SaaS Metrics Weekly — 2026-10-22
SAP has reported a historic milestone with over €10 billion in quarterly revenue, driven by a 25% surge in cloud revenue fueled by AI adoption. Meanwhile, the venture capital landscape remains active with infrastructure startup Fireworks AI seeking a valuation between $30 billion and $40 billion, and ASI Software hitting a $3 billion valuation. The market sentiment is mixed, with public software indices recovering from earlier lows but remaining below 2026 starting points.
SaaS Metrics Weekly — 2026-10-22
Earnings & Revenue Reports
SAP — Q3 2026 Results
- Revenue: €11.64 billion (approx. $11.64 billion USD reported as total sales)
- ARR/Key Metric: Cloud revenue surged 25% YoY
- Guidance: Results significantly exceeded consensus estimates of $10.10 billion in sales.
- Takeaway: SAP achieved its first quarter with over €10 billion in revenue, driven by its transformation to cloud subscriptions and AI-powered solutions.
SEI Investments — Q3 2026 Results
- Revenue: Record sales drove 24% earnings growth
- ARR/Key Metric: EPS growth of 24% relative to Q3 2025
- Guidance: No specific forward guidance details available in recent snippets.
- Takeaway: SEI reported strong performance with record sales contributing to significant earnings growth.
IBM — Q3 2026 Results
- Revenue: Data available via transcript; specific figures not detailed in snippet.
- ARR/Key Metric: CEO Arvind Krishna indicated focus on AI assistance for clients.
- Guidance: Not available.
- Takeaway: IBM continues to position itself as a leader in helping clients navigate artificial intelligence.
Funding & Deals
| Company | Round/Deal | Amount | Valuation | Lead Investor |
|---|---|---|---|---|
| Fireworks AI | New Funding (Talks) | N/A | $30B - $40B | N/A |
| ASI Software | Series C | $325M | $3B | N/A |
| Town | Series B | $108M | $1B (Unicorn) | Forerunner Ventures, Menlo Ventures |
- Fireworks AI: The infrastructure startup, founded by ex-Google and Meta engineers, is in early talks for new funding at a valuation between $30 billion and $40 billion.
- ASI Software: This AI infrastructure management software startup raised $325 million, hitting a $3 billion valuation.
- Town: The AI assistant startup achieved unicorn status just four months after launch with a $108 million Series B round.
Market Pulse
- Cloud Index: No specific BVP Nasdaq Emerging Cloud Index data available for this week.
- Sector Sentiment: Public software is "back to green" at the index level, but gains are uneven. Many names remain significantly underwater on the year (e.g., HubSpot is 46% down YTD despite recent bounces).
- Notable Moves: Software companies are trading at a discount to the S&P 500 for the first time, with some trading at 22x forward earnings.
Industry Moves
- SAP: Reached a milestone of over €10 billion in quarterly revenue for the first time, driven by AI and cloud transformation.
- Layoffs: Tech layoffs continue into 2026, with over 127,000 workers cut in 2025 and reductions continuing, driven partly by AI-driven job cuts.
What to Watch Next Week
- Earnings: Monitor for further Q3 results from major SaaS players following SAP and IBM.
- Funding: Keep an eye on Fireworks AI's final valuation confirmation and other AI infrastructure rounds.
- Market Trends: Watch for continued volatility in public software indices as they attempt to recover from 2026 lows.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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