Adobe delivered a strong first quarter, but its outlook missed expectations.
The company, which recently dropped its plans to acquire Figma, reported first quarter earnings of $1.36 a share on revenue of $5.18 billion, up 11% from a year ago. Non-GAAP earnings in the first quarter were $4.48 a share.
Wall Street was looking for first quarter non-GAAP earnings of $4.38 a share on revenue of $5.14 billion.
As for the outlook, Adobe projected second quarter revenue of $5.25 billion to $5.3 billion with non-GAAP earnings of $4.35 a share to $4.40 a share. Analysts were looking for $4.38 a share and $5.31 billion in revenue.
For each of its product areas, Adobe posted double-digit percentage growth rates. Digital Media revenue was up 12% from a year ago, Creative revenue was up 11% and Document Cloud posted growth of 18%.
In prepared remarks, Adobe CEO Shantanu Narayen said the company is seeing strong traction with its generative AI rollout across the product portfolio. He said:
"We have innovated by delivering generative AI directly in products—with releases in Adobe Photoshop, Illustrator and Express across both desktop and mobile. AI Assistant in Acrobat and Reader unlocks the tremendous value of the trillions of PDFs around the world. We’re bringing generative AI to Adobe Experience Cloud and will demonstrate our AI Assistant for customer experience management at Adobe Summit."