow figures, see Explanation of Non-IFRS Measures. (E) Reconciliation from Non-IFRS Numbers to IFRS Numbers (E.1) Reconciliation of Non-IFRS Revenue – Quarter € millions, unless otherwise stated Q3 2026 Q3 2025 ∆ in % IFRS Currency Impact Non-IFRS Constant Currency IFRS IFRS Non-IFRS Constant Currency Revenue Numbers Cloud 6,668 –55 6,613 5,290 26 25 Software licenses 147 –1 146 161 –9 –9 Software support 2,434 –18 2,416 2,565 –5 –6 Software licenses and support 2,581 –19 2,562 2,726 –5 –6 Cloud and software 9,249 –74 9,175 8,016 15 14 Services 1,021 –10 1,011 1,060 –4 –5 Total revenue 10,270 –84 10,186 9,076 13 12
Page 13
Quarterly Statement Q3 2026 13/23 (E.2) Reconciliation of Non-IFRS Operating Expenses – Quarter € millions, unless otherwise stated Q3 2026 Q3 2025 ∆ in % IFRS Adj. Non-IFRS Currency Impact Non-IFRS Constant Currency IFRS Adj. Non-IFRS IFRS Non-IFRS Non-IFRS Constant Currency Operating Expense Numbers Cost of cloud –1,738 26 –1,712 –1,342 24 –1,318 29 30 Cost of software licenses and support –263 8 –255 –303 0 –303 –13 –16 Cost of cloud and software –2,001 34 –1,967 –1,645 24 –1,622 22 21 Cost of services –760 0 –760 –760 0 –759 0 0 Total cost of revenue –2,761 34 –2,727 –2,405 24 –2,381 15 15 Gross profit 7,510 34 7,543 –56 7,487 6,671 24 6,696 13 13 12 Research and development –1,865 2 –1,863 –1,644 1 –1,643 13 13 Sales and marketing –2,283 56 –2,228 –2,185 67 –2,118 5 5 General and administration –412 12 –400 –364 4 –360 13 11 Restructuring 3 –3 0 18 –18 0 –81 N/A Other operating income/expense, net –23 0 –23 –8 0 –8 >100 >100 Total operating expenses –7,341 100 –7,241 83 –7,158 –6,589 79 –6,510 11 11 10 (E.3) Reconciliation of Non-IFRS Profit Figures, Income Tax, and Key Ratios – Quarter € millions, unless otherwise stated Q3 2026 Q3 2025 ∆ in % IFRS Adj. Non- IFRS Currency Impact Non-IFRS Constant Currency IFRS Adj. Non-IFRS IFRS Non-IFRS Non-IFRS Constant Currency Profit Numbers Operating profit (loss) 2,930 100 3,030 –1 3,029 2,487 79 2,566 18 18 18 Other non-operating income/expense, net –24 0 –24 46 0 46 N/A N/A Finance income 383 –290 93 524 –348 175 –27 –47 Finance costs –287 114 –173 –312 93 –219 –8 –21 Financial income, net 96 –176 –80 212 –256 –44 –55 84 Profit (loss) before tax 3,002 –76 2,926 2,745 –177 2,569 9 14 Income tax expense –734 –22 –755 –694 –22 –717 6 5 Profit (loss) after tax 2,269 –98 2,171 2,051 –199 1,852 11 17 Attributable to owners of parent 2,249 –72 2,177 2,004 –158 1,846 12 18 Attributable to non-controlling interests 20 –26 –6 47 –41 6 –58 N/A Key Ratios Operating margin (in %) 28.5 29.5 29.7 27.4 28.3 1.1pp 1.2pp 1.5pp Effective tax rate (in %)1 24.4 25.8 25.3 27.9 –0.9pp –2.1pp Earnings per share, basic (in €) 1.96 1.89 1.72 1.59 14 19 1 In Q3 2026 and Q3 2025 the difference between our IFRS effective tax rate and non-IFRS effective tax rate mainly resulted from tax effects of equity securities.
