Europe's big enterprise AI hope SAP books 85% of 2026 revenue as deals boom

Core Insights - SAP is positioning itself as a significant player in the enterprise AI space, with CEO Christian Klein stating that AI is the primary driver for customer deals [1] - The company reported a 23% increase in its cloud backlog, reaching €18.8 billion in Q3 [2] - SAP's revenue grew by 7% to €9.08 billion ($10.53 billion), with cloud revenue increasing by 22% due to gains in AI and data cloud market share [3] Financial Performance - SAP's revenue for the upcoming year is largely secured, with 80-85% already accounted for after Q4 [2] - The company is guiding towards the lower end of its cloud revenue forecast for the year, estimating between €21.6 billion and €21.9 billion [4] - Despite initial gains, SAP's shares fell by 2.5% after trading, reflecting a year-to-date decline of 3% [5] Market Position - Deutsche Bank has identified SAP as a "top pick" in the European tech and global software sector, despite the lower guidance for cloud revenue growth [4][5] - The company is navigating challenges such as lengthening deal cycles but continues to execute well in the market [5]