Tesla reports 43% profit decline, starts Optimus robot production
Revenue reached $28.04 billion in the third quarter as Tesla expanded spending on AI and robotics and reported lower regulatory credit sales.
SAP posts first €10 billion quarter, raises 2026 revenue expectations
Third-quarter cloud revenue grew 26% to €6.67 billion, while the company maintained its annual operating profit forecast.
SAP reported on October 21 that quarterly revenue had reached €10 billion for the first time and said it now expects 2026 revenue near the upper limits of its forecast ranges. Its third-quarter non-IFRS operating profit rose 18%, reaching €3.03 billion.
For 2026, the company expects subscription revenue toward the upper end of its €25.8 billion to €26.2 billion forecast, representing growth of 23% to 25%. Total revenue, including its declining traditional license business, is expected at the top of the €36.3 billion to €36.8 billion range, with growth of 12% to 13%.
SAP left its annual operating profit guidance unchanged at €11.8 billion to €12.2 billion at constant currencies. It had lowered that range in July to account for recent acquisitions.
Current cloud backlog increased 26% at constant currencies, reaching €24.14 billion and exceeding UBS's forecast for growth of 24% to 25%. SAP's order book is used to track global enterprise technology spending because many large companies use its accounting and payroll software.
The company said customers emerging from financial distress helped lift cloud revenue. Its profit margin increased to 29.5%, compared with 28.3%, while free cash flow climbed 36%, reaching €1.72 billion.
CEO Christian Klein said customers were investing in technology underpinning SAP's artificial intelligence strategy. AstraZeneca, Infineon and Henkel joined its cloud customer base.