Adobe beats third-quarter revenue estimates on AI product demand

Adobe exceeded Wall Street's expectations for revenue in the third quarter, driven by robust demand for its AI-enhanced products and tools. The tech giant posted $6.76 billion in revenue, surpassing analysts' average estimate of $6.70 billion, according to LSEG data. Adjusted profit per share stood at $6.13, outpacing expectations of $6.09.

Adobe has been leveraging AI across its creative and customer experience offerings to maintain its competitive edge against emerging rivals. The company's AI-first annual recurring revenue rose more than 150% year-over-year in the quarter. Adobe recently underwent leadership shifts, with Anil Chakravarthy appointed as CEO and Shantanu Narayen taking on the role of executive chair starting December 1.

Chakravarthy, an insider at Adobe, has managed customer experience and global field operations. The transition follows the departure of CFO Dan Durn in June, who was replaced by interim CFO Steve Day. Meanwhile, David Wadhwani, president of Adobe's Creativity & Productivity business, is set to resign on September 27.