Adobe expects adjusted earnings per share to range from $4.10 to $4.15, beating the consensus estimate of $4.06. The company anticipates fourth-quarter revenue to be $5 billion, in line with the estimate of $5 billion.
In the third quarter, Adobe reported adjusted EPS of $4.09, up from $3.40 year-on-year, and surpassing the estimate of $3.98. Revenue for the third quarter reached $4.89 billion, a 10% year-on-year increase, exceeding the estimate of $4.87 billion.
“Adobe delivered world-class margins and earnings in Q3, while making significant investments in our technology platforms,” said Dan Durn, executive vice president and CFO, Adobe. “Our innovation engine, global reach and strong operational rigor position us to capture the massive opportunities ahead.”
Subscription revenue in the third quarter amounted to $4.63 billion, up 12% year-on-year, surpassing the estimate of $4.57 billion. Services and other revenue in the third quarter was $163 million, down 8.9% year-on-year, falling short of the estimate of $169.9 million.
Earlier this week, Adobe released the new GenAI-focused products, including the commercial release of its Firefly family of apps.
“We are unleashing a new era of AI-enhanced creativity around the world with innovations across our product portfolio,” said Shantanu Narayen, chair and CEO, Adobe. “The recent launches of Firefly, Express, Creative Cloud and GenStudio make Adobe magic available to millions of users.”
Adobe shares are up 63.9% year-to-date.