Adobe Shares Drop About 2% After Hours as Q4 Revenue Outlook Misses Expectations
AI Market Summary
Adobe shares slipped after-hours despite a Q3 beat and higher full-year guidance, as Q4 revenue guidance came in slightly below consensus and net new ARR declined sharply year-over-year. Slower remaining performance obligation growth versus subscription revenue also raised questions about near-term demand visibility. Competitive pressure from lower-cost AI tools and a CEO transition added execution risk, keeping focus on forward growth quality rather than the earnings beat.
Impact level
● Medium
Affected assets
NCSKADBE2USD/USDT+1.91%
AI Insight · NCSKADBE2USD/USDTAI Insight
▼ Bearish
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Adobe reported third-quarter revenue of $6.76 billion, up 13% year over year, and non-GAAP EPS of $6.13, up 15%, while AI-first ending ARR topped $650 million and monthly active users surpassed 1 billion. Despite the beat and a higher full-year outlook, the stock fell about 2% in after-hours trading Thursday. Investors appeared to focus on the company’s Q4 revenue guidance of $6.80 billion to $6.85 billion, with the midpoint slightly below Wall Street’s $6.85 billion estimate.
