SAP, Aqarios Quantum Technologies, Infineon: The battle for the next "computing revolution"

SAP: Billions in cloud growth

SAP has broken through the EUR 10 billion quarterly revenue mark for the first time. The Walldorf-based software group increased its revenue by 13% to EUR 10.27 billion in the third quarter of 2026. The cloud business posted even stronger growth, rising 26% to EUR 6.67 billion. The current cloud backlog reached EUR 24.1 billion, up 28% from the previous year. The October 21 figures show that demand for enterprise software remains high despite economic uncertainty.

Profitability is also improving. IFRS operating profit rose 18% to EUR 2.93 billion, while free cash flow rose 36% to EUR 1.72 billion. For the full year, SAP expects cloud revenue at the upper end of the forecast range of EUR 25.8 to 26.2 billion. Management is maintaining its forecast of EUR 11.8 to 12.2 billion for adjusted operating profit.

Integrating artificial intelligence into enterprise software is becoming increasingly important. With its AI assistant Joule and the acquisition of TechWolf, SAP aims to expand its position in business process automation. The group benefits from access to business-critical data, which is crucial for productive AI use.

Analysts responded predominantly positively. Goldman Sachs raised its price target from EUR 230 to EUR 258 and reiterated a Buy rating. Barclays raised its target from EUR 210 to EUR 250 and assigned an Overweight rating. JPMorgan, by contrast, remains more cautious, with a Neutral rating and a EUR 175 target.

Aqarios Quantum Technologies: German quantum software targets industry

While major technology groups invest billions in powerful quantum computers, Aqarios Quantum Technologies is positioning itself on the software side. The company, which emerged from a spin-off of Ludwig Maximilian University of Munich in 2021, is pursuing an approach that already addresses industrial optimisation tasks today. Rather than waiting for a breakthrough in quantum hardware, Aqarios combines classical computing methods, artificial intelligence and quantum algorithms.

At the centre is the Luna software platform. It brings together more than 35 algorithms and over 40 preconfigured optimisation scenarios in a single interface. Companies can use and compare different solution methods for areas such as production planning, logistics or energy supply. The hardware-independent architecture enables access to different computing systems.

Technological advances are delivered by the integration of NVIDIA CUDA-Q and cuQuantum. A specially developed simulator for Aqarios' proprietary quantum algorithm FlexQAOA achieved a roughly 87-fold speed-up over the conventional quantum algorithm for optimisation in a benchmark. This made it possible to simulate an optimisation problem from E.ON's energy sector with up to 88 binary variables on a single NVIDIA RTX 4090; an equivalent of 130 qubits with conventional algorithms. The results highlight the potential of specialised software.

Luna also provides access to IBM quantum processors from the Heron and Nighthawk generations. Users can first simulate calculations and then test them on real quantum hardware. With, among others, BASF, E.ON and MTU Aero Engines, Aqarios can already point to renowned project partners from industry.

The company, with a market capitalisation of around EUR 40 million, has also reached a capital-market milestone. The SPAC transaction with Fonterelli SPAC 4 was completed in July 2026. Since then, Aqarios has been represented on the capital market as Aqarios Quantum Technologies AG.

Infineon: AI data centres drive the chip business

The expansion of AI data centres is opening up new growth opportunities for Infineon. The Munich-based semiconductor group benefits in particular from rising demand for powerful and energy-efficient power supply systems. This is because computing power brings higher electricity consumption, heat generation and increased demands on energy conversion. This is precisely where Infineon holds a strong market position with its power semiconductors.

Operational performance provides concrete evidence of progress. In the third quarter of the 2026 financial year, Infineon generated record revenue of EUR 4.172 billion. Segment result reached EUR 797 million, corresponding to a margin of 19.1%. Both revenue and profitability were therefore higher than the EUR 3.81 billion and 17.1%, respectively, stated in the original report.

In early August, management projected a revenue increase of just over 13% to around EUR 4.7 billion for the fourth financial quarter. The segment result margin was expected to reach around 23%. For the full 2026 financial year, revenue was forecast at around EUR 16.3 billion.

Alongside data centres, electric mobility, industrial electronics and security solutions remain important sales markets. However, demand is not developing equally strongly in all areas. While the AI business is growing, the traditional industrial and automotive business remains more dependent on economic conditions.

Analysts also see opportunities, but differ in their assessments of the pace of recovery. Susquehanna lowered its price target from EUR 100 to EUR 85 on October 21, but reiterated its positive rating. Barclays maintained an Overweight rating with a EUR 90 price target in early October.

Conclusion

SAP already earns billions from cloud software and is increasingly integrating artificial intelligence into its products. Infineon supplies the semiconductors that power data centres. Aqarios Quantum Technologies, by contrast, is focusing on an earlier stage of development with software that combines classical optimisation with quantum methods.