Adobe's Results and Profit Guidance Beat Estimates on Demand for AI Products

By
Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published September 15, 2023
Adobe Inc

AaronP/Bauer-Griffin / Contributor / Getty Images

Key Takeaways

  • Adobe posted record Q3 revenue as the tech firm benefited from booming demand for AI products.
  • Adobe's Q3 and current quarter earnings per share were above analysts' forecasts.
  • CEO Shantanu Narayen said the company is "unleashing" AI-enhanced creativity.

Adobe (ADBE) posted better-than-expected results and profit guidance as the company joined the growing list of tech firms that are benefiting from soaring demand for artificial intelligence (AI) products.

The maker of Acrobat, Photoshop, and other software reported record third-quarter revenue of $4.89 billion, a gain of 10.4% year-over-year. Earnings per share (EPS) came in at $4.09. Both exceeded forecasts.

CEO Shantanu Narayen said Adobe is “unleashing a new era of AI-enhanced creativity around the world with innovations across our product portfolio.”

Adobe anticipates current quarter EPS of $4.10 to $4.15, higher than estimates. Its revenue outlook came in at $4.975 billion to $5.025 billion, compared to estimates of $5.0 billion.

However, some analysts reportedly raised concerns about Adobe's high share price, with D.A. Davison analyst Gil Luria arguing the firm's short-term upside was largely already reflected in its share price. He maintained a “hold” rating on the stock.

Shares of Adobe were 4% lower as of 12:30 p.m. ET, and lost ground this week after hitting a 21-month high on Monday. They were up over 57% year-to-date.

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  1. Adobe. "Adobe Reports Record Revenue in Q3 Fiscal 2023."

  2. Barron’s. “Adobe Had ‘Blowout’ Quarter With AI. Why the Stock Is Falling.”

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