Thursday, November 30, 2023, Adobe headquarters in San Jose, California, USA.
David Paul Morris | David Paul Morris Bloomberg | Getty Images
adobe report Third quarter results The company’s sales and profits beat Wall Street expectations on Thursday, but the stock fell 10% in after-hours trading as it missed fourth-quarter guidance.
Here’s how Adobe’s performance in the quarter ended in August compared to LSEG consensus estimates:
- income: US$5.41 billion, expected US$5.37 billion
- Earnings per share: Adjusted to $4.65, expected to be $4.53
Adobe said it expects fourth-quarter earnings per share of $4.63 to $4.68 and revenue of $5.5 billion to $5.55 billion. Analysts polled by London Stock Exchange Group (LSEG) expected the company to post a profit of $4.67 on sales of $5.61 billion.
Adobe said net income for the quarter was $1.68 billion, or $3.76 per diluted share. That’s up from $1.4 billion, or $3.05 per share, a year earlier.
Adobe’s largest business unit, digital media, which includes the company’s creative cloud subscriptions using generative artificial intelligence called Firefly, grew at an annual rate of 11%, with sales reaching $4 billion.
Adobe’s subscription revenue this quarter totaled $5.18 billion, an increase of 11% from the same period last year.
