Adobe Stock Drops as Revenue Forecast Disappoints | Global News Avenue

Adobe (Adebe) issued a revenue outlook that fell short of analysts’ expectations, sending shares lower in extended trading on Wednesday.

The Creative Cloud software provider expects 2025 revenue of $23.3 billion to $23.55 billion, below the $23.77 billion expected by analysts at Visible Alpha. Its first-quarter revenue forecast was US$5.63 billion to US$5.68 billion, which also fell short of expectations.

Adobe achieved revenue of US$5.61 billion in the fourth fiscal quarter, a year-on-year increase of 11%, higher than analysts’ expectations. Net income was $1.68 billion, or $3.79 per share, compared with $1.48 billion, or $3.23 per share, a year earlier, beating expectations.

Annual recurring net revenue from Adobe’s digital media unit, which includes Creative Cloud subscriptions, was $578 million, up 2% year over year and above analysts’ forecasts.

After the news was released, the stock fell 8% after hours. As of Wednesday’s close, 2024 shares were down nearly 8%.