Adobe Q2 results: ‘positioned to lead new era of generative A.I.’

Shares of Adobe Inc (NASDAQ: ADBE) gained 6.0% in extended hours after the software giant reported market-beating results for its second financial quarter.

Adobe stock up on upbeat outlook

Investors are also cheering the raised guidance. Adobe now forecasts its revenue to fall between $19.25 billion and $19.35 billion this year on up to $15.75 of adjusted per-share earnings.

In comparison, analysts were at $15.50 a share and $19.30 billion in revenue. In the earnings press release, CEO Shantanu Narayen said:

Last week, the multinational said Adobe Firefly – its generative A.I. tool will be available to large business customers in the second half of this year. Adobe stock is now up more than 50% for the year.

Adobe Q2 results highlights

• Earned $1.3 billion versus the year-ago $1.18 billion
• Per-share earnings also climbed from $2.49 to $2.82
• Adjusted EPS printed at $3.91 as per the press release
• Revenue jumped 10% year-on-year to $4.82 billion
• Consensus was $3.79 a share on $4.78 billion revenue

What else was noteworthy?

Other prominent figures in the earnings report include document cloud revenue that went up 11%. Creative and digital media revenues grew 9.0% and 10%, respectively.

Adobe ended the quarter with $15.22 billion worth of remaining performance obligations. CEO Narayen added:

Wall Street currently has a consensus “overweight” rating on Adobe stock.