Adobe stock slips on soft fourth-quarter revenue guidance

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Adobe reported third-quarter results on Thursday that beat Wall Street expectations for sales and earnings, but the stock slid 10% in extended trading on fourth-quarter guidance that came up short. Analysts polled by LSEG were expecting a forecast of $4.67 of earnings on $5.61 billion of sales. Adobe said it recorded $1.68 billion of net income during the quarter, or $3.76 per diluted share. Adobes biggest line of business, Digital Media, which includes the companys Creative Cloud subscriptions that use generative AI called Firefly, grew 11% on an annual basis to sales of $4 billion. In total, Adobe recorded $5.18 billion in subscription revenue during the quarter, up 11% year-over-year.

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