Adobe Systems IncorporatedAdobe beat Q3 estimates and raised full-year targets, but shares fell as Q4 revenue guidance came in below expectations at the midpoint.
Adobe Inc. reported third-quarter revenue of $6.76 billion, beating the $6.70 billion consensus estimate, with adjusted earnings of $6.13 per share also topping expectations, according to Reuters. The company raised its full-year revenue and earnings targets, and annual recurring revenue from its AI-first products more than doubled year over year. Despite the beat and raise, Adobe shares fell after hours because fourth-quarter revenue guidance came in slightly below expectations at the midpoint. The reaction underscores that investors now demand proof AI is accelerating bookings, retention or pricing rather than simply being attached to existing products. Salesforce, by contrast, has begun producing such evidence, with Reuters Breakingviews noting that Agentforce exceeded roughly $1.5 billion in annualized recurring revenue while Salesforce posted its strongest net-new annual order value growth in four years.
Adobe Systems IncorporatedAdobe beat Q3 estimates and raised full-year targets, but shares fell as Q4 revenue guidance came in below expectations at the midpoint.
Salesforce.com IncSalesforce's Agentforce exceeded roughly $1.5 billion in annualized recurring revenue with its strongest net-new annual order value growth in four years, cited as evidence AI is driving bookings.