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Adobe reports strong Q3 earnings but issues cautious revenue guidance
Adobe reported fiscal third-quarter results that exceeded analyst expectations, with revenue rising 13% to $6.76 billion and adjusted earnings per share reaching $6.13. The company also announced that its monthly active users have surpassed 1 billion, supported by a freemium strategy that has grown its creative audience to over 100 million. Notably, Adobe’s “AI-first” annual recurring revenue surged by more than 150% year-over-year.
Despite the strong quarterly performance, Adobe’s stock faced downward pressure following the report. This decline is attributed to a cautious revenue guidance for the fourth quarter, which was projected to be between $6.8 billion and $6.85 billion, falling slightly below some analyst consensus figures. Investors have expressed concerns regarding increased competition from generative AI-native and open-source tools that may disrupt traditional subscription models.
In leadership news, Anil Chakravarthy is set to succeed Shantanu Narayen as CEO on December 1. The company continues to pivot toward integrating AI across its workflows, aiming to leverage tools like Firefly to maintain its dominance in the creative and marketing sectors.
Entities
Adobe · Adobe Inc. · Anil Chakravarthy · Citigroup · Firefly · J. Parker Lane · Mizuho · Nasdaq · Shantanu Narayen · Stifel · Wall Street
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Citigroup increased its price target for Adobe to $301 from $228.
- [○ 1 SOURCE] Mizuho raised its price target for Adobe to $260 from $245. timesng.com
- [○ 1 SOURCE] Adobe reported fiscal third-quarter revenue of $6.76 billion. investinglive.com
- [○ 1 SOURCE] Fourth-quarter adjusted earnings per share guidance is set between $6.30 and $6.35. investinglive.com
- [○ 1 SOURCE] Adobe issued fourth-quarter revenue guidance between $6.80 billion and $6.85 billion. investinglive.com
- [○ 1 SOURCE] Adjusted earnings per share for the third quarter were $6.13. investinglive.com
- [○ 1 SOURCE] Stifel analyst J. Parker Lane raised the company's price target to $225 from $200. timesng.com