As more businesses and consumers turn to its AI-powered editing tools, Photoshop creator Adobe has upped its revenue projection for fiscal 2024.
As more businesses and consumers turn to its AI-powered editing tools, Photoshop creator Adobe (ADBE.O), upped its revenue projection for fiscal 2024 on Thursday amid signs of a strengthening economy.
With signs of an improving economy, Photoshop maker Adobe (ADBE.O) increased its revenue prediction for fiscal 2024 on Thursday as more companies and consumers turn to its AI-powered editing tools. In extended trading, the San Jose, California-based company’s shares increased by more than 16%. The company revised its sales projection from between $21.30 billion and $21.50 billion to between $21.40 billion and $21.50 billion. Based on LSEG data, analysts projected $21.46 billion on average.
As customers increase their spending on Adobe software products like Premiere Pro, Animate, and After Effects—which are utilized by creative professionals across a range of fields—the company’s outlook indicates that its AI efforts are paying off. In April, the firm announced its intention to include an artificial intelligence tool for creating photographs within its well-known Photoshop product, despite fierce competition from companies like OpenAI, Stability AI, and Midjourney.
Additionally, Adobe increased its earlier projection of $17.60 and $18 per share for full-year adjusted earnings per share to a range of $18 and $18.20 per share. It seems that Adobe’s business is doing well despite its competitors being dragged down by artificial intelligence. That, in our opinion, leaves Adobe as the best-positioned large-cap software company, according to D.A. Davidson research analyst Gil Luria. In the second quarter, the company recorded revenue of $5.31 billion, exceeding analysts’ projections of $5.29 billion. Above projections of $3.89 billion, the business reported $3.91 billion in sales from digital media. Adobe created Firefly, a tool for creating AI images that it trains on data that it owns. In contrast to projections of $4.39 per share, the company earned $4.48 per share on an adjusted basis for the quarter.
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