Adobe Stock Drops As Revenue Forecast Disappoints

Adobe (ADBE) issued a gross outlook that came successful beneath analysts’ expectations, sending shares little successful extended trading Wednesday. 

The Creative Cloud package supplier projected 2025 gross of $23.3 cardinal to $23.55 billion, beneath nan expert statement of $23.77 cardinal from Visible Alpha. Its first-quarter gross forecast of $5.63 cardinal to $5.68 cardinal besides fell short of expectations.

In its fiscal fourth-quarter, Adobe delivered gross of $5.61 billion, up 11% year-over-year, and supra nan expert consensus. Net income of $1.68 cardinal aliases $3.79 per stock compared to $1.48 cardinal aliases $3.23 per stock a twelvemonth earlier and topped projections. 

Adobe’s Digital Media arm, which includes Creative Cloud subscriptions, saw net-new annualized recurring gross of $578 million, up 2% year-over-year and supra analysts' projections.

Shares tumbled 8% aft nan doorbell pursuing nan release. They were down adjacent to 8% for 2024 done Wednesday’s close.