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SAP Shares Rise After Earnings Beat Estimates on Cloud Revenue

SAP SE reported third-quarter sales and operating profit that beat analysts’ estimates, in a sign that the German business-software maker is managing an industrywide shift to cloud-computing programs without sacrificing margins. The stock jumped.

Adjusted revenue rose 17 percent to 4.99 billion euros ($5.7 billion), SAP said Tuesday, citing preliminary numbers. Adjusted operating profit climbed 19 percent to 1.62 billion euros. Analysts had predicted operating profit of 1.53 billion euros on sales of 4.93 billion euros, according to data compiled by Bloomberg. Walldorf, Germany-based SAP had been scheduled to release earnings Oct. 20.

SAP is adding more software delivered as an online service to respond to the way IT departments are buying, even as those subscriptions weigh on short-term profit. The company is gaining market share in such cloud products, said Thomas Becker, an analyst at Commerzbank AG in Frankfurt.

SAP’s report is “a straight beat which is impressive especially versus Oracle’s performance and weak emerging markets,” Becker said in a note. “Costs remained under control and cloud margins...