Adobe beats third-quarter revenue estimates on AI product demand
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Sept 10 : Adobe beat Wall Street estimates for third-quarter revenue on Thursday, as demand for its AI-integrated products and tools continued to grow.
The company reported revenue of $6.76 billion for the quarter, compared with analysts' average estimate of $6.70 billion, according to data compiled by LSEG.
Adjusted profit per share for the quarter came in at $6.13, above analysts' estimates of $6.09.
Adobe has been pushing AI across its creative and customer-experience products as it seeks to defend its position against newer rivals. AI-first annual recurring revenue grew more than 150 per cent year over year in the third quarter.
Adobe has also undergone a series of leadership changes. The Photoshop maker named Anil Chakravarthy as its next CEO last week, with longtime chief executive Shantanu Narayen set to become executive chair on December 1.
Chakravarthy, an Adobe insider who has led its customer experience and worldwide field operations, will take charge as the company seeks to accelerate growth in the AI era. The CEO transition follows the departure of CFO Dan Durn in June. Durn was replaced on an interim basis by Steve Day, a longtime Adobe finance executive, while David Wadhwani, president of Adobe's Creativity & Productivity business, is due to step down on September 27.
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