Adobe CEO Shantanu Narayen speaks during an interview with CNBC on the trading floor of the New York Stock Exchange on February 20, 2024.
Brendan McDermid | Reuters
Adobe reported Third quarter results on Thursday, it beat Wall Street’s expectations for revenue and profit. However, the stock fell 10% in prolonged trading since it missed fourth-quarter forecasts.
Here’s how Adobe performed within the quarter to August in comparison with LSEG consensus estimates:
- revenue: $5.41 billion versus expected $5.37 billion
- Earnings per share: $4.65 adjusted vs. $4.53 estimated
Adobe expects earnings per share within the fourth quarter to be between $4.63 and $4.68 on revenue of between $5.5 billion and $5.55 billion. Analysts surveyed by LSEG had expected earnings per share of $4.67 on revenue of $5.61 billion.
Adobe reported net income of $1.68 billion, or $3.76 per diluted share, for the quarter. In the year-ago period, earnings were $1.40 billion, or $3.05 per share.
Adobe’s largest business, Digital Media, which incorporates the corporate’s Creative Cloud subscriptions that use a generative artificial intelligence called Firefly, grew 11% 12 months over 12 months to revenue of $4 billion.
Overall, Adobe reported subscription revenue of $5.18 billion for the quarter, an 11% increase 12 months over 12 months.
