Adobe (ADBE.O), the company behind Photoshop, forecasted current-quarter earnings above Wall Street expectations on Thursday, following a third-quarter sales beat thanks to robust demand for its generative AI-integrated photo, video, and document editing products.
The corporation has been investing in GenAI capabilities to make its creative tools more appealing to customers. As GenAI is included in Adobe’s products, analysts anticipate that it will accelerate revenue growth in 2024 and over the long run.
Adobe has been progressively integrating new AI features into its software over the past six months, including the capacity to create images from text. The business also expects to increase the price of its products beginning in November.
Based in San Jose, California, Shares of Adobe decreased slightly during extended trading.
According to LSEG data, it reported earnings of $4.09 per share in the quarter ending September 1, exceeding analysts’ expectations of $3.98 per share.
Compared to projections of $4.87 billion, quarterly sales came in at $4.89 billion.
According to LSEG data, Adobe anticipates fourth-quarter revenue between $4.98 billion and $5.03 billion, versus analysts’ expectations of $5 billion.
In contrast to analysts’ average expectation of $4.06 per share, the business projects an adjusted profit for the fourth quarter of between $4.10 and $4.15 per share.
