SAP posted higher revenue and profit in the third quarter boosted by artificial-intelligence demand, and raised its full-year outlook.
SAP shares rose 3% on the earnings.
Reporting on a non-IFRS basis, the German business-software company said total revenue rose 9% to 8.47 billion euros (US $9.21 billion). Revenue from cloud and software climbed to EUR7.43 billion from EUR6.68 billion a year earlier.
Chief Executive Christian Klein said a significant number of the company's cloud deals in the quarter included AI-use cases.
Profit after tax increased to EUR1.44 billion from EUR1.35 billion. Operating profit, which is more closely watched for software companies, jumped 27% to EUR2.24 billion.
SAP, like other European software companies, presents its figures as two sets of numbers. One set is based on the International Financial Reporting Standards, an international accounting method that seeks to provide a global reporting standard, though analysts and investors tend to follow SAP's non-IFRS numbers, which exclude restructuring expenses and acquisition-related charges.
For the year, SAP increased its non-IFRS outlooks at constant currencies for cloud and software revenue, operating profit and free cash flow. It now expects cloud and software revenue between EUR29.5 billion and EUR29.8 billion, up from a prior projection of between EUR29 billion and EUR29.5 billion; operating profit between EUR7.8 billion and EUR8 billion, up from between EUR7.6 billion and EUR7.9 billion; and free cash flow of EUR4 billion, up from EUR3.5 billion.
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