Adobe stock slips on soft fourth-quarter revenue guidance

Adobe stock slips on soft fourth-quarter revenue guidance


Adobe CEO Shantanu Narayen speaks during an interview with CNBC on the floor of the New York Stock Exchange on Feb. 20, 2024.

Brendan Mcdermid | Reuters

Adobe reported third-quarter results on Thursday that beat Wall Street expectations for sales and earnings, but the stock slid 10% in extended trading on fourth-quarter guidance that came up short.

Here is how Adobe did for the quarter ending in August versus LSEG consensus estimates:

  • Revenue: $5.41 billion vs. $5.37 billion expected
  • Earnings per share: $4.65 adjusted vs. $4.53 estimated

Adobe said it expected earnings per share between $4.63 and $4.68 on revenue of between $5.5 billion and $5.55 billion in the fourth quarter. Analysts polled by LSEG were expecting a forecast of $4.67 in earnings per share on $5.61 billion of sales.

Adobe said it recorded $1.68 billion of net income during the quarter, or $3.76 per diluted share. That is up from $1.40 billion, or $3.05 per share, in the year-ago period.

Adobe’s biggest line of business, Digital Media, which includes the company’s Creative Cloud subscriptions that use generative artificial intelligence called Firefly, grew 11% on an annual basis to sales of $4 billion.

In total, Adobe recorded $5.18 billion in subscription revenue during the quarter, up 11% year over year.

Don’t miss these insights from CNBC PRO

Adobe CEO Shantanu Narayen: 'We had a very strong Q3 across all aspects of the business'



Source

CNBC Daily Open: Capex is the number to look at amid Big Tech earnings
Technology

CNBC Daily Open: Capex is the number to look at amid Big Tech earnings

Signage at Google headquarters in Mountain View, California, US, on Thursday, Oct. 23, 2025. Benjamin Fanjoy | Bloomberg | Getty Images The news is coming in fast and thick. Strap in. First, interest rates. The U.S. Federal Reserve lowered rates by 25 basis points, as expected by traders. But Chair Jerome Powell cautioned that another […]

Read More
Wall Street hates Meta’s AI spending guidance raise. We don’t
Technology

Wall Street hates Meta’s AI spending guidance raise. We don’t

Meta Platforms shares were taking a beating in extended hours trading on Wednesday after management raised its expense guidance and took a massive tax charge. Revenue in the three months ended Sept. 30 climbed 26% year over year to $51.24 billion, easily outpacing the consensus estimate of $48.14 billion, according to LSEG. Adjusted earnings per share […]

Read More
Fund managers reveal their bubble recipes and what to watch for as AI stocks soar
Technology

Fund managers reveal their bubble recipes and what to watch for as AI stocks soar

AI is tipped to transform the economy and eventually evolve into a $4.8 trillion market, but the question on everyone’s lips right now is: is the market in a bubble? Everyone from tech CEOs to asset managers and central bankers is worried the promise of AI could quickly turn sour if it doesn’t live up […]

Read More