Adobe raises annual forecasts, CFO exit fans uncertainty over growth strategy
Adobe logo is seen on smartphone in this illustration taken June 13, 2022. REUTERS/Dado Ruvic/Illustration
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June 11 : Adobe raised its annual revenue and profit forecasts on Thursday, but the sudden exit of CFO Dan Durn added to concerns about the company’s strategy to navigate the crowded design industry.
Shares of the Photoshop maker fell 5 per cent in extended trading.
Steve Day, senior vice president of corporate finance, will serve as interim CFO from June 15, the Photoshop maker said.
Durn’s exit comes only three months after long-time CEO Shantanu Narayen decided to step down from the role, leaving the company’s trajectory uncertain till a new successor is appointed.
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Adobe now expects revenue of between $26.5 billion and $26.6 billion for the financial year ending November 2026, up from its earlier forecast of between $25.9 billion and $26.1 billion.
The forecast reflects growing demand for Adobe’s Firefly AI product and design tools, which have been central to the strategy of extending its lead in an increasingly crowded market with smaller firms gaining share.
The company said AI-first annual recurring revenue tripled and exceeded $500 million at the end of the second quarter.
Despite Adobe being the largest design software provider in the world, its dominance is threatened by companies such as Figma and Canva. Both have rapidly adopted AI to boost the appeal of their products.
Adobe shares have fallen over 37 per cent so far this year, with investors weighing the impact of AI design tools launched by leading frontier AI labs that many worry can upend the software design industry.
Adobe now expects fiscal 2026 adjusted earnings per share of between $24.35 and $24.45, compared with its prior forecast of between $23.30 and $23.50 per share.
Revenue for the second quarter came in at $6.62 billion — beating estimates of $6.46 billion, according to data compiled by LSEG.
Separately on Thursday, custom AI chip maker Marvell Technology, appointed Durn as its CFO.
Source: Reuters
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