By Jon Swartz
Software giant also announces $25 billion share-buyback program
Adobe Inc.’s stock dipped more than 8% in extended trading Thursday after the company posted robust quarterly results that highlighted its AI push ahead of its annual developers conference. The company also announced a $25 billion share-buyback program.
“We’ve done an incredible job harnessing the power of generative AI to deliver groundbreaking innovation across our product portfolio,” Adobe Chief Executive Shantanu Narayen said in a statement announcing the results. Adobe Summit, the company’s annual confab that has sharpened its focus on generative AI, is scheduled for late March in Las Vegas.
Adobe (ADBE) reported fiscal first-quarter net income of $620 million, or $1.36 a share, compared with net income of $1.25 billion, or $2.71 a share, in the same quarter a year ago. Adjusted earnings were $4.48 a share.
Revenue climbed 11% to $5.18 billion from $4.66 billion in the year-ago quarter. This included $432 million in net new digital-media annual recurring revenue, below what analysts were hoping for.
Analysts surveyed by FactSet had expected on average adjusted net income of $4.38 a share on revenue of $5.14 billion.
Adobe provided second-quarter sales guidance of $5.25 billion to $5.3 billion, while FactSet analysts are forecasting $5.3 billion.
Shares of Adobe have catapulted 61.5% over the past year, while the broader S&P 500 index SPX has spiked 30%.