SAP Stock Hits Record High as Demand for Its Cloud Products Soars

Core Insights - SAP exceeded third-quarter profit and sales estimates, driven by strong demand for its cloud offerings and artificial intelligence (AI) products [1][2] - The company raised its sales outlook, with U.S.-listed shares reaching a record high [1][2] Financial Performance - SAP reported third-quarter earnings per share (EPS) of 1.25 euros ($1.35) and revenue of 8.47 billion euros ($9.16 billion), reflecting a 9% increase [1] - Cloud revenue surged 25% to 4.35 billion euros, while total cloud and software sales rose 11% to 7.43 billion euros [1] - The current cloud backlog increased by 25% to 15.4 billion euros [1] Business Strategy - CEO Christian Klein highlighted significant progress in business AI, noting that many cloud deals in Q3 included AI use cases [2] - SAP now anticipates full-year cloud and software revenue between 29.5 billion euros and 29.8 billion euros, raising the midpoint by 400 million euros [2] - The company expects free cash flow to range from 3.5 billion euros to 4.0 billion euros, an increase from previous estimates [2] Market Reaction - SAP's American depositary receipts (ADRs) rose about 2% to $233.41, having previously reached a record of $237.71 [2] - The ADRs have increased by over 50% this year [2]