Shares of Adobe (NASDAQ:ADBE) gained in after-hours trading after the company reported earnings for its first quarter of Fiscal Year 2023. Earnings per share came in at $3.80, which beat analysts’ consensus estimate of $3.68 per share. Sales increased by 9.4% year-over-year, with revenue hitting $4.66 billion. This beat analysts’ expectations of $4.62 billion.
Adobe saw gains throughout its operations. Digital Media delivered a big win, up 9% over this time last year to reach $3.4 billion. Creative, meanwhile, added a similar 8% win in year-over-year comparisons to hit $2.76 billion. The big winner, though—at least in growth terms—was Document Cloud revenue, up 13% to $634 million. Revenue for the Digital Experience segment hit $1.18 billion, up 11% in year-over-year comparisons, and Digital Experience subscription revenue was up 12% to $1.04 billion.
Looking forward, management now expects revenue for Q2 2023 to be in the range of $4.75 billion to $4.78 billion. EPS is expected to be in the range of $3.75 – $3.80.
Overall, Wall Street has a consensus price target of $384.75 on Adobe, implying 15.13% upside potential, as indicated by the graphic above.