Page 14
Quarterly Statement Q3 2026 14/23 (E.4) Reconciliation of Non-IFRS Revenue – Year-to-Date € millions, unless otherwise stated Q1–Q3 2026 Q1–Q3 2025 ∆ in % IFRS Currency Impact Non-IFRS Constant Currency IFRS IFRS Non-IFRS Constant Currency Revenue Numbers Cloud 18,911 409 19,320 15,413 23 25 Software licenses 395 6 400 538 –27 –26 Software support 7,342 127 7,469 7,969 –8 –6 Software licenses and support 7,736 132 7,869 8,507 –9 –7 Cloud and software 26,648 541 27,189 23,920 11 14 Services 3,055 56 3,111 3,196 –4 –3 Total revenue 29,703 597 30,300 27,116 10 12 (E.5) Reconciliation of Non-IFRS Operating Expenses – Year-to-Date € millions, unless otherwise stated Q1–Q3 2026 Q1–Q3 2025 ∆ in % IFRS Adj. Non-IFRS Currency Impact Non-IFRS Constant Currency IFRS Adj. Non-IFRS IFRS Non-IFRS Non-IFRS Constant Currency Operating Expense Numbers Cost of cloud –4,867 80 –4,787 –3,912 71 –3,841 24 25 Cost of software licenses and support –822 17 –805 –909 0 –909 –10 –11 Cost of cloud and software –5,689 96 –5,592 –4,821 71 –4,750 18 18 Cost of services –2,304 0 –2,304 –2,397 1 –2,396 –4 –4 Total cost of revenue –7,992 96 –7,896 –7,218 73 –7,146 11 11 Gross profit 21,710 96 21,806 426 22,233 19,898 73 19,971 9 9 11 Research and development –5,411 4 –5,407 –4,935 4 –4,931 10 10 Sales and marketing –6,738 170 –6,569 –6,576 230 –6,346 2 4 General and administration –1,174 40 –1,133 –1,083 6 –1,077 8 5 Restructuring –16 16 0 0 0 0 >100 N/A Other operating income/expense, net –58 0 –58 –27 0 –27 >100 >100 Total operating expenses –21,390 327 –21,063 –356 –21,420 –19,840 314 –19,527 8 8 10
Page 15
Quarterly Statement Q3 2026 15/23 (E.6) Reconciliation of Non-IFRS Profit Figures, Income Tax, and Key Ratios – Year-to-Date € millions, unless otherwise stated Q1–Q3 2026 Q1–Q3 2025 ∆ in % IFRS Adj. Non-IFRS Currency Impact Non-IFRS Constant Currency IFRS Adj. Non-IFRS IFRS Non-IFRS Non-IFRS Constant Currency Profit Numbers Operating profit (loss) 8,313 327 8,639 241 8,880 7,276 314 7,590 14 14 17 Other non-operating income/expense, net –39 0 –39 53 0 53 N/A N/A Finance income 1,383 –1,100 284 1,246 –840 406 11 –30 Finance costs –902 420 –482 –859 285 –575 5 –16 Financial income, net 481 –680 –199 387 –555 –168 24 18 Profit (loss) before tax 8,755 –353 8,401 7,715 –241 7,474 13 12 Income tax expense –2,331 –70 –2,401 –2,119 –75 –2,194 10 9 Profit (loss) after tax 6,424 –423 6,001 5,596 –316 5,280 15 14 Attributable to owners of parent 6,360 –351 6,009 5,481 –203 5,278 16 14 Attributable to non-controlling interests 63 –72 –9 115 –114 2 –45 N/A Key Ratios Operating margin (in %) 28.0 29.1 29.3 26.8 28.0 1.2pp 1.1pp 1.3pp Effective tax rate (in %)1 26.6 28.6 27.5 29.4 –0.8pp –0.8pp Earnings per share, basic (in €) 5.50 5.20 4.70 4.53 17 15 1 In the first nine months of 2026 and 2025 the difference between our IFRS effective tax rate and non-IFRS effective tax rate mainly resulted from tax effects of equity securities. (E.7) Reconciliation of Free Cash Flow € millions, unless otherwise stated Q1–Q3 2026 Q1–Q3 2025 Net cash flows from operating activities 8,586 7,859 Purchase of intangible assets and property, plant, and equipment –521 –559 Proceeds from sales of intangible assets and property, plant, and equipment 85 110 Payments of lease liabilities –182 –204 Free cash flow 7,968 7,205 Net cash flows from investing activities –2,332 –747 Net cash flows from financing activities –5,227 –7,442
