Adobe shares tumble on revised 2016 revenue forecast

The creative software giant expects revenue of $5.7 billion and earnings of $2.70 per share, below a consensus of $5.93 billion and $3.19 per share.

Adobe Systems on Tuesday revised its revenue guidance for fiscal 2016 with numbers well below Wall Street expectations.

The creative software giant expects revenue of $5.7 billion and earnings of $2.70 per share, below a consensus of $5.93 billion and $3.19 per share. On a GAAP basis, Adobe now expects earnings of $1.80 per share.

Adobe shares tumbled as much as 11 percent in after market trading following the news.

The photoshop maker also revealed targets for its Digital Media and Marketing Cloud platforms -- Adobe's longtime revenue darlings.

Revenue on both platforms is expected to increase 20 percent in fiscal 2016, with Marketing Cloud bookings rising 30 percent and Digital Media annualized recurring revenue at 25 percent.

"We are targeting 20 percent revenue and 30 percent non-GAAP earnings CAGRs between FY15 and FY18 that reflect our business momentum and growing addressable markets," Adobe CEO and president Shantanu Narayen said in a statement.

The revenue warning is a bit out of character for Adobe, as the company has posted solid earnings over the last several quarters.

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