Adobe beat Wall Street estimates for third-quarter revenue but forecast fourth-quarter revenue with a midpoint slightly below expectations, sending its shares down 1.9% in extended trading.. The company reported quarterly revenue of $6.76 billion, above analysts’ average estimate of $6.70 billion, according to LSEG data..
Adjusted profit was $6.13 per share for the quarter, topping analysts’ estimate of $6.09.. Adobe said demand for its AI-integrated products and tools helped lift revenue. Annual recurring revenue from AI-first products more than doubled from a year earlier in the quarter..
For the fourth quarter, Adobe forecast revenue of $6.80 billion to $6.85 billion. The midpoint of $6.825 billion was slightly below analysts’ estimate of $6.85 billion.. “Adobe’s beat on revenue expectations could ease some investor concerns that the company has lost its footing,” Emarketer analyst Grace Harmon said..
Harmon said the softer fourth-quarter guidance raised questions about Adobe’s competitive position and the strategy its new CEO will pursue as AI reshapes the creative software market.. Adobe has been adding AI features across its creative and customer-experience products as it faces growing competition from AI-powered design tools from rivals including Figma and Canva..
Adobe last week named Anil Chakravarthy as its next CEO. Longtime Chief Executive Shantanu Narayen will become executive chair on December 1.. CFO Dan Durn left in June to join Marvell Technology as finance chief and was replaced on an interim basis by Steve Day, senior vice president of corporate finance..
David Wadhwani, president of Adobe’s Creativity and Productivity business, is due to step down on September 27.. Featured image credit. Tags: Adobe
