Sales will be about US$19.3 billion in the fiscal year ending in November, compared with an earlier forecast of about US$19.2 billion, the company said.
Adjusted profit will be as much as US$15.75 a share, from a previous outlook of US$15.60. Analysts, on average, estimated profit of US$15.50 a share on sales of US$19.3 billion.
Adobe, the longtime top seller of software for creative professionals, is adding generative AI features throughout its products. The company last week unveiled enterprise-level subscriptions for the new tools, which include legal assurance against copyright claims.
As part of the forecast, Adobe raised the revenue projection for its Digital Media unit, which includes Photoshop and other creative software.
“Adobe’s groundbreaking innovation positions us to lead the new era of generative AI given our rich datasets, foundation models, and ubiquitous product interfaces,” CEO Shantanu Narayen said in a statement.
The shares gained about 4% in extended trading after closing at US$490.91 in New York, the highest price since February 2022.
The company has rallied about 42% over the last month as it revealed more of its artificial intelligence strategy, overcoming earlier skepticism from investors and analysts who feared Adobe’s business would be undercut by startups specialising in the new technology.
The company, fighting to keep its top spot in creative software, has proposed a US$20 billion acquisition of design startup Figma. That effort has been complicated by an in-depth review and potential lawsuit from US regulators.
Adobe executives said they continue to talk with regulators in the US, UK, and European Union and expect to complete the purchase by the year of the year, according to a transcript of remarks prepared for a conference call.
The uncertainty over the Figma deal presents some overhang on company shares, Alex Zukin, an analyst at Wolfe Research, wrote in a note ahead of earnings, If the deal closes, it could “generate meaningful cross-sell/upsell opportunities”, according to BMO Harris analyst Keith Bachman.
Fiscal second-quarter sales increased 10% to US$4.82 billion, the San Jose, California-based company said Thursday in a statement. Analysts, on average, projected US$4.77 billion, according to data compiled by Bloomberg. Profit, excluding some items, was US$3.91 a share, compared with the average estimate of US$3.79.
“Adobe moved swiftly from investors’ ‘AI loser’ list, before being viewed as an ‘AI winner,’ Keith Weiss, an analyst at Morgan Stanley, said in a note before the results were released.
Revenue generated by Digital Media increased 10% to US$3.51 billion, topping estimates. Sales in Digital Experience, the marketing and analytics software division, rose 12% to US$1.22 billion, in line with projections.