Adobe shares soar 17% on better-than-expected results

Adobe shares jumped 17% in extended trading on Thursday after the design software maker reported earnings and revenue that topped estimates and lifted full-year guidance.

Here's how the company did in comparison with LSEG consensus:

Adobe's revenue grew 10% year over year in the quarter, which ended on May 31, according to a statement.

The company called for adjusted earnings per share of $4.50 to $4.55 for the fiscal third quarter, with $5.33 billion to $5.38 billion in revenue. Analysts polled by LSEG were looking for $4.48 in adjusted earnings per share and $5.4 billion in revenue.

Net-new annualized recurring revenue for the Digital Media business that includes Creative Cloud subscriptions came in at $487 million, above the StreetAccount consensus of $437.4 million.

Adobe bumped up its view for the 2024 fiscal year, calling for full-year adjusted earnings per share between $18.00 and $18.20 and revenue of $21.40 billion to $21.50 billion. Analysts surveyed by LSEG had projected $18.02 per share in adjusted earnings and $21.46 billion in revenue. The forecast in March was $17.60 to $18.00 in adjusted earnings per share, with $21.30 billion to $21.50 billion in revenue.

In recent weeks software peers SentinelOne, UiPath, Veeva reduced their full-year revenue guidance citing economic weakness and corporate interest in artificial intelligence development. CEO Shantanu Narayen told analysts on a conference call that there were no changes to the economy that were worth calling out.

During the quarter, Adobe announced the availability of a service for fine-tuning the company's Firefly generative artificial intelligence models to deliver image content consistent with clients' brand guidelines.

"We're excited about the accelerating