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SAP Stock Plummets Amidst AI Fears and Missed Forecasts
29 Jan
Summary
- SAP shares experienced their sharpest daily decline since October 2020.
- Fourth-quarter revenue met expectations, but cloud backlog fell short.
- Growing concerns over AI disruption are impacting software stocks.
As of January 29, 2026, shares of Europe's largest software maker, SAP, are experiencing their most significant daily decline since October 2020, with a drop exceeding 10%. This steep fall follows the release of fourth-quarter results which, despite meeting revenue estimates, revealed a cloud backlog and a 2026 cloud revenue forecast that fell short of market expectations.
The situation for SAP mirrors broader trends affecting software companies in both Europe and on Wall Street. Growing apprehension regarding the disruptive potential of Artificial Intelligence has cast a shadow over the sector. By 0852 GMT on January 29, 2026, SAP's stock had fallen 11%, having earlier touched its lowest level since June 2024. This downturn has contributed to a substantial decrease in the company's market value from its peak in 2025.
