Adobe Stock Falls On Lackluster Outlook After Q1 Beat

Digital media and marketing software firm Adobe (ADBE) late Thursday beat Wall Street’s targets for its fiscal first quarter but gave a lackluster forecast for the current period. Adobe stock fell in extended trading.




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The San Jose, Calif.-based company earned an adjusted $4.48 a share on sales of $5.18 billion in the quarter ended March 1. Analysts polled by FactSet had expected Adobe earnings of $4.38 a share on sales of $5.14 billion. In the year-earlier quarter, Adobe earned an adjusted $3.80 a share on sales of $4.66 billion.

In after-hours trading on the stock market today, Adobe stock tumbled more than 9% to 513.52. During the regular session Thursday, Adobe stock dipped 0.5% to close at 570.45.

Earnings report details to follow.

Adobe stock tumbled last month over concerns that generative artificial-intelligence tools, such as Sora from OpenAI, could hurt sales of its software for creative professionals. But Adobe is integrating its own generative AI, branded Firefly, into its creative software.

Adobe stock has an IBD Composite Rating of 85 out of 99, according to IBD Stock Checkup.

Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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