Adobe 1Q Revenue Tops Estimates as Generative AI Demand Continues

By Denny Jacob

Adobe logged better-than-expected revenue in its latest quarter, reflecting sustained demand for products and services boosted by generative artificial intelligence.

The software maker posted net income of $620 million, or $1.36 a share, for the first quarter ended March 1, down from $1.25 billion, or $2.71 a share, a year earlier. Adjusted earnings were $4.48 a share, above analysts’ estimates of $4.38 a share.

Revenue climbed to $5.18 billion from $4.66 billion. Analysts polled by FactSet expected $5.14 billion.

Remaining performance obligations exiting the quarter were $17.58 billion.

Chief Financial Officer Dan Durn said the quarterly results and record remaining performance obligation reflects strong customer adoption of Adobe’s products and services.

For the current quarter, Adobe guided for revenue between $5.25 billion and $5.3 billion as well as adjusted earnings per-share in the range of $4.35 and $4.40. Analysts polled by FactSet expected $5.3 billion in revenue and adjusted earnings per-share of $4.38.

Write to Denny Jacob at denny.jacob@wsj.com

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