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SAP's stock plunge deepens as security flaws and cloud slowdown rattle investors

A once-dominant tech giant now grapples with plummeting confidence. Can SAP's upcoming earnings report reverse its steepest stock decline in years?

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2 min read
The image shows a group of people wearing uniforms and hats, with a banner in the background. At...
The image shows a group of people wearing uniforms and hats, with a banner in the background. At the top and bottom of the image, there is text that reads "The current ranking system of the SAP was adopted on 1 April 2010".

SAP's stock plunge deepens as security flaws and cloud slowdown rattle investors

SAP is facing growing challenges as its share price tumbles and analysts cut expectations. The German software giant, once a market favourite, has seen its value drop sharply in 2026 due to security concerns and weaker-than-expected cloud growth. Investors are now watching closely ahead of its first-quarter results.

The company's troubles began with the discovery of two serious security flaws in its enterprise systems. These vulnerabilities shook customer trust and contributed to a steep decline in SAP's stock. By March 13, 2026, shares had fallen to €165.74—near a 52-week low—despite strong 2025 financials, including a 23% rise in cloud revenue to €21 billion.

Analysts have responded by lowering their targets. BMO Capital reduced its price forecast from $320 to $245, while Barclays cut its target from $348 to $283. Zacks Research also downgraded SAP from Strong Buy to Hold. These adjustments reflect concerns over missed cloud backlog targets and fading momentum.

Year-to-date losses for shareholders now stand at nearly 29%. The company's market capitalisation has slipped to around €193-194 billion, down from higher levels suggested by its 2025 share price of €167. Despite these setbacks, SAP continues its €10 billion share buyback programme, and its AI assistant, Joule, remains active in over 210 global use cases.

The next key moment for SAP arrives on April 23, 2026, with the release of its first-quarter earnings. Investors will be looking for signs of recovery or further pressure on growth.

SAP's stock has taken a hit from security issues and slower cloud expansion. With analysts lowering expectations and shareholders facing losses, the upcoming earnings report will be critical. The company's ability to address these challenges could determine whether confidence rebounds or declines further.

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