Key things

  • Adobe reported record Q2 revenue as use of artificial intelligence boosted demand.
  • CEO Shantanu Narayen said AI will drive the resale of its products.
  • Adobe’s current quarterly and full-year outlook beat estimates.

Shares of Adobe (ADBE) took off on Friday as enthusiasm for its use artificial intelligence (AI) increased demand for its products.

The maker of Photoshop and other creative software reported record second-quarter revenue of $4.82 billion, up 9.8%, with earnings per share (EPS) of $3.91. Both were better than expected.

CEO Shantanu Narayen said the results reflected strong demand for Adobe’s Creative Cloud, Document Cloud and Experience Cloud units. He added that “the company’s pioneering innovation positions us to lead the new era of generative artificial intelligence due to our rich datasets, underlying models and ubiquitous product interfaces.”

The company forecast current-quarter revenue of $4.83 billion to $4.97 billion and full-year revenue of $19.25 billion to $19.35 billion. That was also more than analysts had estimated.

Narayen said Adobe believes “generative AI will drive further availability and adoption of our products.”

Adobe shares were up 2% midday Friday, trading at a 16-month high.


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