The company raised its fiscal-year profit forecast to as much as $18.20 a share, excluding some items, compared to a previous outlook of $18 a share. In the fiscal second quarter, sales increased 10% to $5.31 billion. Adobe's digital media unit, which includes its flagship creative and document-processing software, posted an 11% increase in sales to $3.91 billion. The company is in the early stages of monetizing its AI products, focusing on converting interest in AI into revenue.
Key takeaways:
- Adobe Inc. shares posted their biggest gain in more than four years after the company projected strong future sales for its creative products, suggesting customers are adopting the company’s new artificial intelligence-based tools.
- The company expects an acceleration in new creative business through the rest of the fiscal year, and has raised its fiscal-year profit forecast to as much as $18.20 a share.
- Adobe's proprietary AI model, Firefly, has been integrated into products such as Photoshop and Illustrator, and has been used to generate over 9 billion images.
- Despite facing competition from rivals like Canva Inc., Adobe's product for casual creators, Express, more than doubled its monthly active users in the three months ended May 31 compared with the previous quarter.