Adobe reported fiscal third-quarter results that topped analysts’ estimates. The design software maker’s shares rose in extended trading.
Here’s how the company did in comparison with LSEG consensus:
- Earnings per share: $5.31 adjusted vs. $5.18 expected
- Revenue: $5.99 billion vs. $5.91 billion expected
Revenue in the quarter ended Aug. 29 increased 11% from $5.41 billion a year earlier, Adobe said in a statement. Net income rose to $1.77 billion, or $4.18 per share, from $1.68 billion, or $3.76 per share, a year ago.
For the fourth quarter, the company says adjusted earnings per share will be $5.35 to $5.40, topping the average analyst estimate of $5.34. Adobe’s guidance for revenue for the quarter is $6.08 billion to $6.13 billion, while analysts expected $6.08 billion, according to LSEG.
Adobe said it expects annualized revenue in its digital media business to increase 11.3% for the fiscal year, up from a prior forecast of 11% growth. Digital media revenue for the fourth quarter will be $4.53 billion to $4.56 billion, beating the $4.51 billion average estimate, according to StreetAccount.
The company has been infusing artificial intelligence across its product portfolio.
“Our AI-influenced ARR has now surpassed $5 billion, up from over $3.5 billion exiting fiscal year 2024 and we have already surpassed our full year AI-first ending ARR target,” CEO Shantanu Narayen told analysts on a conference call.
As of Thursday’s close, Adobe’s stock was down 21% this year, badly underperforming tech peers and the broader Nasdaq, which is up 14%.
