The stock of Adobe (ADBE) is up 15% after the design software company reported financial results that beat Wall Street forecasts and raised its full-year guidance.
The company behind products such as Photoshop and Illustrator announced first-quarter earnings per share (EPS) of $4.48 U.S. compared to $4.39 U.S. that was expected among analysts.
Revenue in the quarter came in at $5.31 billion U.S. versus $5.29 billion U.S. that had been expected. Sales were up 10% from a year earlier.
On an earnings call, management said they are benefitting from the addition of artificial intelligence (A.I.) across the company’s suite of creative software products, including Firefly.
Notably, Adobe is seeing Creative Cloud subscribers upgrade their plans to access Firefly’s A.I. capabilities, said company executives.
New annualized recurring revenue for Adobe’s digital media segment that includes Creative Cloud subscriptions came in at $487 million U.S. in Q1, above analysts’ consensus expectation for $437.4 million U.S.
Looking ahead, Adobe called for EPS of $4.50 U.S. to $4.55 U.S. for the current quarter, with $5.33 billion U.S. to $5.38 billion U.S. in revenue.
Analysts had $4.48 U.S. in earnings and $5.40 billion U.S. of revenue penciled in for the company.
For all of this year, Adobe expects EPS of $18 U.S. to $18.20 U.S. and revenue of $21.40 billion U.S. to $21.50 billion U.S.
Wall Street was projecting $18.02 U.S. in profits and $21.46 billion U.S. in full-year sales.
Prior to today (June 14), the stock of Adobe had declined 20% this year and was trading at $458.74 U.S. per share.
