SAP SE (SAP) traded lower as the market focused on the company’s first-quarter 2026 earnings day (April 23, 2026). With the quarter’s results due today and a scheduled analyst call later in the day, traders appeared to de-risk into the print, with cloud backlog the key swing factor after earlier concerns about growth timing and deal mix.

The setup reflects heightened sensitivity to SAP’s current cloud backlog trend. In its most recent quarterly materials, SAP highlighted that large transformational deals with revenue ramps in later years and government-style termination clauses can weigh on near-term backlog growth rates, and the company’s 2026 outlook explicitly pointed to constant-currency current cloud backlog growth “slightly decelerating” versus 2025. That puts outsized pressure on today’s Q1 update to show that backlog conversion to revenue is progressing and that demand is not deteriorating beneath the headline growth rates.

SAP entered 2026 after reporting FY2025 cloud revenue of €21.02 billion (+23% year over year) and current cloud backlog of €21.05 billion in Q4 2025 (+16% reported; +25% at constant currencies), alongside a new two-year share repurchase authorization of up to €10 billion. Even with those figures, the market has stayed cautious because guidance signaled decelerating backlog growth and because investors want clearer evidence that SAP’s AI-driven sales motion is translating into durable, near-term cloud revenue acceleration rather than back-end–loaded ramps.

Today’s report and management commentary will likely steer the next move, especially any discussion of (1) current cloud backlog growth and mix, (2) cloud ERP Suite growth, (3) operating margin trajectory, and (4) whether the company reiterates or adjusts 2026 targets for cloud revenue (€25.8–€26.2 billion at constant currencies) and non-IFRS operating profit (€11.9–€12.3 billion at constant currencies).