SAP SE: Cloud Revenue Rising Amidst Broader Macro Challenges But Will It Last?

The SAP Q3 2024 earnings highlighted a robust performance amid its ongoing transformation, showcasing both the strengths and challenges of the strategic shifts the company has made. SAP’s current cloud backlog grew by 29% to EUR 15.4 billion, signaling strong future revenue potential. This growth was primarily organic, with a minor contribution from the recent acquisition of WalkMe, signifying robust internal advancements rather than just expansion through acquisitions. This demonstrates SAP’s capacity to grow its cloud offerings significantly, highlighting a successful shift towards more predictable revenue streams, which now account for 84% of total revenue.