Page 16
Quarterly Statement Q3 2026 16/23 (F) Non-IFRS Adjustments – Actuals and Estimates € millions, unless otherwise stated Estimated Amounts for Full Year 2026 Q3 2026 Q1–Q3 2026 Q3 2025 Q1–Q3 2025 Profit (loss) before tax (IFRS) 3,002 8,755 2,745 7,715 Adjustment for acquisition-related charges 340–420 104 281 96 313 Adjustment for restructuring expenses 0–20 –3 16 –18 0 Adjustment for the Teradata litigation expenses 29 0 29 0 0 Adjustment for gains and losses from equity securities, net N/A1 –176 –680 –256 –555 Profit (loss) before tax (non-IFRS) 2,926 8,401 2,569 7,474 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. (G) Non-IFRS Operating Expense Adjustments by Functional Areas Q3 2026 Q3 2025 € millions IFRS Acquisition- Related Restruc- turing Teradata litigation Non-IFRS IFRS Acquisition- Related Restruc- turing Teradata litigation Non-IFRS Cost of cloud –1,738 26 0 0 –1,712 –1,342 24 0 0 –1,318 Cost of software licenses and support –263 8 0 0 –255 –303 0 0 0 –303 Cost of services –760 0 0 0 –760 –760 0 0 0 –759 Research and development –1,865 2 0 0 –1,863 –1,644 1 0 0 –1,643 Sales and marketing –2,283 56 0 0 –2,228 –2,185 67 0 0 –2,118 General and administration –412 12 0 0 –400 –364 4 0 0 –360 Restructuring 3 0 –3 0 0 18 0 –18 0 0 Other operating income/expense, net –23 0 0 0 –23 –8 0 0 0 –8 Total operating expenses –7,341 104 –3 0 –7,241 –6,589 96 –18 0 –6,510 € millions Q1–Q3 2026 Q1–Q3 2025 IFRS Acquisition- Related Restruc- turing Teradata litigation Non-IFRS IFRS Acquisition- Related Restruc- turing Teradata litigation Non-IFRS Cost of cloud –4,867 71 0 9 –4,787 –3,912 71 0 0 –3,841 Cost of software licenses and support –822 8 0 9 –805 –909 0 0 0 –909 Cost of services –2,304 0 0 0 –2,304 –2,397 1 0 0 –2,396 Research and development –5,411 4 0 0 –5,407 –4,935 4 0 0 –4,931 Sales and marketing –6,738 170 0 0 –6,569 –6,576 230 0 0 –6,346 General and administration –1,174 29 0 12 –1,133 –1,083 6 0 0 –1,077 Restructuring –16 0 16 0 0 0 0 0 0 0 Other operating income/expense, net –58 0 0 0 –58 –27 0 0 0 –27 Total operating expenses –21,390 281 16 29 –21,063 –19,840 313 0 0 –19,527
Page 17
Quarterly Statement Q3 2026 17/23 Disaggregations (H) Segment Reporting (H.1) Segment Policies and Changes At the end of the third quarter of 2026, SAP had two operating segments: the Applications, Technology & Support (ATS) segment and the Core Services segment: – The ATS segment represents SAP’s cohesive product portfolio, which is holistically steered and commercialized. It primarily generates revenue from cloud subscriptions and from the sale of software licenses and support offerings, and it incurs cost for support, operating our