FX.co ★ Adobe Adds 15% In Pre-market On Upbeat Q2 Results, Outlook

Shares of Adobe Inc. (ADBE) experienced a significant pre-market surge on Friday, climbing over 15% to $529.25. This spike followed the announcement of impressive second-quarter results that exceeded analyst expectations, bolstered largely by growth in AI sales. The company also raised its full-year profit outlook, surpassing consensus estimates.

"Adobe achieved record revenue of $5.31 billion, driven by robust growth across Creative Cloud, Document Cloud, and Experience Cloud," stated Shantanu Narayen, Adobe’s Chair and CEO.

The company reported a net income of $1.573 billion, or $3.49 per share for the second quarter, up from $1.295 billion or $2.82 per share in the same period last year.

Excluding special items, earnings were $2.023 billion, or $4.48 per share, surpassing the average estimate of $4.09 per share as compiled by Thomson Reuters.

Quarterly revenue rose 10% year-over-year, reaching $5.309 billion, well above the consensus estimate of $4.93 billion.

Within its Digital Media segment, Adobe saw revenue grow by 11% to $3.91 billion, with Creative revenue increasing 10% to $3.13 billion and Document Cloud revenue rising by 19% to $782 million.

Looking ahead, Adobe forecasts third-quarter revenue to fall between $5.33 billion and $5.38 billion, with adjusted earnings per share (EPS) expected to be in the range of $4.50 to $4.55.

Analysts predict the company will report third-quarter earnings of $4.17 per share on revenue of $5.03 billion.

For the full fiscal year, Adobe now anticipates adjusted EPS between $18.00 and $18.20, with revenue projected to range from $21.40 billion to $21.50 billion.

Current consensus estimates place annual revenue at $19.98 billion and profit at $16.78 per share.

Adobe shares closed at $458.74 on Thursday, reflecting a slight decline of 0.25%. Over the past year, the stock has fluctuated between $433.97 and $638.25.