Adobe 2Q Sales, Profit Rise as AI Adds New Customers

By Ben Glickman

Adobe posted higher sales in the fiscal second quarter as interest in artificial intelligence drove new customers to the company.

The San Jose, Calif.-based software provider on Thursday reported a profit of $1.57 billion, or $3.49 a share, in the quarter ended May 31, compared with a profit of $1.25 billion, or $2.82 a share, a year earlier. Analysts polled by FactSet expected a per-share profit of $3.40.

Stripping out certain one-time items, the company posted an adjusted profit of $4.48, ahead of the $4.39 expected by analysts surveyed by FactSet.

Revenue rose 10% to $5.31 billion, beating the $5.29 billion expected by analysts polled by FactSet. The company's remaining performance obligations at the end of the quarter were $17.86 billion.

Chief Executive Shantanu Narayen said the company's approach to artificial intelligence and product delivery were attracting new customers and giving more value to existing customers.

Adobe now expects $21.4 billion to $21.5 billion in revenue for the year, compared with its previous guidance for $21.3 billion to $21.5 billion.

The company expects adjusted per-share earnings of $18 to $18.20 a share, up from its previous outlook for $17.60 to $18 a share. Analysts polled by FactSet are expecting $18 a share in adjusted profit.

Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

June 13, 2024 16:47 ET (20:47 GMT)

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