SAP Raises 2017 Forecasts as Cloud Business Growth Quickens
- Company is weathering transition to software over Internet
- Shares fall slightly as software profit margin set to dip
SAP’s McDermott Vows to Continue Strong Dividend
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SAP SE showed progress in remaking itself as a supplier of cloud computing software as more customers adopted a revamped version of its main product, prompting it to boost sales and profit forecasts for next year.
The company on Friday raised the top end of its forecast for 2017 sales by 7 percent to as much as 23.5 billion euros ($25.5 billion), crediting increasing adoption of Internet-based software that generates more predictable revenue than software licenses. It also increased the lower end of its operating profit outlook for next year.