Adobe reports strong Q2 results

Shares of Adobe were down slightly after market despite the beat.
Written by Natalie Gagliordi, Contributor

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Adobe delivered solid second quarter financial results on Thursday, once again beating corporate revenue records.

The software giant reported fiscal first quarter earnings of $663 million, or $1.33 a share.

Read also: Adobe addresses critical vulnerabilities in Acrobat, Reader

Non-GAAP earnings in the quarter were $1.66 a share on revenue of $2.20 billion, up 24 percent year-over-year.

Wall Street was looking for earnings of $1.54 a share on revenue of $2.16 billion.

Adobe continues to see successful revenue returns following its migration to subscription-based services. The Photoshop maker said subscription revenue was $1.9 billion, product revenue was $150 million and services and support revenue came in at $121 million.

Broken out, Creative Cloud revenue reached $1.3 billion in Q2, while Document Cloud was $243 million. Meanwhile, revenue from Adobe's Digital Media unit overall was $1.55 billion and Digital Experience segment revenue was $586 million.

Read also: How Adobe proved me wrong about AI in photography (TechRepublic)

"Adobe delivers all the capabilities to enable transformative digital experiences, including content creation and management, predictive analytics and commerce," said Adobe CEO Shantanu Narayen, in a prepared statement. "Our record results in Q2 reflect continued execution against this significant opportunity where Adobe is the clear market leader."

For the current quarter, analysts are looking for earnings of at least $1.61 a share on revenue of $2.22 billion. Adobe followed up with a revenue estimate of $2.24 billion with earnings of $1.68 per share.

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