Key Points
- Adobe posted record second-quarter revenue as its use of AI boosted demand.
- CEO Shantanu Narayen says AI will boost sales of its products.
- Adobe Outlook current quarter and year exceeds estimates.
Adobe (ADBE) shares soared on Friday as excitement sparked through its use of artificial intelligence (AI) has driven demand for its products.
The Maker of Photoshop and others creative software reported record second-quarter revenue of $4.82 billion, up 9.8%, with earnings per share (EPS) of $3.91. Both were better than expected.
CEO Shantanu Narayen said the results reflected strong demand across Adobe's Creative Cloud, Document Cloud and Experience Cloud units. He added that “the company's groundbreaking innovation positions us to lead the new era of generative AI given our rich datasets, core models, and user interfaces. ubiquitous products.
The company predicted current quarter sales to be $4.83 billion to $4.97 billion, and full-year sales of $19.25 billion to $19.35 billion. It was also more than analysts' estimates.
Narayen indicated that ;Adobe believes “generative AI will drive both accessibility and adoption of our products.
Adobe shares were up around 2% and trading at a 16-month high at midday Friday.
YCharts
Do you have any timely advice for Investopedia reporters? Please email us at tips@investopedia.com
Source: investopedia.com