Adobe Posts Strong Q3 Results

Adobe Posts Strong Q3 Results

Adobe, the software maker based in San Jose, California, has reported higher earnings and revenue in the latest quarter. Here are the key details:

Adjusted Earnings: In Q3, Adobe posted adjusted earnings of $4.09 per share, an increase from $3.40 per share in the same period last year. Analysts surveyed by FactSet had projected earnings of $3.98 per share.

Revenue: The company’s revenue for the quarter reached $4.89 billion, up from $4.43 billion in the previous year. Analysts had anticipated revenue of $4.87 billion.

Net Income: Adobe’s net income for the quarter was $1.4 billion, compared to $1.14 billion in the prior-year period. Analysts had expected net income of $1.32 billion.

Guidance and Other Highlights

• Guidance: Adobe has provided guidance for the fourth quarter, taking into account current macroeconomic conditions and typical year-end seasonal strength. The company has forecasted revenue between $4.98 billion and $5.03 billion, with adjusted earnings in the range of $4.10 to $4.15, along with other guidance.

• Remaining Performance Obligations (RPO): Exiting the quarter, Adobe reported remaining performance obligations of $15.72 billion.

• Segments: Adobe’s digital media segment saw a growth of 11% to reach $3.59 billion in revenue compared to the previous year. Similarly, creative revenue also increased by 11% to $2.91 billion during the same period. Other segments, including document cloud revenue and digital experience segment revenue, exhibited double-digit percentage growth.

Overall, Adobe’s strong performance in Q3 demonstrates its resilience and continued growth in the software industry.