German software giant SAP plunged as much as 11% Thursday after reporting weaker-than-expected growth in its cloud contract backlog in the fourth quarter.
It’s the biggest daily fall since October 2020, when its stock dropped 22% following disappointing third-quarter results. The stock is also on track to close at its lowest price since mid-2024.
Shares were last trading down 9.7%.
SAP’s current cloud backlog rose by 16% in the fourth quarter to 21.1 billion euros [$25.3 billion]. Chief Executive Officer Christian Klein has previously said SAP was targeting 26% growth, Bloomberg reported.
“Large transformational deals with high cloud revenue ramps in outer years and termination for convenience clauses required by law negatively impacted fourth quarter constant currency current cloud backlog growth by approximately 1 percentage point,” SAP said in its earnings statement.
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