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SAP shares see biggest drop since 2020 after fourth-quarter cloud contract growth disappoints
['Kai Nicol-Schwarz', 'In Kains']
International: Top News And Analysis
German software giant SAP plunged as much as 14% Thursday after reporting weaker-than-expected growth in its cloud contract backlog in the fourth quarter.
SAP's current cloud backlog rose by 16% in the fourth quarter to 21.1 billion euros [$25.3 billion].
UBS analysts noted Thursday that the cloud backlog growth will be a "disappointment" based on previous expectations of 26% growth.
Chief Executive Officer Christian Klein said the current cloud backlog in the last quarter of the year had laid a "strong foundation" to accelerate revenue growth through 2027.
The German company did however, guide for cloud backlog growth to "slightly decelerate" in 2026.