SAP SE (NYSE: SAP) reported first quarter financial results with current cloud backlog reaching €21.9 billion, representing a 20% increase or 25% growth at constant currencies compared to the same period last year.

The German enterprise software company posted cloud revenue of €5.96 billion, up 19% from the prior year period or 27% at constant currencies. Cloud ERP Suite revenue grew 23% to €5.21 billion, or 30% at constant currencies.

Total revenue increased 6% to €9.56 billion, or 12% at constant currencies. IFRS operating profit rose 17% to €2.74 billion, while non-IFRS operating profit increased 17% to €2.87 billion, or 24% at constant currencies.

Software licenses revenue declined 37% to €116 million, while software support revenue fell 11% to €2.47 billion. Services revenue decreased 6% to €1.01 billion.

The company's cloud gross margin remained relatively stable at 74.6% under IFRS reporting, compared to 74.5% in the prior year quarter.

SAP maintained its full-year 2026 financial outlook, expecting cloud revenue of €25.8-26.2 billion at constant currencies, representing 23%-25% growth. The company also expects cloud and software revenue of €36.3-36.8 billion at constant currencies, up 12%-13%.

For non-IFRS operating profit, SAP projects €11.9-12.3 billion at constant currencies, an increase of 14%-18%. Free cash flow is expected to reach approximately €10 billion.

During the quarter, SAP completed the first tranche of its share repurchase program, buying back 16.3 million shares for approximately €2.6 billion at an average price of €161.16.

The company announced an agreement to acquire master data management provider Reltio Inc. during the quarter. SAP also proposed a dividend of €2.50 per share for fiscal year 2025, subject to shareholder approval at the May 5 annual general meeting.