SAP

- Interested in SAP SE? Here are five stocks we like better. - SAP delivered a strong Q3 2026: Cloud revenue rose 25% to €6.7 billion, total revenue increased 12% to a record €10.3 billion, and non-IFRS operating profit grew 18% to more than €3 billion. Current cloud backlog reached €24.1 billion, up 26% year over year at constant currencies. - Cloud ERP and AI remained key growth drivers. Cloud ERP revenue increased 28%, while customers continued adopting SAP's RISE and GROW offerings, Business Data Cloud and Joule AI tools to support enterprise transformations and AI initiatives. - SAP retained its 2026 outlook but flagged fourth-quarter execution risks. The company expects to finish near the upper end of its cloud revenue guidance, while macroeconomic uncertainty, a tougher comparison base and the importance of Q4 bookings could challenge its planned 2027 growth acceleration. - The Pre-IPO Playbook: How to Cash in on Anthropic Before the Bell SAP (NYSE:SAP) reported third-quarter 2026 results marked by double-digit cloud revenue and operating-profit growth, as the enterprise software company said demand for artificial intelligence capabilities, cloud migrations and its Business Data Cloud continued to support bookings. Chief Executive Officer Christian Klein called the period an "outstanding quarter," saying current cloud backlog reached €24.1 billion, up 26% year over year at constant currencies. Cloud revenue rose 25% to €6.7 billion, while total revenue increased 12% to €10.3 billion, surpassing €10 billion in quarterly revenue for the first time in SAP's history. → Aurora Rejects Curaleaf's Higher Bid, But the Takeover Fight Isn't Over - SAP Bets $1B on AI Acquisitions to Lock In Enterprise Data Non-IFRS operating profit rose 18% to more than €3 billion. SAP said nine of its 50 largest deals during the quarter included AI and Business Data Cloud offerings. Chief Financial Officer Dominik Asam said cloud ERP suite revenue grew 28% and represented 89% of total cloud revenue. Software licenses revenue declined 9%, while services revenue fell 5% at constant currencies. Despite the services decline, Asam said total revenue growth was "a remarkable result" given the changing mix of the business. → Could Quantinuum's Breakthrough Make Its Sell-Off a Bargain? - Giants Costco, Sanofi, and SAP Raise Dividends by Over 10% SAP reported particularly strong cloud revenue performance in Asia-Pacific Japan and Europe, the Middle East and Africa, with solid performance in the Americas. Brazil, France, Germany, Italy, India, South Korea and Spain delivered outstanding performance, according to Asam, while Switzerland, the U.K. and the U.S. were particularly strong. Klein said AI has become a major factor in customers' decisions to migrate to SAP's RISE and GROW cloud offerings. He said customers are using AI tools to accelerate transformations and migrations, while Business Data Cloud is being adopted as a data foundation for enterprise AI. → IonQ's Bold Expansion Could Leave Shareholders Paying the Price The company cited customer wins and deployments across industries, including BBVA, FirstBank of Canada, Infineon, Fraunhofer-Gesellschaft, NTN Corporation, AstraZeneca, Decathlon, Salling Group and Hengli. Klein also said companies including Mondelez, Panasonic, Roche and Infosys went live with RISE during the quarter. SAP emphasized its Joule Work offering, which Klein described as a workbench for the "autonomous enterprise." The platform allows users to interact with SAP systems through natural-language conversations, view data through Joule Spaces and develop or tailor AI agents through Joule Studio. Klein said SAP provides access to more than 70 frontier and open-weight AI models and does not intend to commit customers to a single preferred model. He said the company evaluates models based on performance, price and outcomes for individual AI-agent use cases. According to Klein, SAP's Business Data Cloud and knowledge graph map more than 7 million fields and 500,000 tables, along with 400 data products and process knowledge. He said the company's acquisitions of Reltio and LeanIX expand the context layer beyond SAP data, while SAP's intended acquisition of TechWolf would extend its capabilities into skills and workforce intelligence. Klein also stressed SAP's governance approach, stating that customer data and process intellectual property are not uploaded to large language models for training, model improvement or other purposes. SAP's AI Agent Hub in LeanIX is intended to provide an inventory for managing SAP and non-SAP agents, he said. SAP's IFRS cloud gross margin was 73.9%, while non-IFRS cloud gross margin was 74.3%, down 0.7 percentage points from a year earlier. IFRS operating profit increased 18% to €2.9 billion. Free cash flow totaled €1.7 billion in the quarter. IFRS earnings per share rose 14% to €1.96, while non-IFRS earnings per share