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Shares of SAP (SAP) - Get SAP SE ADS Report  hit an all-time high in European trading after the company raised its operating profit outlook and U.S. activist investor Elliott revealed a €1.2 billion ($1.3 billion) stake in German cloud computing company.

SAP rose 11.65% to €113.70 a share in Frankfurt, marking its best performance since November 2008. In the U.S., American depositary receipts were up 10.3% to $126.57.

SAP reported that cloud revenue for the quarter exceeded €1.5 billio for the first time in the period, a 45% increase from a year ago. Cloud, software and total revenue was up double digits in the quarter. 

SAP is Europe's most valuable tech company and the company also recently announced that it plans to expand adjusted operating margins by a total of 5% through 2023. 

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"SAP's results are another illustration that we are a rarity in the enterprise applications software industry. We have a strong core business, the fastest growing cloud at scale in enterprise software and impressive non-IFRS oper-ating profit growth. We are focused on leading a best-run SAP so we can drive significant margin expansion in the quarters ahead," said CEO Bill McDermott.

Meanwhile, Elliott's stake of about 1% in the company also helped lift the stock Wednesday. 

"Elliott is highly supportive of the initiatives announced today, and we commend CEO Bill McDermott, CFO Luka Mucic and the entire SAP team for taking these steps," Elliott partner Jesse Cohn and portfolio manager Jason Genrich said in a statement Wednesday. "SAP is one of the great technology franchises in the world and one of the only scale software businesses with growing on-premise revenue alongside 30%+ growth in cloud revenue. The company's stock has been consistently undervalued relative to its revenue growth, and today's announcement lays the groundwork for substantial value realization."