SAP shares see biggest drop since 2020 after fourth-quarter cloud contract growth disappoints

Shares of SAP, the prominent German software enterprise, experienced a sharp decline of up to 11% on Thursday after the company revealed disappointing growth in its cloud contract backlog for the fourth quarter. This marks the steepest drop since October 2020, when the stock fell 22% due to underwhelming third-quarter performance. Currently, SAP’s shares are on track to close at their lowest level since mid-2024, with a recent trading drop of 9.7%. The company reported that its cloud backlog saw a 16% increase in the fourth quarter, reaching 21.1 billion euros (approximately $25.3 billion). This figure falls short of the ambitious 26% growth target set by Chief Executive Officer Christian Klein, as noted by Bloomberg. This developing story will continue to be updated as more information becomes available.