increased 19% to €1.89. The company said it continues to invest in AI development and product enhancements while seeking to manage expenses in line with revenue growth. Klein said Joule Work Desktop is live for more than 110,000 SAP employees, with the company seeing productivity gains of 20% across central functions including finance, human resources and procurement. He added that SAP expects up to €3 billion in efficiency gains over the next two years through AI applications across engineering, sales, finance, HR and cloud operations. Asam said the company aims to contain total operating-expense growth, including cost of goods sold, to roughly 80% to 90% of top-line growth. SAP now expects to finish toward the upper end of its previously issued 2026 outlook for cloud revenue and cloud and software revenue. The company reaffirmed its guidance for current cloud backlog, operating profit and free cash flow. Asam said SAP still expects a slight deceleration in constant-currency current cloud backlog growth during 2026, citing macroeconomic and political uncertainty as well as a larger revenue base. He noted that the fourth quarter represents roughly 50% of SAP's annual bookings volume. The CFO said SAP continues to plan for an acceleration in total revenue growth in 2027, though he cautioned that fourth-quarter booking trends, macroeconomic conditions and the company's strategy of using services to drive cloud and AI adoption could make that trajectory more challenging. "We will put our full focus on the decisive fourth quarter bookings required to maintain our growth acceleration," Asam said. SAP SE is a global enterprise software company headquartered in Walldorf, Germany. Founded in 1972 by five former IBM employees, SAP originally developed software to help businesses integrate accounting and operational data. The company has since become a major provider of cloud-based business applications and enterprise technology. SAP's portfolio includes enterprise resource planning software, including SAP S/4HANA Cloud, along with solutions for finance, procurement, supply chain management, human resources, customer experience and business analytics. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "What SAP (SAP) Said on Its Q3 Earnings Call" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

SAP (NYSE:SAP) expects full-year 2026 cloud revenue and cloud and software revenue to reach the upper ends of its existing forecasts after quarterly revenue increased by 13% to €10.27 billion. The German enterprise software group's current cloud backlog, which measures contracted cloud business awaiting recognition as revenue, rose 28% to €24.1 billion in the three months to September, or 26% at constant currencies. Cloud revenue increased 26% to €6.67 billion, while revenue from the Cloud Enterprise Resource Planning (ERP) Suite grew 29% to €5.92 billion, reflecting continued demand for SAP's cloud-based business software. SAP now expects 2026 cloud revenue to be towards the upper end of its €25.8 billion to €26.2 billion forecast at constant currencies, representing growth of 23% to 25%. Cloud and software revenue is also expected to be towards the upper end of the €36.3 billion to €36.8 billion range, with growth of 12% to 13% at constant currency. The company maintained its forecast for adjusted operating profit of €11.8 billion to €12.2 billion, equivalent to a growth of 13% to 17% at constant currencies, and expects free cash flow of approximately €10 billion. SAP's third-quarter operating profit increased 18% to €2.93 billion under international financial reporting standards (IFRS), while adjusted operating profit rose 18% to €3.03 billion. Adjusted operating margin, which measures operating profit as a proportion of revenue, improved to 29.5% from 28.3% a year earlier, indicating stronger profitability alongside sales growth. However, cloud revenue growth benefited from a multi-quarter revenue catch-up from customers returning from financial distress, while operating profit growth also benefited from prior-year costs linked to tax litigation and workforce transformation. Profit after tax rose 11% to €2.27 billion, while basic earnings per share increased 14% to €1.96, and free cash flow for the quarter climbed 36% to €1.72 billion. For 2027, SAP expects total revenue growth at constant currencies to accelerate from 2026, although it anticipates operating expenses will increase by 80% to 90% of total revenue growth. The company also expects the rate of decline in software support revenue to accelerate over the coming years as more customers migrate to cloud services, highlighting the ongoing shift in its business model. SAP's 2026 cloud backlog outlook assumes a stable macroeconomic environment in the fourth quarter, leaving its near-term growth expectations dependent partly on trading conditions. In New York, shares of SAP were trading up 2.4% premarket Thursday.

