SAP SE's stock plummeted 11.27% in pre-market trading on Thursday, following the release of its fourth-quarter and full-year 2025 financial results.

The sharp decline came as the German software giant reported slower-than-expected growth in its current cloud backlog and provided 2026 guidance that analysts viewed as underwhelming. In the fourth quarter, the company's current cloud backlog grew 25% at constant currencies, slightly missing consensus estimates of approximately 26%. For 2026, SAP expects a slight deceleration from the 25% growth rate achieved in 2025.

Analysts at Citi noted that SAP's 2026 revenue outlook points to only limited growth acceleration and is marginally below consensus expectations. They highlighted that larger transformational deals signed in the previous quarter with gradual revenue ramp-ups mean some income will be recognized beyond the current year. According to Citi, SAP needed an all-round acceleration to counter downbeat investor sentiment toward the software sector, but this update failed to clear the high bar set by market expectations.