From CNBC:

Adobe shares dropped 9% in after-hours trading as revenue slightly missed expectations. Earnings per share were $4.48 versus $4.38 expected, with revenue at $5.18 billion versus $5.14 billion anticipated. Net income fell to $620 million from $1.25 billion a year ago. The company abandoned a $20 billion acquisition deal and unveiled an AI assistant for Reader and Acrobat apps.

Despite strong fiscal first-quarter results, Adobe’s revenue grew 11% year over year. The company reported net income dropped to $620 million from $1.25 billion in the same quarter a year ago. They also paid a $1 billion termination fee after scrapping an acquisition and set aside $25 billion for buybacks. Adobe plans to launch an AI assistant for its document apps.

For the fiscal second quarter, Adobe expects an adjusted EPS of $4.35 to $4.40 and revenue of $5.25 billion to $5.30 billion. Analysts had predicted earnings of $4.38 per share and $5.31 billion in revenue. Shares have fallen 4% this year, while the S&P 500 rose 8% over the same period. Executives will further discuss these results on a conference call.



Read more at CNBC:: Adobe (ADBE) Q1 earnings report 2024