SAP stock plunges after disappointing cloud forecasts, loses top spot in German market

SAP's stock price fell sharply, dropping as much as 16% in its worst single-day loss in years. The drop came after the German software giant announced its 2026 cloud revenue forecasts, which disappointed investors and raised concerns about the growth of that part of its business.

The sell-off was significant enough to briefly pull Germany's main stock index, the DAX, into negative territory. It also caused SAP to lose its position as the most valuable company in Germany, with Siemens briefly taking the top spot. Despite the cloud forecast concerns, SAP did meet its revenue targets for the last quarter of 2023.

Separately, SAP announced new partnerships to use artificial intelligence in other sectors. It is working with Fresenius to advance AI use in hospitals and with Syngenta to scale AI-assisted agriculture.