Adobe Inc. (NASDAQ: ADBE | ADBE Price Prediction) released its fiscal third-quarter earnings report after the markets closed on Tuesday. The firm posted $2.05 in earnings per share (EPS) and $2.83 billion in revenue, compared with consensus estimates that called for $1.97 in EPS and $2.82 billion in revenue. The same period of last year reportedly had $1.73 in EPS and $2.29 billion in revenue.
Digital Media segment revenue increased 22% year over year to $1.96 billion. Creative revenue grew to $1.65 billion, and Document Cloud achieved revenue of $307 million. Digital Media annualized recurring revenue (ARR) grew to $7.86 billion by the end of the quarter, a quarter-over-quarter increase of $386 million. Creative ARR grew to $6.87 billion, and Document Cloud ARR grew to $993 million.
Separately, Digital Experience segment revenue increased by 34% to $821 million.
Looking ahead to the fiscal fourth quarter, the company expects to see EPS of roughly $2.25 and revenue near $2.97 billion. Consensus estimates call for $2.30 in EPS and $3.03 billion in revenue for the quarter.
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Shantanu Narayen, president and CEO of Adobe, commented:
Customers across every industry continue to rely on Adobe to run their businesses, transform how they work, and bring their creative ideas to life as reflected in our record Q3 results. We’re excited for the opportunities in front of us and confident in our ability to drive strong top-line and bottom-line growth.
Shares of Adobe closed at $284.69, in a 52-week range of $204.95 to $313.11. The consensus price target is $312.92. Following the announcement, the stock was down over 3% at $274.98 in the after-hours session.
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