German software giant SAP fell 11% on Thursday after reporting weaker-than-expected growth in its cloud contract backlog in the fourth quarter.
This is the biggest daily decline since October 2020, when shares fell 22% the result of the third quarter is not satisfactory. The stock is also on track to close at its lowest price since mid-2024.
Shares were down 9.7% in recent trading.
SAP’s current cloud backlog grew 16% to 21.1 billion euros ($25.3 billion) in the fourth quarter. Analysts at UBS noted on Thursday that cloud backlog growth would be “disappointing” based on previous expectations of 26% growth.
“Higher cloud revenue ramps in prior years and large transformational transactions associated with the termination of legally required favorable conditions negatively impacted fourth quarter constant currency current cloud backlog growth by approximately 1 percentage point,” SAP said in its earnings release.
Chief Executive Christian Klein said the cloud backlog in the final quarter of the year laid a “solid foundation” for accelerating revenue growth through 2027.
The German company has guided for a “slight slowdown” in growth in cloud computing in 2026.
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