SAP SE stock plummeted 5.08% in intraday trading on Wednesday, as the German business-software giant grappled with the impact of tariff uncertainty on client decisions and reported second-quarter revenue that fell short of analysts' expectations.

The company revealed that some clients, particularly those in U.S. public administration and tariff-exposed industries such as manufacturing, were taking longer to sign up for SAP's services. This hesitation is attributed to the ongoing uncertainty surrounding President Trump's tariffs, which has led to a more cautious approach in IT spending among affected sectors. As a result, SAP's cloud revenue for the second quarter, while growing 24% to €5.13 billion, missed estimates of €5.18 billion.

Despite these challenges, SAP maintained its previous full-year guidance, demonstrating a prudent approach in the face of economic uncertainty. The company continues to expect non-IFRS operating profit between €10.3 billion and €10.6 billion, cloud revenue ranging from €21.6 billion to €21.9 billion, and free cash flow of roughly €8 billion for the year. This cautious outlook, combined with the revenue miss and client hesitation, appears to have triggered the significant stock sell-off as investors reassess the company's growth prospects in the current economic climate.