Adobe Inc. (NASDAQ:ADBE) shares gained 4% in intraday trading Friday after the software company delivered third-quarter results ahead of Wall Street expectations and lifted its full-year outlook, supported by accelerating adoption of artificial intelligence features across its platform.
Adobe reported adjusted earnings of $5.31 per share, surpassing the consensus estimate of $5.18. Revenue climbed 11% year-over-year to a record $5.99 billion, topping forecasts of $5.91 billion. The company’s AI-influenced annual recurring revenue (ARR) surpassed $5 billion, while AI-first ARR exceeded its year-end target of $250 million.
Revenue from the Digital Media segment grew 12% to $4.46 billion, while the Digital Experience segment increased 9% to $1.48 billion. Remaining Performance Obligations (RPO) rose 13% year-over-year, exceeding $20 billion for the first time.
For the fourth quarter, Adobe projected revenue between $6.075 billion and $6.125 billion and adjusted EPS of $5.35 to $5.40, above expectations of $5.34. The company also raised its full-year revenue outlook to between $23.65 billion and $23.70 billion.
