SAP reported a disappointing operating profit in Q4, with declining margins due to its shift into the less lucrative cloud business. In addition, cloud bookings grew at a slower pace over the fourth quarter compared to previous quarters. Management revised: i) its 2020 targets, with higher sales but non-IFRS operating profit unchanged, hence reflecting lower margins and, ii) 2023 targets provide less margin expansion than expected as well. A restructuring plan will be announced in 2019.