KEY POINTS:
- Adobe picks up $5.31B in sales.
- Earnings top estimates at $4.48.
- AI integration excites investors.
Software maker CEO did what every investor loves — he threw the phrase “AI” in his prepared remarks. And investors loved that.
- Adobe stock ADBE powered higher by 15% Friday after the company posted a double beat — earnings and revenue arrived above analysts’ estimates. For the most recent quarter, the creative and marketing software maker picked up revenue of $5.31 billion, a solid 10% gain from the year-ago quarter and above Wall Street’s calls for $5.29 billion. It also shot above the company’s own guidance for $5.3 billion.
- With such a good sales figure, earnings only sweetened the deal. Adjusted profit was $4.48 a share, coming above Adobe’s forecast of $4.35 to $4.40 a share and above analyst expectations for $4.39 a pop. The optimistic growth is underpinned by — you guessed it — a series of AI-related developments. There was even the mention of “AI” in the speech by CEO Shantanu Narayen. And we all know how much investors love that.
- “We’re driving strong usage value, and demand for our AI solutions across all customer segments and seeing early success monetizing new AI technologies across our Digital Media and Digital Experience businesses,” Adobe’s boss said in his remarks during the quarterly conference call. For the August quarter, Adobe expects revenue in the range of $5.33 billion to $5.38 billion. For the full fiscal year, Adobe raised its earnings guidance to $18 to $18.20 a share, up from $17.60 to $18 a piece.