On Friday, Adobe reported high EPS growth and record revenue in its third-quarter financial data for its 2023 fiscal year.
Its stock price declined by 0.25% to $552.16 per share on September 15. However, market watchers expect it to rebound by 0.55% to $555.19 apiece in the upcoming session.
The company reported third-quarter EPS of $4.09, 3.02% higher than the $3.97 forecast and 4.60% above the $3.91 of Q2. Similarly, its revenue was $4.89 billion, up 0.41% from the $4.87 billion estimate and up 1.45% from Q2’s $4.82 billion.
Additionally, Adobe posted Q3 net income of $3.05 per share or $1.40 billion in total. Also, it ended the quarter with $1.87 billion cash flows from operations and $15.72 billion RPOs (Remaining Performance Obligations).
Its Digital Media segment revenue was at $3.59 billion after an 11.00% YoY growth. Similarly, the Creative Revenue segment of Adobe grew by 11.00% YoY with earnings of $2.91 billion.
In addition, the Document Cloud segment reported $685.00 million in profits and 13.00% YoY growth. Likewise, its Digital Experience segment proceeds appreciated by 10.00% YoY to $1.23 billion.
Lastly, Adobe anticipates Q4 EPS of $4.10 to $4.15, higher than the $4.06 analyst estimate. Also, it expects Q4 revenue of $4.98 billion to $5.03 billion, in line with the $5.00 billion analysts have forecast.
Firefly AI Commercial Release to Bolster Adobe
Adobe Chairman and Chief Executive Shantanu Narayen announced the upcoming integration of the Firefly AI into more of their products. Firefly will use a credit system to charge users based on the computation costs required and generative AI features used.
Narayen attributed the successful third quarter to the software company’s growing arsenal of value-added services. Furthermore, he said that Firefly will allow customer segmenting, thus ensuring that each one has the right offering.
Moreover, the shares of Adobe have grown by 64.10% year-over-year. In comparison, the Nasdaq Composite Index advanced 33.10% and the S&P 500 is up 17.30% year to date.
