Adobe (ADBE) issued a revenue outlook that came in below analysts’ expectations, sending shares lower in extended trading Wednesday.
The Creative Cloud software provider projected 2025 revenue of $23.3 billion to $23.55 billion, below the analyst consensus of $23.77 billion from Visible Alpha. Its first-quarter revenue forecast of $5.63 billion to $5.68 billion also fell short of expectations.
In its fiscal fourth-quarter, Adobe delivered revenue of $5.61 billion, up 11% year-over-year, and above the analyst consensus. Net income of $1.68 billion or $3.79 per share compared to $1.48 billion or $3.23 per share a year earlier and topped projections.
Adobe’s Digital Media arm, which includes Creative Cloud subscriptions, saw net-new annualized recurring revenue of $578 million, up 2% year-over-year and above analysts’ projections.
Shares tumbled 8% after the bell following the release. They were down close to 8% for 2024 through Wednesday’s close.
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