DAX Tumbles; SAP Tanks 13% After Earnings Miss Estimates

(RTTNews) - The German market's benchmark index DAX tumbled Thursday morning, hurt by a sell-off in SAP and Deutsche Bank stocks, and a downward revision by the government in the nation's growth projections.

Investors also digested the Federal Reserve's monetary policy announcement, and continued to follow geopolitical developments.

The Fed, which left its interest rates unchanged on Wednesday, said the decision came amid elevated uncertainty about the economic outlook.

The central bank also said it remains attentive to the risks to both sides of its dual mandate of maximum employment and inflation at the rate of 2% over the longer run.

A slew of German economic data, including reports on GDP, inflation, import prices and unemployment, are due on Friday.

The DAX was down 295.25 points or 1.19% at 24.548.29 a little while ago.

On Wednesday, German government reduced its growth projections for 2026 and 2027, citing external challenges and weak domestic momentum.

SAP suffered its biggest single-day drop in over five year, tanking more than 13% this morning, after the software major's fourth-quarter earnings missed estimates. SAP reported that its fourth quarter profit after tax was 1.9 billion euros, up 17% from a year ago. IFRS basic earnings per share increased 15% to 1.58 euros. Non-IFRS operating profit was up 16% to 2.83 billion euros, and was up 21% at constant currencies. Non-IFRS basic earnings per share increased 16% to 1.62 euros.

For 2026, SAP expects: cloud revenue at constant currencies of 25.8 - 26.2 billion euros, up 23% to 25% at constant currencies; cloud and software revenue at constant currencies of 36.3 - 36.8 billion euros, up 12% to 13% at constant currencies, and non-IFRS operating profit at constant currencies of 11.9 - 12.3 billion euros, up 14% to 18% at constant currencies.

Deutsche Bank slid nearly 2% despite posting its largest annual profit since 2007. The lender's earnings totaled EUR1.503 billion, or EUR0.76 per share in the fiscal year 2025, compared with EUR304 million, or EUR0.15 per share, a year earlier. The bank's revenue for the period rose 6.9% to EUR7.726 billion from EUR7.224 billion last year.

Symrise dropped about 2.7%. Bayer and Fresenius also declined sharply, while Rheinmetall, Commerzbank and Scout24 posted moderate losses.

Siemens Energy climbed 3.1%, Siemens gained 2.7% and GEA Group jumped 2.2%. Volkswagen (1.7%), Mercedes-Benz (1.5%), Continental (1.4%), MTU Aero Engines (1.2%), Qiagen (1.2%), Deutsche Post (1.1%) and Deutsche Boerse (1%) also moved notably higher.