The company projected cloud revenue between €21.6 billion and €21.9 billion ($25.2 billion–$25.5 billion) for the year, but noted that actual results would likely land near the bottom of that range. The announcement triggered volatility in SAP’s stock, which initially rose by as much as 3% before reversing to trade about 2% lower at 09:35 GMT, in tandem with a drop in its U.S.-listed shares.
Market reactions were mixed. “We did not see an ‘Oracle moment,’ but some fears about a weak report looming did not come true either,” a local trader said, referencing Oracle’s recent upbeat commentary on its cloud infrastructure business that had lifted sentiment across the sector.
Analysts, however, pointed to encouraging signs beneath the headline figures. SAP reported that its cloud backlog—representing contracted but not yet realized revenue—rose 27% year-on-year, exceeding expectations and reflecting sustained demand despite growing investor concerns about how artificial intelligence might disrupt the traditional software industry.
“The cloud backlog growth was especially strong given broader concerns about risks to software players caused by AI,” JPMorgan wrote in a client note.
SAP, which briefly held the title of Europe’s largest company by market capitalisation in March, has since slipped to third place behind Dutch semiconductor equipment maker ASML and French luxury conglomerate LVMH. The decline partly reflects investor caution over AI’s long-term impact on enterprise software models.
Up to Wednesday’s close, SAP shares had gained just 0.2% in 2025, following a remarkable 70% rally last year. Despite the slower start, analysts say the company remains well-positioned as it deepens its transition toward cloud-based services, a shift seen as vital for its competitiveness in an AI-driven market.