SAP just delivered Q3 2026 numbers that pushed it past the €10b quarterly revenue mark for the first time, with net income of €2.249b setting the profit tone. The stock closed at €215.45 on 22 October, capping a powerful 90 day run. Expectations coming into this release were already heated. Cloud performance is the emotional trigger. Investors are reacting to a business that reported €10.27b in total revenue and a rising earnings base, while the share price has already priced in a lot of optimism. The real question now is whether today's one day move reflects those fundamentals or stretches them. Excited by SAP clearing €10b in quarterly revenue but worried the recent share price surge has already baked in a lot of optimism? Compare this setup with a curated group of sturdier balance sheet ideas in our list of solid balance sheet and fundamentals stocks (203 results). - Total Revenue (Q3 2026 vs Q3 2025): €10,270m vs. €9,076m (+13.2%) - Net Income (Excl. Extra Items, Q3 2026 vs Q3 2025): €2,249m vs. €2,004m (+12.2%) - Basic EPS (Q3 2026 vs Q3 2025): €1.96 vs. €1.72 (+13.9%) - Trailing 12-Month Net Income (Excl. Extra Items, Q3 2026 vs Q3 2025): €8,040m vs. €7,082m (+13.5%) Earnings tell part of SAP's story, but investors who care about what they are actually paying for usually study the cash moving through the business. Looking at SAP's cash flows in isolation, the stock could be a dramatic 31% undervalued. Bulls argue that SAP's second growth layer depends on AI tools turning interest into paid usage at scale. "The main requirement is that SAP converts strong interest in its Business AI platform, Joule Work and hundreds of planned autonomous agents into sustained adoption and economically attractive consumption revenue, while managing AI related costs and integration rules." Q3 shows real progress. Cloud revenue reached €6.7b and current cloud backlog hit €24.1b, with AI and Business Data Cloud cited in 9 of the top 50 deals. Services income fell as SAP pushed non billable adoption work, which points to AI tied deeper into ERP rather than hype with no follow through. More cautious investors worry that AI usage, integrations and acquisitions might drag on profitability even as cloud metrics stay strong. "Management has already trimmed its non IFRS operating profit outlook for 2026 while keeping cloud revenue and backlog guidance unchanged. If similar downward revisions recur without a corresponding reset to top line expectations, investors could question the profitability of SAP's AI and data investments, which may weigh on the share price and limit any rerating on P/E that underpins the bullish narrative." Q3 offers a partial rebuttal. Non IFRS operating profit grew 18% to more than €3b and 2026 profit and free cash flow guidance were reaffirmed. Cloud gross margin slipped about 0.7 percentage points, so AI cost discipline remains an open test, not a passed exam. The price and this Narrative do not agree. → Uncover what this Narrative says SAP is actually worth. SAP just reported a quarter that refocused attention on how AI, cloud and profit quality shape expectations. The real opportunity is studying stocks that could be undervalued before stronger earnings power is fully recognized. - Company 1 - 47% below our estimate - turns a record construction backlog of data center and modular projects into higher utilization on complex, technology heavy jobs. - Company 2 - 23% below our estimate - supplies grid testing and RF systems as utilities and aerospace contractors upgrade equipment for electrification and defense programs. - Company 3 - 33% below our estimate - signs long term AI infrastructure and database contracts that shift heavy upfront spending into future subscription and consumption revenue. Three companies from the same screener. Open every one of the 196 undervalued companies on it → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include SAP.DE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

- 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. WALLDORF, Germany, Oct. 21, 2026 /PRNewswire/ -- 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 the 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). Nine months ended September 2026 | IFRS | | Non-IFRS1 € million, unless otherwise stated | Q1–Q32026 | Q1–Q32025 | ∆ in % | | Q1–Q32026 | Q1–Q32025 | ∆ 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 the 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 Information[1] 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. Total 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. 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. 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 APJ 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. 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 [email protected], CET Follow SAP Investor Relations on LinkedIn at SAP Investor Relations. 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. [1] The Q3 2026 results were also impacted by other effects. For details, please refer to the disclosures on page 21 of the Quarterly Statement. [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 effective 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). 