<strong>Here’s how Adobe did in its fourth financial quarter</strong>

Adobe Inc (NASDAQ: ADBE) is trading 6.0% up in extended hours after the cloud company reported strong results for its fiscal fourth quarter.

Adobe stock up on encouraging guidance

Investors are also cheering its current quarter guidance that came in better than expected.

Adobe is forecasting revenue to fall between $4.60 billion and $4.64 billion in Q1 on $3.65 to $3.70 of per-share earnings. In comparison, analysts had called for $4.26 billion and $3.64 a share, respectively.

Its full-year outlook was also roughly in line with Street estimates. According to CEO Shantanu Narayen:

Adobe also confirmed that this forecast excludes contribution from Figma – a $20 billion acquisition it expects to complete in fiscal 2023.

Adobe Q4 financial highlights

• Net income printed at $1.18 billion versus the year-ago $1.23 billion
• Per-share earnings also fell slightly from $2.57 to $2.53
• On an adjusted basis, it earned $3.60 as per the press release
• Revenue jumped 10% on a year-over-year basis to $4.53 billion
• Consensus was $3.50 a share of adjusted EPS on $4.53 billion revenue

Wall Street recommends that you buy Adobe stock as it has upside to $365 a share.

What else was noteworthy?

Other notable figures in the earnings report include Digital Media revenue that went up 10% year-on-year. Revenue from Digital Experience climbed 14% as well.

According to Adobe Inc, its net new digital media ARR (annualised recurring revenue) stood at $576 million – ahead of its forecast. CFO Dan Durn said in the press release:

This tech stock is now down more than 35% year-to-date.