solutions, and the provision of infrastructure. Revenue and the cost of services arise from SAP’s training business, which is highly integrated with SAP’s product portfolio. Dremio and Prior Labs are newly acquired companies and are each part of the ATS segment, as their respective platforms are intended to become core capabilities within SAP's product portfolio. – The Core Services segment supports SAP’s product portfolio by enabling customers to transform their business and accelerate the adoption of innovations. Revenues are mainly generated from professional consulting services and premium support services. Cost is incurred primarily for the delivery of those services. The Core Services segment does not reflect the full services business. (H.2) Segment Reporting – Quarter Applications, Technology & Support (ATS) € millions (non-IFRS) Q3 2026 Q3 2025 Actual Currency Constant Currency Actual Currency Cloud 6,668 6,613 5,290 Software licenses 147 146 161 Software support 2,434 2,416 2,565 Software licenses and support 2,581 2,562 2,726 Cloud and software 9,249 9,175 8,016 Services 48 48 64 Total segment revenue 9,297 9,223 8,080 Cost of cloud –1,626 –1,605 –1,283 Cost of software licenses and support –247 –244 –278 Cost of cloud and software –1,873 –1,849 –1,561 Cost of services –119 –117 –87 Total cost of revenue –1,992 –1,967 –1,648 Segment gross profit 7,304 7,256 6,432 Other segment expenses –3,498 –3,455 –3,096 Segment profit (loss) 3,807 3,802 3,336
Page 18
Quarterly Statement Q3 2026 18/23 Core Services € millions (non-IFRS) Q3 2026 Q3 2025 Actual Currency Constant Currency Actual Currency Services 974 964 996 Total segment revenue 974 964 996 Cost of cloud –64 –63 –24 Cost of software licenses and support –1 –1 –2 Cost of cloud and software –64 –63 –26 Cost of services –655 –648 –650 Total cost of revenue –720 –712 –676 Segment gross profit 254 252 320 Other segment expenses –141 –139 –132 Segment profit (loss) 113 113 188 (H.3) Segment Reporting – Year-to-Date Applications, Technology & Support € millions (non-IFRS) Q1–Q3 2026 Q1–Q3 2025 Actual Currency Constant Currency Actual Currency Cloud 18,911 19,320 15,413 Software licenses 395 400 538 Software support 7,342 7,469 7,969 Software licenses and support 7,736 7,869 8,507 Cloud and software 26,648 27,189 23,920 Services 171 173 211 Total segment revenue 26,819 27,362 24,131 Cost of cloud –4,526 –4,639 –3,716 Cost of software licenses and support –774 –786 –839 Cost of cloud and software –5,300 –5,425 –4,555 Cost of services –302 –305 –277 Total cost of revenue –5,602 –5,730 –4,832 Segment gross profit 21,217 21,632 19,300 Other segment expenses –10,274 –10,426 –9,535 Segment profit (loss) 10,942 11,206 9,765 Core Services € millions (non-IFRS) Q1–Q3 2026 Q1–Q3 2025 Actual Currency Constant Currency Actual Currency Services 2,884 2,938 2,985 Total segment revenue 2,884 2,938 2,985 Cost of cloud –180 –182 –78 Cost of software licenses and support –3 –3 –10 Cost of cloud and software –183 –185 –87 Cost of services –1,971 –1,999 –2,052 Total cost of revenue –2,154 –2,183 –2,139 Segment gross profit 730 754 846 Other segment expenses –416 –420 –399 Segment profit (loss) 315 334 447
