Adobe 3Q Profit, Sales Rise as AI Demand Remains Strong

By Connor Hart

Adobe posted higher profit and revenue in its fiscal third quarter boosted by demand for its artificial-intelligence enabled products.

The San Jose, Calif., software maker on Thursday reported a profit of $1.68 billion, or $3.76 a share, for its three months ended Aug. 30, compared with $1.4 billion, or $3.07 a share, a year earlier.

Adjusted per-share earnings were $4.65, ahead of the $4.53 that analysts polled by FactSet forecast.

Revenue rose 11% to $5.41 billion, which topped the $5.37 billion expected by analysts, according to FactSet.

This increase was in part due to the company's digital media segment, up 11% from last year, for revenue of $4 billion. Creative revenue rose 10% to $3.19 billion, while document cloud revenue increased 18% to $807 million.

The company's remaining performance obligations at the end of the quarter were $18.14 billion.

For its fiscal fourth quarter, Adobe guided for revenue of $5.5 billion to $5.55 billion, as well as adjusted per-share earnings of $4.63 to $4.68. Analysts surveyed by FactSet expect revenue of $5.6 billion and adjusted earnings of $4.67 a share.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

September 12, 2024 16:39 ET (20:39 GMT)

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