Following AI-driven sales that exceeded Wall Street's anticipated profits and sent shares higher in late trading, the creative software giant increased its annual outlook.

Adobe just revealed record-breaking quarterly revenue thanks to advancements in artificial intelligence. As AI revenues surpassed corporate expectations, the creative software giant reported adjusted profits per share of $5.31 late Thursday on revenue that increased 11% year over year to a record $5.99 billion in the fiscal third quarter, above analysts' projections gathered by Visible Alpha.

Adobe has already exceeded its "AI-first" revenue targets for the year, according to CEO Shantanu Narayen, and the business has improved its outlook as a result of the revenue generated by AI in the third quarter. Previously, the business projected adjusted earnings of $20.50 to $20.70 on sales of $23.50 billion to $23.6 billion, but now it expects adjusted earnings of $20.80 to $20.85 per share and revenue of $23.65 billion to $23.7 billion for the entire year.

Recently, Adobe's stock has been increasing in late trading. However, they have had a difficult year thus far, as concerns over the company's AI advancements and escalating competition have caused the stock to drop more than 20% for 2025 through Thursday's closing. Wall Street is feeling upbeat. The shares ended Thursday slightly below $351, and Visible Alpha's mean price goal of $461, which is more than 30% higher, is the target. The majority of analysts who follow the stock have given it a "buy" recommendation. However, given recent highs, even that aim reflects some prudence. In February 2024, the shares were worth more than $600.