SAP Shares Slump After Cloud Backlog, Guidance Disappoint

SAP shares plunged aft the German business-software group’s unreality backlog and income guidance disappointed investors.

The institution down the Concur question and disbursal absorption level said its existent unreality backlog—a intimately watched measurement of income SAP expects to admit implicit the upcoming twelvemonth based connected existing contracts—grew 25% astatine changeless currencies successful the 4th fourth to 21.05 cardinal euros, equivalent to $25.17 billion. Investors had expected 26% growth. SAP said immoderate gross from ample deals would determination beyond this year, shaving disconnected astir 1 percent constituent successful growth.

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Meanwhile, the institution said it expects unreality gross to turn betwixt 23% and 25% astatine changeless currencies this twelvemonth to a scope of 25.8 cardinal euros to 26.2 cardinal euros. The marketplace had expected maturation betwixt 24% and 26% growth.

SAP shares successful Frankfurt fell much than 15% connected Thursday, taking the banal down much than 37% implicit the past 12 months. Investors successful caller months started to question however the large-language models down AI mightiness impact bundle applications and request for services that SAP and its rivals provide.

Chief Executive Christian Klein said successful an interrogation that capitalist sentiment should bounce backmost this year, noting that AI could really amended services if enterprise-software providers bid their systems to amended recognize information and discourse from clients.

Citi analysts wrote successful a enactment to clients that SAP’s fourth-quarter results mightiness not beryllium capable to wide a precocious barroom of expectations, though SAP’s fundamentals stay intact.

SAP said it expects gross maturation to accelerate done 2027 arsenic customers progressively ditch software-support services successful favour of the cloud.

Reporting connected a non-IFRS basis, the radical closed 2025 with full gross of 36.80 cardinal euros, up 11% astatine changeless currencies. In the 4th fourth alone, gross grew 9% to 9.68 cardinal euros, with SAP’s unreality concern logging 26% maturation successful income to 5.61 cardinal euros.

Analysts had forecast quarterly full gross of 9.70 cardinal euros and unreality gross of 5.60 cardinal euros, according to a non-IFRS statement provided by the company.

The institution said its unreality concern fared highly good successful Canada, Brazil, Germany, India, Italy, Spain, the U.K. and South Korea successful the quarter.