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- IBM missed Q2 EPS by $0.04 and fell 19% YTD; Wednesday's report must show deferred capex deals converted to real revenue. - SAP's AI now appears in over 90% of its 50 largest deals, with cloud backlog growing 26% last quarter and analysts expecting 31% EPS growth. - Strong results from both companies Wednesday would validate Jim Cramer's call that Q3 marks the moment software bounced back. - Just released. Our analysts combed the entire stock market and named the ten best stocks to buy right now, and SAP didn't make the cut. Enter your email to see the names that beat SAP. The report is free. Enter your email and see if any of your stocks made the cut. IBM (NYSE:IBM) and SAP (NYSE:SAP) are set to release third-quarter results on Wednesday, October 21. Jim Cramer said on October 1 that this quarter would be remembered "as the moment when software bounced back." These two reports will test that claim. Second-quarter EPS of $2.93 missed the $2.97 consensus and ended a five-quarter beat run. Revenue rose just 1.1%. IBM faulted large capex deals, meaning big hardware buys that clients delayed. In a July 30 Mad Money interview, IBM CEO Arvind Krishna said about 40% of them had closed within three to four weeks, calling it "a good signal that it is a deferral, not a destruction." Skeptics remain, however. An investor on CNBC's Halftime Report said on October 6 that he sold after management "lowered their guide," citing software sales growth of only 5%, flat consulting revenue, and a 7% infrastructure fall. Cramer supported the stock on August 24: "I think it's doing better than people think. ... I know that people hate this stock, even though I don't think they should." Shares trade at $236.39, down 18.9% year to date. ------ Free Report, Just Released Why Didn't SAP Make The Top 10 List? 24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now. Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now. And SAP didn't make the cut! The report is free, and you can see why we think each stock is a top investment today. Enter Your Email and See the Ten → ------ Watch for three things: whether the delayed deals closed, whether recurring software growth approaches the 10% second-half rate management promised, and whether the full-year revenue growth outlook of 4% to 5% holds. IBM hosts its call at 5:00 p.m. ET, according to its announcement. Quantum computing remains the longer-term story. IBM said it expects quantum to have a measurable impact on its top and bottom lines in 2028 or 2029. The cloud backlog consists of cloud contracts that customers have signed but that SAP has not yet recognized as revenue. Investors treat it as an early look at future sales. In February, CEO Christian Klein said total cloud backlog grew 30% at constant currencies to a record €77.3 billion ($88.6 billion). SAP Business AI appeared in two-thirds of fourth-quarter cloud order entries. In April, he reported current cloud backlog growth of 25% and cloud revenue growth of 27% at constant currencies. Current cloud backlog then grew 26% in the second quarter. Even so, management still expects "a slight deceleration" this year. The key question is whether that growth rate holds and whether AI is still winning deals. AI and Business Data Cloud appeared in more than 90% of SAP's 50 largest second-quarter deals. Shares have risen 8.0% over the past month. Details are on SAP's investor events page. Metric | IBM | IBM YoY | SAP | SAP YoY Q3 EPS | $2.872 | 8.4% | $2.0862 | 31.2% Q3 Revenue | $16.84B | 3.1% | $10.09B | 11.2% FY26 EPS | $12.3114 | 6.2% | $8.1539 | 15.7% FY26 Revenue | $70.38B | 4.2% | $40.27B | −4.5% SAP's figures are converted from euros to dollars, so currency fluctuations may distort its year-over-year comparisons. IBM must show that the delayed deals turned into revenue and that its second-half growth acceleration is on track. SAP must show current cloud backlog growth holding near its second-quarter rate of 26%, with Business AI still supporting its largest deals. Strong results from both would back up Cramer's software rebound call. If you have cash sitting in your account right now, give this two minutes. After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And SAP wasn't one of them. They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and see which stocks made the list -->> Contact [email protected] for any questions or corrections.

Leading Korean automotive parts manufacturer achieves 50% annual maintenance savings, improved service responsiveness and long-term stability for its highly customized SAP and Oracle environments LAS VEGAS, October 13, 2026--(BUSINESS WIRE)--Rimini Street, Inc. (Nasdaq: RMNI), the Software Support and Agentic AI ERP Company™ and the leading third-party support provider for Oracle, SAP and VMware software, today announced continued success in its long-standing relationship with Pyung Hwa Holdings, a leading Korean automotive parts holding company. Through years of support for the company's SAP ECC 6 and Oracle Database environments, Rimini Street has helped Pyung Hwa Holdings, a supplier to major domestic automotive manufacturers and global OEM supply chains, cut annual maintenance costs by 50%, improve service responsiveness and avoid the cost, disruption and risk associated with unnecessary upgrades. Today, Pyung Hwa Holdings continues to rely on Rimini Support™ for its highly customized SAP and Oracle environments, citing improved operational efficiency, cost optimization and long-term IT flexibility as key outcomes of the partnership. "The first three years with Rimini Street have proven to be one of the best decisions made to support our objective of improving profitability and freeing up our talent for higher-value initiatives," said Sangwook Lee, director, head of information strategy, Pyung Hwa Holdings. "The quality of service, the value of the trusted partnership and our confidence in the long-term stability of our mission-critical SAP and Oracle Database environments are why we selected Rimini Street for another five years." Dependable, Quality Support for SAP and Oracle Database with One Trusted Partner Pyung Hwa Holdings runs a highly customized SAP