Adobe Stock Dives on Disappointing Outlook

Core Insights - Adobe reported fiscal third-quarter earnings and revenue that exceeded expectations, but its fourth-quarter outlook fell short of analysts' estimates, leading to a decline in share price [1][2]. Group 1: Financial Performance - Adobe's third-quarter revenue reached $5.41 billion, representing an 11% year-over-year increase [2]. - The company reported diluted earnings per share (EPS) of $3.76, up from $3.05 a year earlier [2]. - The Digital Media segment achieved record net-new annualized recurring revenue (ARR) of $504 million, an 8% year-over-year rise, surpassing analysts' projections [2]. Group 2: Future Outlook - For the fourth quarter, Adobe anticipates revenue between $5.50 billion and $5.55 billion, which is below analysts' expectations [1]. - The projected diluted EPS for the fourth quarter is between $3.58 and $3.63, with analysts expecting the higher end of that range [1]. Group 3: Market Reaction - Following the earnings report, Adobe shares fell more than 9% in extended trading [2].