Adobe shares soar on AI-boosted revenue and profits

Adobe (NASDAQ:ADBE) saw its shares soar in Thursday’s afterhours dealing, rising 15%, after reporting strong quarterly revenue and income, thanks to AI-driven demand.

“Our highly differentiated approach to AI and innovative product delivery are attracting an expanding universe of customers and providing more value to existing users,” chief executive Shantanu Narayen said in a statement.

Revenue increased to $5.31 billion for the quarter, from $4.82 billion in the same period last year, and higher than the $5.29 billion estimated by Wall Street analysts.

Net income for the quarter, meanwhile, came in at $1.57 billion equating to $3.49 per share.

Earnings (adjusted) per share was reported at $4.48, ahead of consensus analyst forecasts pitched at $4.39.

Adobe's digital media segment, which includes Creative Cloud and Document Cloud, saw an 11% increase in revenue to $3.91 billion, versus analysts' projections of $3.89 billion, whilst the digital experience segment's revenue grew 9%, to $1.33 billion versus an estimate of $1.32 billion.

Looking ahead, Adobe expects full fiscal year revenue to be between $21.40 billion and $21.50 billion, in line with the current market consensus forecast of $21.47 billion, whilst it guides for earnings per share between $18.00 to $18.20.

"Our market-leading products, strong execution and world-class financial discipline position us well for the second half of 2024 and beyond," Adobe chief financial officer Dan Durn added.

In New York, Adobe stock was up $70.27 or 15% changing hands at $529.39.