tech
January 29, 2026
SAP shares see biggest drop since 2020 after fourth-quarter cloud contract growth disappoints
It's the biggest daily fall since October 26 2020, when stock dropped 22% following disappointing third quarter results
TL;DR
- SAP's stock fell as much as 16% due to weaker-than-expected cloud contract backlog growth in Q4.
- The current cloud backlog grew by 16% to 21.1 billion euros, below the anticipated 26% growth.
- SAP cited large transformational deals and legal termination clauses for the reduced growth rate.
- The company guided for a slight deceleration in cloud backlog growth in 2026.
- Total revenue rose slightly to 9.7 billion euros and operating profit increased to 2.6 billion euros in Q4.
- Investors are concerned about AI's potential to disrupt legacy software providers.
- SAP's CFO highlighted the need to integrate AI into their R&D portfolio to maintain a competitive advantage.
Continue reading the original article