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- SAP revenue tops €10 billion as cloud growth accelerates
SAP's total revenue rose 13% to €10.27 billion, with cloud revenue up 26% to €6.668 billion (25% excluding currency effects) and current cloud backlog reaching €24.144 billion, up 28%. Non-IFRS operating profit increased 18% to €3.030 billion, while IFRS operating profit was €2.930 billion. CEO Christian Klein attributed customers' move to the cloud mainly to artificial intelligence. SAP now expects cloud revenue toward the upper end of its €25.8 billion–€26.2 billion range and cloud and software revenue toward the upper end of €36.3 billion–€36.8 billion, both at constant currencies, while keeping its non-IFRS operating profit outlook at €11.8 billion–€12.2 billion. SAP also agreed on Oct. 6 to buy Belgian workforce technology company TechWolf, with closing expected in the fourth quarter.
- SAP ( SAP ) Q3 2026 Earnings Call Transcript
SAP (SAP) reported total revenue of €10.3 billion, up 12% year over year and the first time quarterly revenue exceeded €10 billion, with cloud revenue rising 25% at constant currency to €6.7 billion. Current cloud backlog grew 26% to €24.1 billion, and non-IFRS operating profit rose 18% to €3 billion. Business AI and Business Data Cloud were included in 90% of the 50 largest deals, and internal productivity in central functions rose 20% after deploying Joule Work Desktop. Management warned that political and macroeconomic uncertainty could weigh on fourth-quarter bookings and its 2027 trajectory, and said interest rates of 5% or higher are beginning to affect customer behavior.
- Why Isn't IBM's Stock Bouncing Back After Strong Earnings Results?
IBM shares fell about 25% in July, their worst day in 115 years, after the company said customers had shifted spending to memory and storage products and delayed major contracts. The third-quarter report on October 21 showed revenue up 5% to $17.1 billion, operating earnings per share up 11% to $2.95, and software growth of 9% at constant currency. The author estimates organic software growth was closer to 4% after excluding the roughly $11 billion Confluent acquisition, and that meeting the roughly $32 billion full-year software target implies fourth-quarter software growth of about 4%. Debt rose to $63.8 billion after $11.4 billion of acquisitions this year, though the dividend appears well covered by free cash flow. The author still sees IBM as a long-term holding for its enterprise AI position and customer base, despite the market's muted reaction.
- IBM beats on top and bottom lines as CEO Krishna touts 'Super Intelligence' traction
IBM shares slipped in extended trading after the company reported third-quarter adjusted earnings of $2.95 per share, above the $2.86 expected, and revenue of $17.10 billion versus $16.82 billion forecast. Revenue rose about 5% from a year earlier, and net income reached $2.19 billion, or $2.30 per share, compared with $1.84 per share a year ago. Software revenue grew 8% to $7.80 billion, beating estimates, while consulting was flat at $5.34 billion with its gross margin narrowing to 27.4% from 28.9%, and infrastructure rose 4% to $3.70 billion. AI accounts for about 30% of consulting revenue and 35% of backlog, and IBM still expects 2026 constant-currency revenue growth of 4% to 5% and free cash flow growth of more than $1 billion. CFO Jim Kavanaugh said he is comfortable with street estimates of about $32 billion in annual revenue.
- How Has Zoom's Story Changed?
Zoom Communications (ZM) trades at 5.7 times sales, versus 3.1 for the S&P 500. Management has moved its pitch from a unified communication and collaboration platform, as described in November 2024, to an AI-first, multi-product system of action, with ZoomMate, launched in June, as the centerpiece and Zoom Workplace called its foundation. In fiscal Q2 2027, enterprise made up 62% of revenue and grew 7.8%, its strongest rate in three years, which management credits to its AI priorities; licensed monthly active users of AI features in Zoom Workplace rose 125%. The company raised its fiscal 2027 revenue growth forecast to 4.5% at the midpoint from 4.1%, but expects online revenue to be flat, and churn from a white-label deal cut about 0.6 percentage points from enterprise growth in fiscal Q2.
- ServiceNow Fell 20% Over a Year But This Wall Street Analyst Predicts 70% Gains From Here
ServiceNow trades at $145.33, nearly 20% below a year ago, even though its AI business has passed $1 billion in annual contract value. The average analyst target of $152.23 implies 4.7% upside, while Bernstein's Peter Weed has an Outperform rating and a $248 target, implying 70.6% upside. The stock fell from a 52-week high of $192.97 to a low of $81.24 as fears that AI agents would erode seat-based software hit the group, and second-quarter operating income dropped 54.75% to $162M. In the latest quarter, revenue rose 24.0% to $3.987B and EPS of $0.90 beat the $0.86 consensus. The author leans bullish but considers the consensus target a more realistic 12-month marker than the 70% call.