Page 19
Quarterly Statement Q3 2026 19/23 (I) Revenue by Region (IFRS and Non-IFRS) (I.1) Revenue by Region (IFRS and Non-IFRS) – Quarter € millions Q3 2026 Q3 2025 ∆ in % Actual currency Currency Impact Constant Currency Actual currency Actual currency Constant Currency Cloud Revenue by Region EMEA 2,919 –15 2,903 2,271 28 28 Americas 2,774 –50 2,724 2,247 23 21 APJ 975 10 986 772 26 28 Cloud revenue 6,668 –55 6,613 5,290 26 25 Cloud and Software Revenue by Region EMEA 4,305 –21 4,284 3,750 15 14 Americas 3,593 –65 3,527 3,102 16 14 APJ 1,351 13 1,364 1,164 16 17 Cloud and software revenue 9,249 –74 9,175 8,016 15 14 Total Revenue by Region Germany 1,639 0 1,639 1,455 13 13 Rest of EMEA 3,129 –23 3,106 2,790 12 11 Total EMEA 4,768 –23 4,745 4,245 12 12 United States 3,194 –46 3,148 2,822 13 12 Rest of Americas 841 –27 814 724 16 12 Total Americas 4,035 –73 3,962 3,546 14 12 Japan 397 22 419 387 2 8 Rest of APJ 1,071 –10 1,061 898 19 18 Total APJ 1,467 12 1,480 1,285 14 15 Total revenue 10,270 –84 10,186 9,076 13 12 (I.2) Revenue by Region (IFRS and Non-IFRS) – Year-to-Date € millions Q1–Q3 2026 Q1–Q3 2025 ∆ in % Actual Currency Currency Impact Constant Currency Actual Currency Actual Currency Constant Currency Cloud Revenue by Region EMEA 8,240 29 8,269 6,466 27 28 Americas 7,921 234 8,154 6,693 18 22 APJ 2,751 146 2,896 2,255 22 28 Cloud revenue 18,911 409 19,320 15,413 23 25 Cloud and Software Revenue by Region EMEA 12,424 24 12,449 10,958 13 14 Americas 10,357 314 10,671 9,417 10 13 APJ 3,866 203 4,070 3,545 9 15 Cloud and software revenue 26,648 541 27,189 23,920 11 14 Total Revenue by Region Germany 4,725 3 4,728 4,247 11 11 Rest of EMEA 9,125 23 9,148 8,190 11 12 Total EMEA 13,850 26 13,876 12,436 11 12 United States 9,162 343 9,505 8,603 7 10 Rest of Americas 2,470 11 2,481 2,162 14 15 Total Americas 11,632 354 11,986 10,764 8 11 Japan 1,170 123 1,292 1,177 –1 10 Rest of APJ 3,051 95 3,146 2,739 11 15 Total APJ 4,220 218 4,438 3,916 8 13 Total revenue 29,703 597 30,300 27,116 10 12
Page 20
Quarterly Statement Q3 2026 20/23 (J) Employees by Region and Functional Areas Full-time equivalents 9/30/2026 9/30/2025 EMEA Americas APJ Total EMEA Americas APJ Total Cloud and software 4,751 4,592 5,620 14,964 4,600 4,514 5,348 14,462 Services 8,294 4,597 5,958 18,849 8,289 4,690 5,920 18,899 Research and development 18,863 5,978 13,894 38,735 18,375 5,895 13,639 37,909 Sales and marketing 12,417 10,034 5,074 27,524 11,951 9,923 5,039 26,914 General and administration 4,138 1,964 1,369 7,471 3,981 1,915 1,362 7,258 Infrastructure 3,276 1,167 1,090 5,533 3,143 1,152 993 5,289 SAP Group (9/30) 51,739 28,332 33,005 113,076 50,339 28,089 32,302 110,730 Thereof acquisitions1 202 365 238 805 288 74 13 375 SAP Group (nine months' end average) 51,258 28,044 32,477 111,780 49,328 27,794 31,581 108,702 1 Acquisitions closed between January 1 and September 30 of the respective year.
