German software giant SAP saw its stock plummet by as much as 11% after reporting disappointing growth in its cloud contract backlog for the fourth quarter. This marks the biggest daily drop since October 2020, with shares currently down 9.7% and on track to close at their lowest price since mid-2024.

SAP’s current cloud backlog increased by 16% in the fourth quarter, reaching 21.1 billion euros ($25.3 billion). CEO Christian Klein had aimed for 26% growth, but issues with transformational deals and termination clauses impacted growth negatively. The company highlighted these challenges in its earnings statement.

Investors are closely watching SAP’s performance as the stock continues to experience volatility. The company’s struggles with cloud revenue growth are a key concern, with the stock facing significant downward pressure following the latest earnings report.

For more updates on this developing story, stay tuned for the latest news on SAP’s financial performance and stock movements. Keep an eye on market developments as investors assess the impact of SAP’s challenges on its long-term growth prospects.

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