German software giant SAP fell as much as 11% on Thursday after reporting weaker-than-expected fourth-quarter cloud contract balance growth.

It’s the largest single-day decline since October 2020, when the company’s stock fell 22% following disappointing third-quarter results. Stock prices are also on track to end at their lowest since mid-2024.

The stock price fell 9.7% in recent trading.

SAP’s current cloud order backlog increased by 16% in the fourth quarter to €21.1 billion [$25.3 billion]. Analysts at UBS said on Thursday that the increase in cloud backlogs would be “disappointing” based on previous expectations of 26% growth.

“A large transformative transaction with significant year-end cloud revenue accretion and legally required termination provisions negatively impacted constant currency current cloud backlog growth by approximately 1 percentage point in the fourth quarter,” SAP said in its earnings call.

Chief Executive Officer Christian Klein said the current cloud backlog in the final quarter of this year has laid a “solid foundation” for accelerating revenue growth through 2027.

However, the German company said it expects cloud order backlog growth to “decelerate slightly” in 2026.

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