ECC 6 platform across production planning, materials management, finance, controlling and human resources, with Oracle Database serving as the underlying data infrastructure. The environment supports centralized management across 17 subsidiaries, including 12 domestic and five overseas affiliates, making system stability, responsive support and Korea-specific expertise essential to daily operations. Before Rimini Street, Pyung Hwa Holdings faced high annual maintenance fees and inconsistent support value. The company needed faster issue resolution, deeper expertise for its customized SAP and Oracle environments and practical guidance for Korea-specific requirements, including year-end HR tax settlement processing. After validating the third-party software support model through discussions with existing Rimini Street clients in Korea, Pyung Hwa Holdings moved forward with Rimini Street and gained more responsive service, lower maintenance costs and greater flexibility to direct IT talent and budget toward transformation priorities. With Rimini Street, Pyung Hwa Holdings continues to run stable, highly customized SAP and Oracle systems on its own business-led timeline, without being pulled into a vendor-mandated upgrade or migration path. The company can extend the life and value of its current enterprise systems while preserving capital, IT resources and operational focus for higher-value initiatives. "Rimini Street helped us break free from vendor pressure to upgrade and establish IT strategies aligned with our business requirements and operational environments," said Lee. Savings and Stability Create Opportunities for Growth By reducing maintenance costs and increasing operational flexibility, Pyung Hwa Holdings has been able to redirect resources toward smart manufacturing, advanced data analytics and AI-driven quality management. Looking ahead, the company plans to gradually introduce capabilities such as AI-based predictive maintenance, digital twins and production optimization, while expanding R&D investments in hydrogen fuel cell and electric vehicle components. "Pyung Hwa Holdings' experience demonstrates the value organizations can achieve when they have a technology partner focused on delivering measurable, meaningful business outcomes for their clients," said Hyungwook "Kevin" Kim, GVP and regional general manager, Korea, Rimini Street. "For years, we've provided Pyung Hwa Holdings the responsive support, deep expertise and stability needed to help maximize the value of their SAP and Oracle investments. We are proud of the trust we have earned and the strong relationship we can continue to build together." "Our relationship with Rimini Street has consistently delivered measurable value through responsive support, system stability and significant cost savings," said Lee. "With a partner that understands our environment and business priorities, our team can stay focused on initiatives that drive long-term business success." Learn more about how Pyung Hwa Holdings is funding innovation with Rimini Support™. About Rimini Street, Inc. Rimini Street, Inc. (Nasdaq: RMNI), a Russell 2000® Company, is a proven, trusted global provider of end-to-end, mission-critical enterprise software support, managed services and innovative Agentic AI ERP solutions, and is the leading third-party support provider for Oracle, SAP and VMware software. The Company has signed thousands of IT service contracts with Fortune Global 100, Fortune 500, midmarket, public sector and government organizations who have leveraged the Rimini Smart Path™ methodology to achieve better operational outcomes, billions of US dollars in savings and fund AI and other innovation. To learn more, please visit www.riministreet.com, and connect with Rimini Street on X, Facebook, Instagram, and LinkedIn. Forward-Looking Statements Certain statements included in this communication are not historical facts but are forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as "anticipate," "assume," "believe," "budget," "continue," "could," "currently," "estimate," "expect," "forecast," "future," "intend," "may," "might," "outlook," "plan," "possible," "goal," "potential," "predict," "project," "reflect," "results," "seem," "seek," "should," "will," "would" and other similar words, phrases or expressions. These forward-looking statements include, but are not limited to, statements regarding our expectations of future events, future opportunities, global expansion and other growth initiatives and our investments in such initiatives. These statements are based on various assumptions and on the current expectations of management and are not predictions of actual performance, nor are these statements of historical facts. These statements are subject to a number of risks and uncertainties regarding Rimini Street's business, and actual results may differ materially. These risks and uncertainties include, but are not limited to our ability to attract new clients or retain and/or sell additional products or services to existing clients; our ability to achieve and maintain an adequate rate of revenue growth; cost of revenue, including changes in costs associated with our efforts to grow and the results of any efforts to manage costs to align with current revenue expectations and the expansion of our offerings; the effects of increased intense competition in our industry and our ability to compete effectively; our ability to successfully educate the market regarding the advantages of our support and managed services for ERP software and to sell the products and services comprising our "Rimini Smart Path™" solutions portfolio, including but not limited to our Agentic AI ERP solutions; our intentions