HomeFinancial MarketsAdobe’s Stock Surges More Than 14% Percent On the Back of Record...

Adobe’s Stock Surges More Than 14% Percent On the Back of Record Revenue

Software company Adobe shared its report for the second quarter, which showed record revenue and earnings results that beat the expectations of analysts. The company’s shares jumped 14.5%, marking the biggest single-day surge since 2020.

Adobe’s revenue in the second quarter came at $5.31 billion, increasing by 10% year-over-year and beating analysts’ estimations of $5.29 billion. Additionally, the company had $4.48 in adjusted earnings per share compared to the estimated $4.39 per share.

The company now expects $5.33 billion to $5.38 billion in revenue for the third quarter while also raising its forecast for the fiscal 2024 and expecting its total revenue for the year to be $21.40 billion to $21.50 billion.

Adobe’s CEO Shantanu Narayen credited the company’s success to the growth of several divisions and advancements in the use of Artificial Intelligence.

 “Adobe achieved record revenue of $5.31 billion driven by strong growth across Creative Cloud, Document Cloud, and Experience Cloud,” Narayen said in a press release. “Our highly differentiated approach to AI and innovative product delivery are attracting an expanding universe of customers and providing more value to existing users.”

After the most recent surge, Adobe’s stock closed at $525.31 on Friday. The company’s shares are now 9.44% down year-to-date.

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