Page 21
Quarterly Statement Q3 2026 21/23 Other Disclosures (K) Share-Based Payment Expenses SAP’s share-based payment expenses included in SAP’s non-IFRS operating expenses break down as follows: € millions Q3 2026 Q1–Q3 2026 Q3 2025 Q1–Q3 2025 Cost of cloud –31 –84 –27 –86 Cost of software licenses and support –7 –20 –8 –24 Cost of services –62 –170 –64 –197 Research and development –195 –520 –156 –481 Sales and marketing –133 –358 –147 –478 General and administration –46 –75 –28 –112 Share-based payment expenses –474 –1,227 –429 –1,379 The decrease in share-based payment expenses is mainly related to SAP’s share price reduction of around €25 in the first nine months of 2026, as compared to a reduction of around €10 in the first nine months of 2025. For more information about share-based payment expenses, see the Notes to the Consolidated Half-Year Financial Statements 2026, Note (B.3). (L) Teradata Litigation Matter The Teradata litigation claims had been pending in the U.S. federal court since 2018 when Teradata Corporation, Teradata US, Inc. and Teradata Operations, Inc. (collectively “Teradata”) filed a civil lawsuit against SAP SE, SAP America, Inc. and SAP Labs, LLC. A provision of €387 million for a potential settlement amount and related legal fees had been recognized as of December 31, 2025. End of February 2026, SAP and Teradata settled the legal dispute and agreed to withdraw all pending lawsuits. As a result of the settlement, an additional expense of €29 million (Q1 2025: €0 million) was recorded. SAP paid the full settlement amount of US$480 million (€408 million) in March 2026. For more information about the Teradata litigation, see the Notes to the Consolidated Half-Year Financial Statements 2026, Note (G.1). (M) Business Combinations (M.1) Reltio On March 27, 2026, SAP announced its intention to acquire 100% of Reltio Inc. (“Reltio”), a leading master data management software provider, to help customers make their SAP and non-SAP enterprise data AI-ready. The transaction closed on May 7, 2026, following satisfaction of customary closing conditions and regulatory approvals. The consideration transferred amounted to US$1,259 million (€1,076 million) and the majority was paid in cash. The acquisition is expected to help SAP to strengthen SAP Business Data Cloud (SAP BDC) and accelerate the evolution of SAP BDC to a fully interoperable enterprise data platform for enterprise-wide agentic AI and accelerate its customers’ ability to govern and expose master data as trusted and context-rich data products across multiple sources that serve both traditional analytics workloads and AI agents. Given that the Reltio acquisition closed only recently, we are still in the process of identifying and measuring the Reltio assets and liabilities. Thus, the accounting for the Reltio acquisition is preliminary. This primarily relates to intangible assets and tax assets and liabilities, but also to certain acquisition accounting related matters such as the consideration transferred and certain accounting alignments. In the third quarter of 2026, the contribution of Reltio to revenue was approximately €39 million, to operating profit (IFRS) approximately €-17 million and operating profit (non-IFRS) approximately €-9 million. In the first nine months of 2026, the contribution of Reltio to revenue was approximately €64 million, to operating profit (IFRS) approximately €-30 million and operating profit (non-IFRS) approximately €-17 million.
