Adobe stock slips on soft fourth-quarter revenue guidance

adobe Thursday reported third-quarter results that missed Wall Street expectations for sales and earnings, but the stock slid in trading up 10% on fourth-quarter guidance that came in short.

Here's how Adobe did for the quarter ending in August versus the LSEG consensus estimate:

• revenue: $5.41 billion vs $5.37 billion expected
• Earnings per share: $4.65 adjusted vs. $4.53 approx

Adobe said it expects fourth-quarter earnings per share of between $4.63 and $4.68 on revenue between $5.5 billion and $5.55 billion. Analysts polled by LSEG had expected earnings per share of $4.67 on sales of $5.61 billion.

Adobe said it recorded net income of $1.68 billion in the quarter, or $3.76 per diluted share. That's up $1.40 billion, or $3.05 per share, from a year ago.

Adobe's biggest line of business, digital media, which includes the company's Creative Cloud subscription that uses generative artificial intelligence called Firefly, grew 11% to $4 billion in sales on a year-over-year basis.

In total, Adobe recorded subscription revenue of $5.18 billion in the quarter, up 11% year-over-year.