Shares in Adobe jumped 14% in pre-market trading on after the design software maker reported earnings and revenue that topped estimates and lifted full-year guidance.
The company called for adjusted earnings per share of $4.50 to $4.55 for the fiscal third quarter, with $5.33bn to $5.38bn in revenue.
Adobe now expects revenue of between $21.4bn and $21.5bn, compared with its prior forecast of between $21.3bn and $21.5bn.
The company also raised its fiscal-year profit forecast to as much as $18.20 a share, excluding some items, compared with a previous outlook of $18 a share.
“We’re excited about the accelerating pace of innovation across the Digital Media business and pleased with the adoption of AI functionality as well as its early monetization across Document Cloud and Creative Cloud, including our flagship applications, Firefly services and Express,” David Wadhwani, president of Adobe’s Digital Media business, said.
Adobe has developed its own AI image generation tool called Firefly which it trains on data it has the rights to, at a time of heightened concern regarding data privacy and copyright around AI-created content.