Adobe said Monday that it's raising its earnings targets for fiscal 2018 due to the expected financial impacts of the Tax Cuts and Jobs Act, which reduced the US corporate income tax rate from 35 percent to 21 percent.
The Photoshop maker said it now expects fiscal 2018 non-GAAP earnings of $6.20 per share, up from $5.50, and revenue of $8.725 billion. For the current quarter, Adobe anticipates non-GAAP earnings of $1.43 per share with revenue $2.04 billion in revenue.
Adobe also announced that current CFO Mark Garrett will retire in 2018 after the company names his successor. Garrett has been Adobe's finance chief since 2007 and is credited with leading Adobe's transition to a cloud-based subscription model.
"The new Tax Act is lowering Adobe's effective tax rates, driving a significant increase in our earnings per share targets," Garrett said in prepared remarks.
"With ready access to our offshore cash, we will continue to evaluate investment opportunities to grow our business and we are actively expanding our campuses in the Bay Area and Utah to accommodate the growth of our employee base."
Mike Dillon, executive vice president and general counsel for Adobe, will also retire this year.