Shares of German software giant SAP plunged 11% on Thursday after the company reported lower-than-expected growth in its cloud contract backlog in the fourth quarter.

It was the biggest one-day drop since October 2020, when the company’s shares fell 22% Disappointing third-quarter results. The stock is also on track to close at its lowest price since mid-2024.

Shares last traded down 9.7%.

SAP’s current cloud order backlog grew 16% in the fourth quarter to 21.1 billion euros ($25.3 billion). UBS analysts noted on Thursday that cloud backlog growth would be “disappointing” based on previous expectations for 26% growth.

“High cloud revenue growth in external years and the termination of legally required facilitation terms from large transformation transactions negatively impacted current cloud backlog growth in the fourth quarter at constant currency by approximately 1 percentage point,” SAP said in the earnings release.

CEO Christian Klein said the cloud backlog in the final quarter of the year lays a “strong foundation” for accelerated revenue growth in 2027.

However, the German company does expect cloud backlog growth to “moderate slightly” in 2026.

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