with respect to our pricing model and expectations of client savings relative to use of other providers; the evolution of the ERP software management and support landscape facing our clients and prospects; estimates of our total addressable market; the effects of seasonal trends on our results of operations, including the contract renewal cycles for vendor-supplied software support and managed services; the effects of the efforts of enterprise software vendors to sell upgrades or migrations to cloud-based versions of their enterprise software on our results of operations; our ability to scale our operations quickly enough to meet our clients' changing needs or decrease our costs adequately in response to changing client demand; risks arising from incorporating artificial intelligence ("AI") technologies into our products or services or any deficiencies associated with AI technologies used by us or by our third-party vendors and service providers; our ability to maintain, protect, and enhance our brand; the loss of one or more members of our management team and our ability to attract and retain additional qualified technical, sales and marketing personnel; our ability to expand our marketing and sales capabilities; our ability to avoid interruptions to, or degraded performance of, our services and the impact of any such interruptions or performance problems on our operations; our ability to defend against cybersecurity threats and to comply with data protection and privacy regulations; our expectations regarding new product offerings, innovation solutions, partnerships and alliance programs and our ability to develop and maintain strategic partnerships; our ability to expand internationally and the risks associated with global operations; our wind down of support services for Oracle's PeopleSoft software products and the impact on future period revenue and costs incurred related to these efforts; the continuing impact of and our ability to comply with the terms of our July 2025 settlement agreement with Oracle; the impact of macro-economic trends, including inflation and changes in foreign exchange rates, as well as general financial, economic, regulatory and political conditions affecting the industry in which we operate and the industries in which our clients operate; our ability to generate significant capital through our operations or to raise additional capital necessary to fund and expand our operations and invest in new services and products; our business plan and our ability to effectively secure and manage our growth and associated investments; risks relating to retention rates, including our ability to accurately predict retention rates; our ability to protect our intellectual property; our ability to maintain an effective system of internal control over financial reporting; changes in laws or regulations, including tax laws or unfavorable outcomes of tax positions we take; tariff costs; our ability to realize benefits from our net operating losses; any negative impact of environmental, social and governance ("ESG") matters on our reputation or business and the exposure of our business to additional costs or risks from our reporting on such matters; our credit facility's ongoing debt service obligations and financial and operational covenants on our business and related interest rate risk; the sufficiency of our cash and cash equivalents to meet our liquidity requirements; the volatility of our stock price; the amount and timing of repurchases, if any, under our stock repurchase program and our ability to enhance stockholder value through such program; our ability to maintain our good standing with the United States and international governments and capture new contracts with public sector entities; the occurrence of catastrophic events that may disrupt our business or that of our current and prospective clients; future acquisitions of, or investments in, complementary companies, products, subscriptions or technologies; and those discussed under the heading "Risk Factors" in Rimini Street's Quarterly Report on Form 10-Q filed on July 30, 2026, and as updated from time to time by Rimini Street's future Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings by Rimini Street with the U.S. Securities and Exchange Commission. In addition, forward-looking statements provide Rimini Street's expectations, plans or forecasts of future events and views as of the date of this communication. Rimini Street anticipates that subsequent events and developments will cause Rimini Street's assessments to change. However, while Rimini Street may elect to update these forward-looking statements at some point in the future, Rimini Street specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing Rimini Street's assessments as of any date subsequent to the date of this communication. © 2026 Rimini Street, Inc. All rights reserved. "Rimini Street" is a registered trademark of Rimini Street, Inc. in the United States and other countries, and Rimini Street, the Rimini Street logo, and combinations thereof, and other marks marked by TM are trademarks of Rimini Street, Inc. All other trademarks remain the property of their respective owners, and unless otherwise specified, Rimini Street claims no affiliation, endorsement, or association with any such trademark holder or other companies referenced herein. View source version on businesswire.com: https://www.businesswire.com/news/home/20261013917596/en/ Contacts Janet Ravin VP, Corporate Marketing Rimini Street, Inc. +1 702 285-3532 [email protected]