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- Musk's wants to merge SpaceX and Tesla: Here's what to know
Musk said SpaceX and Tesla have formed special committees to study a merger, which would be worth about $3.5 trillion combined and would be the largest corporate deal in history. SpaceX, valued at about $2 trillion after a record listing this year, absorbed Musk's AI startup xAI in February, while Tesla is valued at about $1.5 trillion. Musk holds about 82 percent of SpaceX's voting power but only about 20 percent at Tesla. Dan Ives puts the odds of a deal at 90 percent by early 2027, though Musk called the requirement of a majority of all Tesla shares 'quite a high hurdle'. Loyal retail investors hold an estimated 25 to 27 percent of Tesla shares, and legal obstacles appear slight because both companies moved their incorporation to Texas from Delaware.
- CoreWeave and Nebius Stocks Are Crashing. Time to Buy the Dip?
Shares of Nebius and CoreWeave each fell 25% in the week of October 12 to 16. The sell-off stems from the yield on CoreWeave's debt in the secondary market surging to 15%, versus roughly 5% on Treasuries, which pushes the debt into 'distressed' territory and signals doubts about its ability to meet obligations. Nebius sold off in sympathy as a fellow neocloud company. The bigger concern is that both companies must keep issuing debt to fund data centers, and if yields are high at issuance, the assumption of nearly unlimited cheap capital could be challenged. The author says it is unclear whether now is the time to buy.
- Disney’s multiplatform Super Bowl plan frustrates ABC affiliates
ABC station owners are irritated that Disney is airing the Super Bowl across several platforms, including Disney+, ESPN2, NFL Network and ESPNU, even though the game is already on ABC and ESPN. A station group CEO estimates that the combined platforms could cut broadcast ad revenue by up to 35% compared with last year. Local affiliates typically earn about 3% of annual ad revenue from the Super Bowl and pay network owners reverse retransmission fees, but Disney+ lacks geofenced ad insertion, so affiliates cannot sell ads to streaming viewers. Disney says national commercials will be identical on all platforms and that streaming major live events is standard industry practice. Super Bowl LX drew 125.6 million viewers in February.
- Nasdaq sell-off: A momentum unwind 'for the record books'
Matt Stucky, chief portfolio manager for equities at Northwestern Mutual Wealth Management, calls Thursday’s sell-off in the Nasdaq Composite (^IXIC) a momentum unwind “for the record books.” He says the market spent the first half of 2026 driven by a beta and momentum trade led by semiconductors, but in the third quarter, as rates rose, money shifted into quality stocks. He does not think the sell-off is justified by fundamentals, arguing that institutional portfolio managers swapping out of factor positions can drag down whole baskets of stocks. In semiconductors, spot rental rates for Nvidia Blackwell chips are higher than a month ago, showing tightening compute supply, even as financing costs rise and investors worry about neocloud business models and the rising cost of insuring their bonds.
- Meta’s deal to keep Zuckerberg in California adds fuel to wealth tax debate ahead of election
Meta says Mark Zuckerberg will remain in California for eight years and has created a new stock plan that could help cover his taxes if Proposition 40, a 5% tax on Californians worth over $1 billion, passes on Election Day on Nov. 3. According to a filing released with its third-quarter earnings, Meta will issue non-voting Class C shares starting in January, and Zuckerberg can sell or transfer up to 20% of the shares granted to him without affecting his majority voting control. The filing says Zuckerberg’s leadership is crucial to the company’s growth and its AI ambitions, including Meta Superintelligence Labs. Most of the tech industry opposes the measure, while a recent Citrin-Politico poll found 46% in favor and 43% against, suggesting it may fall short of the majority support it needs.
- Dune launches real-time data feeds covering 200 onchain trading venues
Blockchain analytics platform Dune has launched real-time market data feeds covering more than 200 onchain trading venues, aiming to bring this data into the systems of traditional financial institutions. The feeds draw trade data from 12 blockchains, including Ethereum, Solana and Base, about one second after execution, covering both spot trading on decentralized exchanges and perpetual futures on Hyperliquid and Lighter. Early clients include quant funds, market makers, asset managers and bank trading desks, which use the data to assess liquidity and compare prices, though Dune did not name them. Meanwhile, the tokenized stock market has grown sharply, with distributed value reaching $3.58 billion, but 16 companies, including Microsoft, Alphabet and Goldman Sachs, have objected to their shares being traded on OKXICE’s proposed platform, and liquidity remains fragmented.
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