SAP SE's stock plummeted 10.46% in pre-market trading following the release of its fourth-quarter and full-year 2025 financial results.

The sharp decline came after analysts at Citi noted that the company's 2026 financial guidance might look underwhelming in light of investors' high expectations. According to Citi, SAP's revenue outlook for 2026 points to a limited growth acceleration and is marginally below consensus expectations. The analysts highlighted that larger deals signed in the previous quarter with a gradual ramp-up mean some revenue will be recognized beyond the current year.

Citi's analysis suggested that SAP needed an all-round acceleration to counter downbeat investor sentiment toward the software sector, and this update might not be sufficient to meet the high bar set by market expectations, leading to the significant sell-off.