Adobe Adds 15% In Pre-market On Upbeat Q2 Results, Outlook

(RTTNews) - Shares of Adobe Inc. (ADBE) were rising more than 15 percent in pre-market on Friday to $529.25, after reporting upbeat second-quarter results above the Street expectations, fueled by AI sales growth. The company also raised its full-year profit outlook better than the consensus estimates.

"Adobe achieved record revenue of $5.31 billion driven by strong growth across Creative Cloud, Document Cloud and Experience Cloud," said Shantanu Narayen, chair and CEO, Adobe.

Net income for the second quarter increased to $1.573 billion or $3.49 per share from $1.295 billion or $2.82 per share in the same quarter a year ago.

Excluding special items, earnings were $2.023 billion or $4.48 per share, that beat the average estimate of $4.09 per share according to Thomson-Reuters.

Revenue for the quarter increased 10 percent year-on-year to $5.309 billion, beating the consensus estimate of $4.93 billion.

Digital Media segment revenue grew 11 percent to $3.91 billion; Creative revenue increased 10 percent to $3.13 billion; and Document Cloud revenue was up 19 percent to $782 million.

For the third quarter, the company expects revenue in the range of $5.33 billion to $5.38 billion, and adjusted EPS of $4.50 - $4.55.

Analysts expect the company to report earnings of $4.17 per share on revenue of $5.03 billion.

For the full year, adobe now expects adjusted EPS in the range $18.00 to $18.20. Revenue is expected between $21.40 billion and $21.50 billion.

The consensus estimate for revenue stands at $19.98 billion and for profit is at $16.78.

Adobe shares had closed at $458.74, down 0.25 percent on Thursday. The stock has traded in the range of $433.97 - $638.25 in the last 1 year.