Adobe Inc (NASDAQ:ADBE) shares rose by 17% in after-hours trading following better-than-expected earnings and revenue and increased its full-year guidance driven by its investment in artificial intelligence.
David Wadhwani, president of Adobe’s Digital Media business, said he had been pleased with the adoption of AI functionality within products such as the best-selling Creative Cloud along with early monetisation of innovations.
For the fiscal second quarter ending May 31, Adobe posted adjusted earnings per share of $4.48, above the expected $4.39, and revenue of $5.31 billion, surpassing the anticipated $5.29 billion. This represented a 10% year-over-year revenue increase.
For the fiscal third quarter, Adobe anticipates adjusted earnings per share between $4.50 and $4.55 and revenue between $5.33 billion and $5.38 billion.
Analysts had forecast $4.48 in earnings per share and $5.4 billion in revenue. The company also revised its full-year forecast, projecting adjusted earnings per share between $18.00 and $18.20 and revenue between $21.40 billion and $21.50 billion, up from the previous forecast of $17.60 to $18.00 in earnings per share and $21.30 billion to $21.50 billion in revenue.