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Adobe shares slip 10% on soft sales forecast

·1 min

Adobe reported stronger-than-expected results for the first quarter. The company’s earnings per share were $4.48, beating the estimated $4.38. Revenue was $5.18 billion, slightly higher than the expected $5.14 billion. Despite the positive results, Adobe’s shares fell by as much as 11% in after-hours trading due to slightly lower quarterly revenue guidance. Adobe also canceled its plan to acquire design software startup Figma and paid a $1 billion termination fee. Additionally, Adobe unveiled an early version of an AI assistant for Reader and Acrobat apps. The company expects second-quarter earnings of $4.35 to $4.40 per share and revenue of $5.25 billion to $5.30 billion. Adobe also plans to allocate $25 billion for share buybacks.