Adobe CEO Shantanu Narayan speaks during an interview with CNBC on the floor of the New York Stock Exchange on February 20, 2024.
Brendan McDiarmid | Reuters
Adobe Amazon reported third-quarter results on Thursday that beat Wall Street expectations for sales and profits, but the stock fell 10% in extended trading on the back of a weaker-than-expected fourth-quarter outlook.
Here's Adobe's performance for the quarter ended August compared to 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 expects earnings per share of $4.63 to $4.68 on revenue of $5.5 billion to $5.55 billion in the fourth quarter. Analysts polled by LSEG had expected earnings per share of $4.67 on sales of $5.61 billion.
Adobe said it had net income of $1.68 billion for the quarter, or $3.76 per diluted share. That was up from $1.40 billion, or $3.05 per share, in the year-ago period.
Adobe's largest business line, digital media, which includes the company's Creative Cloud subscriptions that use generative AI called Firefly, grew 11% year over year to $4 billion in sales.
Overall, Adobe reported $5.18 billion in subscription revenue during the quarter, up 11% year over year.
