Adobe shares move lower after full-year projections fall short

Adobe shares move lower after full-year projections fall short


Shantanu Narayen, chairman and chief executive officer of Adobe Systems Inc., during a telecast of the SoftBank World event in Tokyo arranged in Kawasaki, Kanagawa Prefecture, Japan, on Thursday, Oct. 29, 2020. SoftBank World, the company’s annual two-day event for customers and suppliers, ends Friday.

Akio Kon | Bloomberg | Getty Images

Adobe shares fell as much as 5% in extended trading on Thursday after the design software maker gave full-year guidance that fell short of analysts’ expectations.

Here’s how the company did:

  • Earnings: $3.35 per share, adjusted, vs. $3.31 per share as expected by analysts, according to Refinitiv.
  • Revenue: $4.39 billion, vs. $4.34 billion as expected by analysts, according to Refinitiv.

For the full fiscal year, Adobe reduced its guidance. It called for $13.50 in adjusted earnings per share on $17.65 billion in revenue. Analysts polled by Refinitiv had expected $13.66 in adjusted EPS and revenue of $17.85 billion. In December the guidance for the 2022 fiscal year was $13.70 in adjusted earnings per share and $17.90 billion in revenue.

The company pointed to the war in Ukraine, a $175 million foreign-exchange headwind, and summer seasonality. Microsoft and Salesforce also cited currency impact when they issued worse-than-expected projections in recent weeks. The U.S. dollar has gained strength against the euro, the Japanese yen and other currencies this year as the Federal Reserve has pushed up interest rates to stave off inflation.

During the quarter ended June 3, the company’s revenue grew 14% year over year, according to a statement. Adobe’s net income in the fiscal second quarter, at $1.18 billion, was up about 6%.

Adobe’s Digital Media segment, which includes Creative Cloud and Document Cloud products, reported $3.20 billion in revenue, up 15% and more than the StreetAccount consensus estimate of $3.16 billion.

The Digital Experience business, which includes Adobe’s Experience Cloud that companies use for marketing and commerce, contributed $1.10 billion, up 17% and above the $1.08 billion StreetAccount consensus.

During the quarter Adobe announced price hikes for certain Creative Cloud subscriptions, citing the launch of new applications, and said a version of its Experience Cloud for health-care customers was available.

Adobe ended the quarter with $4.88 billion in deferred revenue, down from $5.02 billion three months earlier and below the StreetAccount consensus of $5.00 billion.

Notwithstanding the after-hours move, Adobe shares are down about 36% since the start of the year, while the S&P 500 index is down 23% over the same period.

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

This is breaking news. Please check back here for updates.

WATCH: Adobe CEO says e-commerce categories including electronics are seeing price declines



Source

Linda Yaccarino briefly loses verified X checkmark after stepping down as CEO
Technology

Linda Yaccarino briefly loses verified X checkmark after stepping down as CEO

X Corp’s CEO Linda Yaccarino looks on during the Senate Judiciary Committee hearing on online child sexual exploitation at the U.S. Capitol in Washington, U.S., January 31, 2024.  Nathan Howard | Reuters Ex-X CEO Linda Yaccarino is still @lindayaX on the social media site, but she briefly lost the blue checkmark next to her account […]

Read More
Tesla moves to expand Robotaxi to Phoenix, following rival Waymo
Technology

Tesla moves to expand Robotaxi to Phoenix, following rival Waymo

CNBC spotted a Tesla robotaxi in Austin, Texas, on June 24, 2025 Katie Tarasov Elon Musk’s Tesla has applied to test and eventually deploy its Robotaxi vehicles in Phoenix, Arizona, following in the footsteps of market leader Waymo. Tesla has applied to conduct autonomous vehicle testing and operations, with and without human safety drivers on […]

Read More
Trump to host Jensen Huang at White House as Nvidia tops  trillion market cap
Technology

Trump to host Jensen Huang at White House as Nvidia tops $4 trillion market cap

Nvidia CEO Jensen Huang delivers remarks next to U.S. President Donald Trump at an ‘Investing in America’ event in Washington, D.C., on April 30, 2025. Leah Millis | Reuters Nvidia CEO Jensen Huang will meet with President Donald Trump at the White House on Thursday, CNBC’s Megan Cassella reported. The meeting comes as Nvidia rose […]

Read More