Adobe Inc shares moved higher after the closing bell on Thursday as the software and multimedia company posted second quarter earnings that topped expectations on both profit and revenue.
For the quarter ended June 2, 2023, the company achieved adjusted earnings per share of $3.91, above the consensus analyst expectation of $3.79 and Adobe’s forecast range of $3.75 to $3.80 per share.
Revenue of $4.82 billion, a record for 2Q, exceeded analysts’ expectations of $4.78 billion and Adobe’s expectation of $4.75 billion to $4.78 billion.
It also represented a 10% jump year-over-year, or a 13% increase in constant currency.
“Adobe achieved record 2Q revenue demonstrating strong demand across Creative Cloud, Document Cloud and Experience Cloud," Adobe CEO Shantanu Narayen said.
"Adobe’s ground-breaking innovation positions us to lead the new era of generative AI given our rich datasets, foundation models and ubiquitous product interfaces."
For the upcoming third quarter, Adobe expects revenue between $4.83 billion to $4.87 billion and adjusted earnings per share between $3.95 and $4.
The company also updated its fiscal year 2023 targets. “Adobe delivered outstanding net new ARR and profitability in Q2, positioning us to raise our annual targets," said Adobe CFO Dan Durn.
It expects revenue between $19.25 billion and $19.35 billion and adjusted earnings per share between $15.65 and $15.75.
Adobe shares added 3.6% at $508.71 shortly after the release of its results.
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