Adobe Beats on Both Lines But Guides Below Consensus

Adobe Inc. reported a beat on both revenue and earnings for its third quarter, with revenue rising 13% to a record $6.76 billion and non-GAAP earnings at $6.13 per share. Despite the strong quarterly performance and significant growth in AI-first annual recurring revenue, the company's fourth-quarter revenue guidance fell slightly below analyst consensus, leading to a premarket stock decline. Adobe also repurchased approximately 9.5 million shares, reducing its share count.