US-based Adobe Inc, the world’s largest developer of imaging software, increased net income by 4.3 per cent in the first quarter of fiscal 2026 and revenue by 12 per cent, according to reports.
Net income for the quarter ended 27 February was $1.811 billion, or $4.14 per share, compared with $1.811 billion, or $4.14 per share, for the comparable period a year earlier. Adjusted earnings rose to $6.06 from $5.08 per share.
Revenue climbed to $6.4 billion from $5.71 billion a year earlier. In particular, revenues from the sale of subscriptions to the company’s products increased by 13% to $6.2bn.
Experts on average estimated adjusted earnings at $5.87 per paper on revenue of $6.28bn, according to LSEG. The company itself in December predicted earnings in the range of $5.85-5.9 per share, revenue – $6.25-6.3 billion.
Adobe expects fiscal second quarter revenue to be around $6.43-6.48 billion, net income of $4.35-4.4 per share, and adjusted earnings of $5.8-5.85 per share. Analysts on average forecast revenue of $6.43 billion.
The company also announced that Shantanu Narayen will step down as CEO after a successor is found. He has led Adobe for 18 years. Narayen will remain chairman to support the next CEO, the statement said.
Adobe’s stock price fell 7.8 per cent in extra trading on Thursday on news of the CEO change. Over the past three months, the company’s market value has fallen 24% (to $110.7bn), while the Nasdaq Composite stock index has lost 5%.