Adobe posts record quarter, lifts guidance as AI push pays off Proactive uses images sourced from Shutterstock
Adobe Inc (NASDAQ:ADBE) reported record third-quarter results that beat Wall Street estimates and raised its full-year revenue and profit guidance, as the software company’s push into artificial intelligence tools continues to gain traction.
The company posted third-quarter revenue of $6.8 billion, up 13% from a year earlier and ahead of analyst estimates of $6.69 billion. Adjusted earnings per share came in at $6.13, topping estimates of $6.09 and up 15% year-over-year.
Annual recurring revenue reached $27.5 billion, with AI-first ARR growth exceeding 150%.
“Adobe delivered record Q3 results, reflecting the strength of our AI innovation, expanding customer reach and leadership across creativity, productivity and customer experience,” said Shantanu Narayen, CEO, Adobe.
For the full fiscal year, Adobe now expects revenue of $26.58 billion to $26.63 billion, above the previous estimate of $26.51 billion, and earnings per share of $24.45 to $24.50, topping the $24.36 estimate. The company guided for ARR growth of 10.2% year-over-year.
For the fourth quarter, Adobe forecast revenue of $6.80 billion to $6.85 billion, compared with estimates of $6.84 billion, and EPS of $6.30 to $6.35 against estimates of $6.32.
“Adobe delivered double-digit revenue and EPS growth in Q3 and we’re raising full year revenue and EPS targets,” said Steve Day, senior vice president and interim CFO, Adobe.
By segment, Customer Groups generated $6.6 billion in net revenue, up 14% year-over-year. Business Professionals & Consumers revenue rose 16% to $1.9 billion, while Creative & Marketing Professionals revenue grew 13% to $4.7 billion.
The company also said it surpassed 1 billion monthly active users during the quarter.
“Reaching a landmark of more than one billion monthly active users is a defining moment for Adobe, and I have confidence that Anil will build on this momentum to drive Adobe’s next chapter of growth and innovation in the AI era,” Narayen said.
Shares of Adobe rose around 1.3% afterhours.