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Home > Finance > SAP shares set for biggest daily drop since 2020

SAP shares set for biggest daily drop since 2020

Published by Global Banking and Finance Review

Posted on January 29, 2026

1 min read

Last updated: January 29, 2026

SAP shares set for biggest daily drop since 2020 - Finance news and analysis from Global Banking & Finance Review

Tags:financial crisis market capitalisation cloud-based solutions

Quick Summary

SAP shares dropped over 10% due to cloud revenue concerns, marking the largest decline since 2020 and impacting market value significantly.

SAP Shares Face Largest Drop Since 2020 Amid Cloud Revenue Concerns

SAP's Financial Performance and Market Reaction

MILAN, Jan 29 (Reuters) - Shares in Europe's largest software maker SAP were set for their steepest daily fall since October 2020 on Thursday, down over 10% after results failed to stem a slide that has wiped around $150 billion off its market value from its 2025 peak.

Analyst Insights

The German group reported fourth-quarter revenue that met market estimates, though its cloud backlog and 2026 cloud revenue forecast missed expectations.

Sector Sentiment and Challenges

"SAP needed an all-round acceleration to fight the trough sector sentiment, and with puts and takes in the update we see shares underperforming," said Citi analyst Balajee Tirupati.

Like other software makers in Europe and on Wall Street, SAP has been dragged by growing fears of AI disruption.

By 0852 GMT, the stock was down 11% after earlier hitting its lowest level since June 2024.

(Reporting by Danilo Masoni, editing by Alun John)

Key Takeaways

•SAP shares fell over 10%, marking the largest drop since 2020.
•The decline is due to concerns over cloud revenue forecasts.
•SAP's market value has decreased by $150 billion since 2025.
•Analysts cite AI disruption fears affecting software makers.
•SAP's stock hit its lowest level since June 2024.

Frequently Asked Questions about SAP shares set for biggest daily drop since 2020

1What is market capitalisation?

Market capitalisation refers to the total market value of a company's outstanding shares of stock, calculated by multiplying the share price by the total number of shares.

2What is cloud revenue?

Cloud revenue is the income generated from services provided over the internet, such as software, storage, and infrastructure, typically offered on a subscription basis.

3What is a financial performance report?

A financial performance report is a document that summarizes a company's financial results over a specific period, including revenues, expenses, and profits.

SAP's Financial Performance and Market Reaction

Analyst Insights

The German group reported fourth-quarter revenue that met market estimates, though its cloud backlog and 2026 cloud revenue forecast missed expectations.

Sector Sentiment and Challenges

"SAP needed an all-round acceleration to fight the trough sector sentiment, and with puts and takes in the update we see shares underperforming," said Citi analyst Balajee Tirupati.

Like other software makers in Europe and on Wall Street, SAP has been dragged by growing fears of AI disruption.

By 0852 GMT, the stock was down 11% after earlier hitting its lowest level since June 2024.

(Reporting by Danilo Masoni, editing by Alun John)

Key Takeaways

•SAP shares fell over 10%, marking the largest drop since 2020.

•The decline is due to concerns over cloud revenue forecasts.

•SAP's market value has decreased by $150 billion since 2025.

•Analysts cite AI disruption fears affecting software makers.

•SAP's stock hit its lowest level since June 2024.

Frequently Asked Questions

1What is market capitalisation?

Market capitalisation refers to the total market value of a company's outstanding shares of stock, calculated by multiplying the share price by the total number of shares.

2What is cloud revenue?

Cloud revenue is the income generated from services provided over the internet, such as software, storage, and infrastructure, typically offered on a subscription basis.

3What is a financial performance report?

A financial performance report is a document that summarizes a company's financial results over a specific period, including revenues, expenses, and profits.