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SAP Faces Pivotal Earnings Test April 23 — Consumption-Based AI Pricing Launch in July, €21B Cloud Backlog
SAP reports Q1 2026 earnings April 23 with consensus at €9.56B revenue (+6% YoY) and 18% cloud revenue growth. The critical signal: SAP will shift its Joule AI platform to consumption-based pricing starting July 2026, moving away from seat-based licensing. Cloud backlog stands at €21B. SAP also acquired Reltio (master data management) in March to prepare customer data for AI workloads. Stock is down 25% YTD. For builders: SAP's consumption pivot is the largest enterprise software company to abandon seat pricing for AI — if it works, every ERP vendor follows.
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