European software giant SAP faced a dramatic sell-off on Thursday, with its shares sliding more than 10%—marking the steepest daily decline since October 2020. The drop deepened a prolonged downturn that has erased roughly $150 billion from the company’s market value since its 2025 peak.

Investors reacted negatively despite the company reporting fourth-quarter revenue in line with expectations. The disappointment came from SAP’s cloud backlog and 2026 cloud revenue forecast, both of which fell short of market hopes.

Analysts said the results failed to provide the clear momentum needed to reverse the broader sector’s cautious sentiment.

“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.

The decline mirrors a wider slump affecting major software firms in Europe and the U.S., where concerns over AI disruption have intensified. Investors are increasingly wary of how artificial intelligence will reshape demand and growth prospects across the industry.

By 0852 GMT, SAP shares were down about 11%, having earlier touched their lowest level since June 2024.