Adobe Set to Announce Third-Quarter Earnings

Adobe is scheduled to release its third-quarter earnings report on Thursday after the market closes. Here are the key details you need to know:

Adjusted Earnings

According to FactSet, the software maker is expected to post adjusted earnings of $3.98 per share, up from $3.40 per share in the same period last year.

Revenue

FactSet predicts that Adobe will report revenue of $4.87 billion, compared to $4.43 billion in the year-ago period.

Net Income

Adobe is expected to post a net income of $1.32 billion, higher than the $1.14 billion recorded in the prior-year period.

What to Watch

Figma

Investors will closely follow Adobe's commentary on its proposed $20 billion acquisition of collaborative-design-platform Figma. In August, the European Union's antitrust enforcer initiated an investigation into the deal over concerns that it might reduce competition. The European Commission, the EU's executive body, has expressed worries about potential competition reduction in the global markets for interactive product design software and digital asset creation tools. Additionally, they will investigate if the deal would result in the bundling of Figma with Adobe's creative-cloud products, thereby foreclosing rival providers of interactive product design tools.

Firefly

Adobe recently announced the commercial release of Firefly, its family of creative generative artificial intelligence models. These models are integrated across Adobe Creative Cloud, Adobe Express, and Adobe Experience Cloud. While specific details may be limited in Adobe's earnings report, investors can expect to raise questions during the earnings call for additional insights.

For more information, please contact Denny Jacob.