Adobe beats Q3 estimates as AI product demand rises
Adobe said AI-first annual recurring revenue rose more than 150% year on year in the quarter.
Adobe exceeded Wall Street expectations for third-quarter revenue, driven by rising demand for its AI-driven products and services, the company announced on Thursday. Revenue for the period reached $6.76 billion, surpassing the average analyst estimate of $6.70 billion, according to figures from LSEG. Adjusted profit per share rose to $6.13, outperforming analysts' projections of $6.09.
The company has been leveraging AI across its creative and customer-experience offerings as it strives to maintain its competitive edge against emerging competitors. Notably, AI-related annual recurring revenue surged more than 150% year-over-year in the third quarter. Adobe recently underwent leadership changes, appointing Anil Chakravarthy as CEO, replacing Shantanu Narayen, who will assume the role of executive chair starting December 1.
Chakravarthy, an established Adobe executive who oversaw customer experience and global field operations, assumes the position as the company aims to bolster growth in the AI-driven landscape. The CEO shift follows the departure of CFO Dan Durn in June, succeeded by interim CFO Steve Day. Additionally, David Wadhwani, president of Adobe's Creativity & Productivity business, is scheduled to depart on September 27.
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- Adobe beats third-quarter revenue estimates on AI product demand channelnewsasia.com
- Earnings Snapshot: Adobe Q3 EPS beats as AI reach, ARR, 1B+ users fuel growth seekingalpha.com
