SAP Stock Falls On Revenue Miss, Weak Cloud Order Backlog

Core Insights - SAP reported third-quarter earnings of 1.59 euros per share, a 37% increase year-over-year, but revenue of 9.076 billion euros (approximately $10.54 billion) fell short of analyst expectations [1][4] - Cloud computing subscriptions and support revenue rose 27% to 5.29 billion euros (about $6.14 billion), slightly below estimates [2] - Current Cloud Backlog (CCB) increased by 23% to 18.8 billion euros (about $21.8 billion), with a constant currency growth of 27% [3] Financial Performance - SAP's adjusted EPS was higher than the estimated 1.49 euros, while revenue was below the expected 9.11 billion euros [1] - The company's CCB growth was below the anticipated 27%, indicating potential concerns regarding future revenue recognition [3] Market Reaction - Following the earnings report, SAP stock initially fell in extended trading but later rose over 1% to 279 [4] - As of the latest session, SAP stock had advanced 14% in 2025 [4] Legal and Competitive Landscape - The U.S. Supreme Court declined to hear SAP's appeal regarding a lawsuit from Teradata, which accused SAP of antitrust violations [4] - SAP is transitioning from software-license sales to subscription-based cloud services, similar to its competitor Oracle [4]