Adobe tops Q3 earnings targets

Adobe reported third quarter earnings and revenue Wednesday, and in the process marked its tenth straight quarter of record revenue growth.

The creative software giant reported Q3 net income of $272 million, or 54 cents a share.

Non-GAAP earnings in the quarter were 75 cents a share on revenue of $1.46 billion, up 20 percent year-over-year.

Wall Street was looking for earnings of 72 cents a share on revenue of $1.45 billion.

Adobe's digital media business, which includes the Marketing and Document clouds, ended the quarter with a combined $3.70 billion in annualized recurring revenue, up from $3.41 billion in the previous quarter.

Broken down, Creative Cloud revenue was $803 million, up 39 percent year-over-year, and Document Cloud revenue was $187 million.

Meanwhile, Adobe Marketing Cloud brought in $404 million for the quarter, up 10 percent year-over-year. Adobe added that 83 percent of Q3 revenue from recurring sources, an all-time high for the company.

For the current quarter, Adobe now projects revenue in the range of $1.55 billion to $1.6 billion with earnings between 83 cents and 89 cents a share.

Analysts are looking for earnings of at least 78 cents a share on revenue of $1.57 billion.

Adobe's stock was up more than four percent in after market trading.