Focus: U.S. Stock Q4 2025 Earnings Reports SAP SE, Europe's largest software company, experienced its most significant single-day decline since October 2020 on Thursday, with its stock price plummeting over 10%. The company's latest earnings report failed to halt the downward trend, resulting in a market capitalization loss of approximately $150 billion from its 2025 peak.
The German enterprise reported fourth-quarter revenue that aligned with market expectations; however, both its cloud business backlog and its 2026 cloud revenue forecast fell short of analyst projections.
Citigroup analyst Balaji Thirupathi commented, "SAP needed to demonstrate acceleration across the board to counter the prevailing sector-wide pessimism. Instead, this earnings update presented a mixed picture, making it highly probable the stock will underperform the market going forward."
Similar to other software firms in Europe and on Wall Street, SAP's share price is being weighed down by growing investor apprehension regarding the potential for industry disruption caused by artificial intelligence.
As of 08:52 GMT, the decline in SAP's share price had deepened to 11%, after the stock earlier touched its lowest level since June 2024.