Adobe shares surged 15% on strong Q2 results, beating estimates with positive outlook

From CNBC: 2024-06-14 15:25:40

Adobe shares surged 15% after beating analysts’ estimates with earnings per share of $4.48 and revenue of $5.31 billion in Q2. CEO Narayen credited strong growth in Creative Cloud, Document Cloud, and Experience Cloud, as well as advancements in AI. New annualized recurring revenue for Digital Media surpassed expectations at $487 million.

In a positive contrast to peers, Adobe’s results were uplifting amid challenging economic conditions and increased competition. JMP analysts maintained a hold rating, emphasizing the company’s integration of AI across its product portfolio. Piper Sandler analysts raised revenue estimates for 2024 and 2025, citing encouraging customer reactions to recent innovations.

Other software companies like Salesforce, MongoDB, SentinelOne, UiPath, and Veeva have seen declines in revenue and share prices. However, Oracle shares rallied after cloud deals with Google and OpenAI, and CrowdStrike was added to the S&P 500. Despite a 15% rally, Adobe shares are still down 12% for the year, trading at $525.88.



Read more at CNBC:: Adobe shares surge and head for sharpest rally since 2020