04:51 PM EDT, 03/14/2024 (MT Newswires) -- Adobe (ADBE) late Thursday reported stronger-than-expected fiscal first-quarter results, while its revenue outlook for the ongoing three-month period fell short of Wall Street's expectations.

The software maker's adjusted per-share earnings rose to $4.48 in the three months ended March 1 from $3.80 a year earlier, compared with the Capital IQ-polled consensus of $4.38. Revenue jumped 11% to $5.18 billion, higher than the Street's $5.15 billion view.

"Adobe drove record (first-quarter) revenue demonstrating strong momentum across creative cloud, document cloud and experience cloud," Chief Executive Shantanu Narayen said in a statement. "We've done an incredible job harnessing the power of generative (artificial intelligence) to deliver groundbreaking innovation across our product portfolio."

The digital media segment's revenue rose 12% to $3.82 billion, driven by gains in creative and document cloud sales. Net new annualized recurring revenue, or ARR, for the division was $432 million. Digital experience saw a 10% increase in revenue to $1.29 billion, with subscription gaining 12%.

For the ongoing quarter, the company projected adjusted EPS at $4.35 to $4.40 on revenue between $5.25 billion and $5.30 billion. The market consensus is $4.37 per share and $5.31 billion, respectively. Adobe forecast digital media net new ARR to be about $440 million for the quarter.

The stock was sliding 11% in after-hours activity.

Adobe separately announced a new stock repurchase authorization for up to $25 billion through March 14, 2028.

"Our new $25 billion share repurchase authorization underscores what a special company Adobe is, with the profitability and cash flows to drive growth and invest in innovation while returning significant capital to our shareholders," Chief Financial Officer Dan Durn said.

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