Shares of E2open Parent Holdings, Inc. (ETWO) plunged 5.04% during intraday trading on Monday following the release of the company's disappointing Full Year 2025 financial results. The significant drop in stock price reflects investors' concerns over the company's performance and missed earnings expectations.

According to the earnings report, E2open Parent Holdings posted revenue of $607.7 million for the fiscal year 2025, representing a 4.2% decrease compared to the previous year. While the revenue figure was in line with analyst estimates, the company's earnings per share (EPS) fell short of expectations by a substantial 54%. Despite narrowing its net loss by 38% to $659.8 million, the company still reported a loss of $2.14 per share, which, although an improvement from the $3.52 loss per share in fiscal year 2024, failed to meet market projections.

The earnings miss and declining revenue have raised concerns about E2open Parent Holdings' growth prospects in the competitive software industry. While the company's shares had seen a 14% increase in the week leading up to the earnings release, today's sharp decline erases those gains and highlights the market's negative reaction to the financial results. Investors and analysts will likely be closely monitoring the company's future performance and its ability to return to growth, especially given the forecast of only 2.1% annual revenue growth over the next three years, which falls significantly below the 13% growth expected for the US Software industry as a whole.