Adobe Delivers Record Revenue, But Its Outlook Underwhelms

Adobe (ADBE) reported record quarterly revenue above analysts’ expectations, though its outlook disappointed. 

The Creative Cloud developer’s revenue climbed 10% year-over-year to a record $5.71 billion, above the analyst consensus from Visible Alpha. Adjusted earnings of $2.22 billion, or $5.08 per share, rose from $2.05 billion, or $4.48 per share, a year earlier and topped estimates. 

Adobe’s Digital Media arm, which includes Creative Cloud subscriptions, saw revenue of $4.23 billion, up 11% year-over-year and exceeding analysts’ projections.

CEO Shantanu Narayen said Adobe is “well-positioned to capitalize on the acceleration of the creative economy driven by AI.” The results come ahead of the company’s Adobe Summit event next week, with analysts saying they’ll be watching for updates on generative AI metrics.

Looking ahead, Adobe maintained its full-year revenue outlook of $23.3 billion to $23.55 billion, and adjusted earnings per share of $20.20 to $20.50, both below analyst consensus projections at the midpoint.

Shares of Adobe fell 2% in extended trading Wednesday. They’ve lost about a fifth of their value over the past 12 months through Wednesday’s close.