.September 13, 2024 09:34 AM

Adobe (NASDAQ:ADBE) exceeded Q3 earnings expectations with $4.65 EPS on $5.41 billion revenue, beating predictions of $4.53 EPS on $5.37 billion revenue. However, Q4 guidance fell short, causing an 8% pre-market stock drop. The company reported $504 million in new digital media ARR, but Q4 earnings are projected between $4.63 and $4.68 per share on $5.50 billion to $5.55 billion revenue, missing market expectations of $4.67 EPS and $5.60 billion revenue. Concerns arose over Creative Cloud growth rates, with Q4 ARR growth expected to be around 11.5%, slightly lower than previous quarters. Adobe anticipates new digital media ARR for Q4 to be around $550 million.