Lindsell Train Ltd, an investment management company, has released its "Lindsell Train Global Equity Fund" third-quarter 2026 investor letter. The letter can be downloaded here. To drive long-term capital growth, the LT Global Equity Fund maintains a concentrated portfolio of developed-market global equities. The Fund fell 1.4% in Q3 2026, trailing the MSCI World Index (+1.8%). Positive gains in July and August driven by strong investee earnings were offset by a September pullback as rising bond yields pressured valuations. Despite a polarized, tech-dominated market, management remains optimistic about long-term returns given compelling valuations and ongoing portfolio growth. Also, check the strategy's top five holdings to see its best picks in 2026. In its Q3 2026 investor letter, Lindsell Train Global Equity Fund highlighted SAP SE (NYSE:SAP). Headquartered in Walldorf, Germany, SAP SE (NYSE:SAP) is a leading enterprise application and business solutions provider. On October 12, 2026, SAP SE (NYSE:SAP) closed at $217.85, with a $253.68 billion market capitalization. SAP SE (NYSE:SAP) posted a ~8.96% YTD pullback, trading within a 52-week range of $144.97 to $281.37. Lindsell Train Global Equity Fund stated the following regarding SAP SE (NYSE:SAP) in its Q3 2026 investor letter: "A quick mention must also go to SAP SE (NYSE:SAP), one of the Fund's most recent additions, which has regained some of its lost ground by rising 39% over the quarter – again helped by a strong set of Q2 results. The holding in the Fund is now 2.5%, with the bulk bought at lower prices in May and June, following the indiscriminate sell-off in software earlier in the year." SAP SE (NYSE:SAP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 35 hedge fund portfolios held SAP SE (NYSE:SAP) at the end of the second quarter, compared to 33 in the previous quarter. While we acknowledge the potential of SAP SE (NYSE:SAP) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In an earlier article, we examined how SAP SE (NYSE:SAP) aims to leverage AI to deepen its enterprise moat while maintaining strict margin discipline. In addition, please check out our hedge fund investor letters Q3 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. This article is originally published at Insider Monkey.

Workday, Inc. WDAY combined second-quarter earnings beat with faster AI adoption and a higher margin outlook. Attention now turns to whether those trends can support fiscal 2028 growth.The central issue is monetization. Core subscription growth is expected to moderate, making Workday's ability to convert expanding AI usage into incremental annual recurring revenues increasingly important. Second-quarter revenues rose 12.8% year over year to $2.65 billion, beating the Zacks Consensus Estimate of $2.63 billion by 0.6%. Non-GAAP earnings of $2.75 per share topped the consensus mark of $2.62 by 5%.Subscription revenues increased 13.9% to $2.47 billion and accounted for about 93% of total revenues. Roughly 60% of subscription revenue growth came from expansion among existing customers. Workday, Inc. price-consensus-eps-surprise-chart | Workday, Inc. Quote AI products generated more than $100 million of new annual contract value in the quarter, representing more than 25% of total new annual contract value. Agentic AI annual recurring revenues approached $600 million, rising more than 200% year over year.Adoption is spreading across several offerings. More than 200 customers had signed up for Flex Credits, while 170 customers had purchased Adaptive Decision Intelligence. More than half of net new wins included one or more AI solutions. Workday raised its fiscal 2027 non-GAAP operating margin outlook to 31%. Management maintained operating cash flow guidance of $3.45 billion and expects free cash flow of $3.18 billion for the year.Workday continues to prioritize investment in its agentic AI roadmap and platform opportunity while driving operating efficiencies. That combination keeps the focus on whether AI spending can scale without sacrificing the margin trajectory. Management currently targets about 11% subscription revenue growth in fiscal 2028, consistent with the expected growth rate in the second half of fiscal 2027. Workday also expects non-GAAP operating margin to expand by at least two percentage points.Potential upside could come from Sana Enterprise, Workday Extend with Data Cloud and AI agents, which are seeing strong early demand. Management is prioritizing adoption before full monetization and expects AI to become a more significant contributor to incremental annual recurring revenues from fiscal 2028 and beyond. Total costs and expenses increased 11% year over year to $2.34 billion in the second quarter. The increase included $126 million of higher employee-related costs and $32 million of additional third-party hosted infrastructure spending.Oracle Corporation ORCL lists AI agents across Oracle Fusion Cloud HCM functions such as benefits, compensation and employee self-service. SAP SE SAP has expanded suite-wide agentic AI across SAP SuccessFactors, including recruiting, payroll, learning and talent development. Workday has also cited greater deal scrutiny and longer sales cycles in some markets. The fiscal 2028 setup is improving, but AI adoption still needs to translate into durable incremental revenues as core subscription growth moderates. Cost discipline and sales execution remain important to how much of the opportunity reaches reported results.WDAY currently carries a Zacks Rank #3 (Hold), supporting a measured near-term stance. Its Growth Score of A is favorable for investors focused on growth characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Value Score of D, Momentum Score of F and VGM Score of C make the broader quantitative profile less supportive. Since Zacks Style Scores complement the Zacks Rank, the mix indicates stronger growth characteristics than value and momentum attributes at present. