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

American depositary receipts (ADRs) of SAP (SAP) traded at an all-time high Tuesday, a day after the German business software giant reported better-than-anticipated results and boosted its sales outlook on booming demand for its cloud products.

SAP posted third-quarter earnings per share (EPS) of 1.25 euros ($1.35), with revenue rising 9% to 8.47 billion euros ($9.16 billion). Both were above consensus estimates of analysts polled by Visible Alpha.

Cloud revenue jumped 25% to EUR4.35 billion, and total cloud and software sales were up 11% to EUR7.43 billion. The company noted that its current cloud backlog also increased 25% to EUR15.4 billion.

Chief Executive Officer (CEO) Christian Klein explained that while demand for its cloud products was solid, “even more importantly, we are making strong progress” on business artificial intelligence (AI), adding that “a significant part of our cloud deals in Q3 included AI use cases.”

SAP now expects full-year cloud and software revenue of EUR29.5 …