Adobe announced better-than-expected fiscal second-quarter results on Thursday, prompting the company to raise its annual financial guidance. The strong performance was driven by growing demand for its digital media products, fueled in part by artificial intelligence trends.
Adobe reported adjusted earnings per share (EPS) of $5.06 on revenue of $5.87 billion. Analysts had forecasted EPS of $4.97 and revenue of $5.8 billion.
The company’s digital media segment generated $4.35 billion in revenue, marking an 11% increase compared to the same quarter last year. Annualized recurring revenue (ARR) for digital media rose 12.1% to $18.09 billion.
Looking ahead to the fiscal third quarter, Adobe expects adjusted EPS between $5.15 and $5.20, with revenue ranging from $5.875 billion to $5.925 billion. These estimates are slightly higher than Wall Street’s projections of $5.11 EPS and $5.88 billion revenue.
“As a result of strong first-half performance, we are raising Adobe’s full-year revenue and EPS targets,” said Shantanu Narayen, Adobe’s chairman and CEO.
For fiscal year 2025, Adobe now forecasts adjusted EPS between $20.50 and $20.70, up from the previous range of $20.20 to $20.50.
Revenue guidance was also increased to $23.50 billion to $23.60 billion, compared to the earlier estimate of $23.30 billion to $23.55 billion. The digital media segment is expected to bring in between $17.45 billion and $17.50 billion, up from prior guidance of $17.25 billion to $17.40 billion.
Despite the strong results, Adobe’s shares fell slightly by more than 1% in after-hours trading following the report.
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