Adobe shares fall on weak Q4 revenue outlook

Adobe beat Q3 expectations with record revenue of $6.76 billion, up 13% year-over-year, and adjusted earnings of $6.13 per share. Operating cash flow hit a quarterly record of $2.52 billion, while AI-first product revenue surpassed $650 million after growing over 150% annually. Despite the strong quarter, shares fell over 1% in after-hours trading as Q4 revenue guidance disappointed. The midpoint of Adobe's $6.80 to $6.85 billion forecast missed analyst consensus of $6.85 billion. The company also confirmed incoming CEO Anil Chakravarthy takes over December 1.