Adobe Shares Surge on Strong Q3 Earnings and AI-Driven Growth

Adobe Inc. (NASDAQ: ADBE) saw its shares climb 3.07% in after-hours trading following a robust fiscal third-quarter performance. Revenue reached $5.99 billion, surpassing Wall Street estimates of $5.91 billion, while adjusted earnings per share stood at $5.31, beating consensus forecasts of $5.18. Year-over-year revenue growth of 11% underscores the company's resilience amid broader market turbulence.

Investors welcomed Adobe's stronger-than-expected Q4 guidance, with both EPS and revenue projections exceeding analyst expectations. The company's AI-influenced annual recurring revenue (ARR) crossed $5 billion, signaling accelerating enterprise adoption of its AI-powered creative tools. This milestone offers tangible evidence of Adobe's successful AI monetization strategy.

Despite a 21% year-to-date decline in share price—underperforming the Nasdaq's 14% gain—Thursday's rally reflects renewed confidence in Adobe's ability to capitalize on the AI revolution. The creative software giant's net income ROSE to $1.77 billion, up from $1.68 billion in the prior year's quarter.