Page 22
Quarterly Statement Q3 2026 22/23 For more information about the Reltio acquisition, see the Notes to the Consolidated Half-Year Financial Statements 2026, Note (D.1). (M.2) Dremio On May 4, 2026, SAP announced its intention to acquire 100% of Dremio Inc. ("Dremio"), an open, high-performance data lakehouse platform built to accelerate agentic AI and expand SAP Business Data Cloud's ability to combine SAP and non-SAP data to run analytical and AI workloads in real time. The transaction closed on July 6, 2026, following satisfaction of customary closing conditions and regulatory approvals. The preliminary consideration transferred amounted to approximately €515 million. The acquisition is expected to help SAP evolve SAP Business Data Cloud into an Apache Iceberg-native enterprise lakehouse, enabling SAP and non-SAP data to be analyzed together in real time without prior data movement or conversion and with substantially improved economics for enterprise analytics. Dremio's open catalog capabilities, based on Apache Polaris and the Apache Iceberg REST Catalog API, will further strengthen SAP Business Data Cloud and SAP HANA Cloud with enhanced data discovery, governance, and lineage management across heterogeneous enterprise data landscapes. Together, Dremio and SAP Business Data Cloud will provide AI agents with seamless, governed access to the full breadth of enterprise data, accelerating agentic AI at enterprise scale. Given that the Dremio acquisition closed only recently, we are still in the process of identifying and measuring the Dremio assets and liabilities. Thus, the accounting for the Dremio acquisition is preliminary. This primarily relates to intangible assets and tax assets and liabilities, but also to certain acquisition accounting-related matters such as the consideration transferred and certain accounting alignments. In the third quarter of 2026, the contribution of Dremio to revenue was approximately €9 million, to operating profit (IFRS) approximately €-18 million and operating profit (non-IFRS) approximately €-14 million. (M.3) Prior Labs On May 4, 2026, SAP announced its intention to acquire 100% of Prior Labs GmbH ("Prior Labs"), a pioneer in Tabular Foundation Models (TFMs), to accelerate SAP's development of AI models purpose-built for enterprise business data. The transaction closed on July 16, 2026, following satisfaction of customary closing conditions and regulatory approvals. The preliminary consideration transferred amounted to approximately €518 million. The acquisition is expected to help SAP accelerate its Tabular Foundation Model capabilities by bringing one of the world's leading TFM research teams in-house. Prior Labs' models are trained specifically on structured business data and are designed to improve the predictive accuracy and automation of core enterprise processes across SAP's application portfolio. The acquisition strengthens SAP's ability to embed AI natively into its business software and supports SAP's strategy to lead in enterprise AI at scale. Given that the Prior Labs acquisition closed only recently, we are still in the process of identifying and measuring the Prior Labs’ assets and liabilities. Thus, the accounting for the Prior Labs acquisition is preliminary. This primarily relates to intangible assets and tax assets and liabilities, but also to certain acquisition accounting-related matters such as the final consideration transferred. In the third quarter of 2026, the contribution of Prior Labs to revenue was less than €1 million. The contribution to operating profit (IFRS) was approximately €-24 million and operating profit (non-IFRS) approximately €-16 million. (N) 2027 Reporting Changes The following changes will be effective as of 2027. IFRS 18 “Presentation and Disclosure in Financial Statements” will become effective and replace IAS 1 “Presentation of Financial Statements” on January 1, 2027. The new standard will affect the presentation of our Consolidated Income Statements, introduce additional disclosure requirements, and further specify aggregation and disaggregation of information in our Notes to the Consolidated Financial Statements. For more information, see the Notes to the Consolidated Half-Year Financial Statements 2026, Note (IN.1). As a consequence of implementing IFRS 18, starting in 2027 SAP has decided to introduce two new non-IFRS adjustments. (N.1) Foreign Currency-Related Effects Starting in 2027, SAP will exclude foreign currency-related effects from its non-IFRS results. This adjustment will include realized and unrealized foreign currency effects arising mainly from balance sheet revaluations, as well as hedging of foreign exchange balance sheet exposure, hedging of foreign exchange cash flows, and other similar effects.
Page 23
Quarterly Statement Q3 2026 23/23 We will exclude foreign currency-related effects to ensure overall consistent treatment in our non-IFRS figures at constant currency. We believe this adjustment will improve period-over-period comparability by reducing the volatility that results from foreign exchange rate fluctuation, which is beyond our control, and making it easier to compare SAP’s operating performance with that of our US peers. (N.2) Interest Related to Taxes Starting in 2027, SAP will exclude interest related to taxes from its non-IFRS operating profit results. This adjustment will include interest income and interest expense related to income tax and other taxes. We will exclude interest related to taxes from our operating expense (non-IFRS) as these effects are not indicative of SAP’s core operating activities. In addition to operating profit (non-IFRS), the adjustments mentioned in (N.1) and (N.2) will also impact our profit before tax (non- IFRS), profit after tax (non-IFRS), and our non-IFRS key ratios such as operating margin, effective tax rate, and basic earnings per share.