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Workday, Inc. (WDAY) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report Oracle Corporation (ORCL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It has been about a month since the last earnings report for Commvault Systems (CVLT). Shares have added about 11.6% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Commvault due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for CommVault Systems, Inc. before we dive into how investors and analysts have reacted as of late. Commvault reported first-quarter fiscal 2027 non-GAAP earnings of $1.42 per share, up 40.6% year over year. The figure beat the Zacks Consensus Estimate of $1.18 by 20.3%. Revenues advanced 11.4% to $314.13 million and surpassed the consensus mark by 0.99%. Results benefited from strong SaaS demand, subscription growth and improving profitability. Subscription annual recurring revenues (ARR) increased 22% to $1.05 billion. Subscription revenues increased 16% year over year to $267.03 million and accounted for 85% of total revenues, up from 81% in the prior-year quarter. Term-based license revenues rose 1% to $110.42 million, while term-based support revenues climbed 18% to $56.06 million. SaaS revenues surged 39% to $100.55 million, crossing the $100 million quarterly threshold for the first time. Perpetual license revenues increased 19% to $8.70 million. However, perpetual support revenues declined 19% to $25.48 million, while other services revenues fell 7% to $12.93 million. Subscription ARR reached $1.05 billion, up from $867.31 million a year earlier. CVLT added $39 million in net new subscription ARR during the quarter, driven by continued strength in its SaaS offerings. SaaS ARR grew 38% to $424.34 million from $306.87 million. The company surpassed 10,000 active SaaS customers, while subscription net dollar retention remained steady at 114%. Identity resilience and data security offerings represented more than one-third of net new subscription ARR. Emerging SaaS offerings, including Clumio S3 Protection, Google Workspace and Azure DevOps, also recorded strong growth. The percentage of Commvault-managed SaaS customers using at least two products increased to 49% from 42% a year earlier. This reflected continued upselling and cross-selling across the Commvault Cloud Platform. Management highlighted identity resilience as an important entry point for broader platform adoption. Demand was supported by customers seeking to protect identity systems, govern data access and recover operations following cyber incidents. Commvault also expanded its relationship with Microsoft. Its cyber-resilience capabilities are expected to become available as a native independent software vendor service on Microsoft Azure, making the platform easier to integrate into Azure-based workflows. Gross margin reached 82.1% in the reported quarter. SaaS gross margin improved 635 basis points year over year to 70.6%, aided by product optimization, acquisition integration and strategic agreements with hyperscaler partners. Operating expenses increased 7% to $185 million but declined as a percentage of revenues to 59% from 61% a year earlier. Headcount remained roughly flat year over year. Non-GAAP EBIT increased to $71.47 million from $58.25 million. The corresponding margin expanded 210 basis points to 22.8%, marking the company’s strongest quarterly EBIT margin performance in more than a decade. Operating cash flow increased to $51.67 million from $31.68 million in the year-ago quarter. Free cash flow rose 71% to $51.10 million, reflecting stronger collections and continued spending discipline. Commvault ended the quarter with cash and cash equivalents of $929.84 million, up from $899.99 million at the end of fiscal 2026. During the quarter, the company repurchased roughly 98,000 shares for $10 million. Management continues to target share repurchases equal to approximately 60% of annual free cash flow while retaining balance sheet flexibility. For the second quarter of fiscal 2027, subscription revenues are projected between $264 million and $268 million. Total revenues are expected to be approximately $310 million, while the non-GAAP EBIT margin is forecast at about 20%. For fiscal 2027, CVLT raised its subscription revenue outlook to $1.119-$1.129 billion from $1.115-$1.125 billion. Subscription ARR guidance was maintained at $1.20-$1.21 billion, with SaaS ARR expected to exceed $500 million. The company continues to expect total revenues of $1.30-$1.31 billion and free cash flow of $250-$260 million. Non-GAAP EBIT margin guidance was increased by 50 basis points to approximately 21%. In the past month, investors have witnessed a upward trend in estimates review. Currently, Commvault has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Commvault has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Commvault is part of the Zacks Computer - Software industry. Over the past month, SAP (SAP), a stock from the same industry, has gained 13.8%. The company reported its results for the quarter ended June 2026 more than a month ago. SAP reported revenues of $11.48 billion in the last reported quarter, representing a year-over-year change of +12.1%. EPS of $1.85 for the same period compares with $1.70 a year ago. For the current quarter, SAP is expected to post earnings of $2.04 per share, indicating a change of +9.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for SAP. Also, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report CommVault Systems, Inc. (CVLT) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research