Earnings

Adobe shares soar 15% on better-than-expected results

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Shantanu Narayen, CEO of Adobe being interviewed by Jim Cramer
Linda Dimyan | CNBC

Adobe shares jumped 15% in extended trading on Thursday after the design software maker reported earnings and revenue that topped estimates.

Here’s how the company did in comparison with LSEG consensus:

  • Earnings per share: $4.48 adjusted, vs. $4.39 expected
  • Revenue: $5.31 billion vs. $5.29 billion expected

Adobe’s revenue grew 10% year over year in the quarter, which ended on May 31, according to a statement.

The company called for adjusted earnings per share of $4.50 to $4.55 for the fiscal third quarter, with $5.33 billion to $5.38 billion in revenue. Analysts polled by LSEG were looking for $4.48 in adjusted earnings per share and $5.4 billion in revenue.

Adobe bumped up its full-year view, calling for full-year adjusted earnings per share between $18.00 and $18.20 and revenue of $21.40 billion to $21.50 billion. Analysts surveyed by LSEG had projected $18.02 per share in adjusted earnings and $21.46 billion in revenue. The forecast in March was $17.60 to $18.00 in adjusted earnings per share, with $21.30 billion to $21.50 billion in revenue.

In recent weeks software peers SentinelOne, UiPath, Veeva have reduced their full-year revenue guidance citing economic weakness and corporate interest in artificial intelligence development.

Before Adobe issued the statement, shares were down 23% so far this year, while the S&P 500 index was up around 14%.

Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.

This is breaking news. Please check back for updates.

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