Adobe’s (ADBE) stock is down 10% after the software maker issued forward guidance that disappointed analysts and investors.
The San Jose, California-based company known for creative software products such as Illustrator and Photoshop did manage to issue financial results for this year’s second quarter that beat Wall Street forecasts.
Adobe reported earnings per share (EPS) of $4.65 U.S., which topped the $4.53 U.S. that was expected among analysts who track the company’s progress.
Revenue in the quarter totaled $5.41 billion U.S., which exceeded estimates of $5.37 billion U.S.
Adobe’s Digital Media unit, which includes the company’s generative artificial intelligence (A.I.) products, grew 11% on an annual basis, recording sales of $4 billion U.S.
Adobe also reported $5.18 billion U.S. in subscription revenue during the quarter, up 11% from a year ago.
Unfortunately, Adobe’s guidance underwhelmed investors and overshadowed what was otherwise a strong print from the company.
Management said they expect earnings of $4.63 U.S. to $4.68 U.S. on revenue of $5.50 billion U.S. to $5.55 billion U.S. in the current quarter.
That outlook missed the mark as analysts were expecting $4.67 U.S. in earnings on $5.61 billion U.S. of sales from the company.
Prior to today (Sept. 13), Adobe’s stock had risen 1% this year to trade at $586.55 U.S. per share.
