Adobe Tops Estimates, Provides Strong Quarterly, Annual Outlook

Adobe also announces the retirement of vice president and CFO John Murphy.
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Shares of Adobe  (ADBE) - Get Report were rising slightly Tuesday after the company announced first quarter results that topped estimates. were rising slightly Tuesday after the company announced first quarter results that topped estimates.

The San Jose, California company reported adjusted earnings of $3.14 per share on record quarterly revenue of $3.91 billion, representing a 26% year over year increase. 

Adobe was expected to report earnings of $2.79 per share on revenue of $3.75 billion, according to analysts polled by FactSet. 

"Adobe’s Creative Cloud, Document Cloud and Experience Cloud have become mission critical to all customer segments — from students to individuals to large enterprises — across the world," said CEO Shantanu Narayen in a statement. 

Adobe expects second quarter revenue of $3.72 billion and earnings of $2.81 per share. Analysts are expecting revenue of $3.68 billion with earnings of $2.70 per share. 

For the year, the company said it expects revenue of  $15.45 billion with earnings of $11.85 per share. Analysts are expecting revenue of $15.17 billion and earnings of $11.27 per share. 

Adobe shares were rising 0.5% after closing Tuesday's session up 1.7%. 

Read More: Here's How to Trade Adobe After It Reports Earnings

Separately, Adobe announced Tuesday that executive vice president and CFO John Murphy intends to retire sometime in 2021. 

During Murphy's tenure, Adobe's revenue grew from over $7 billion in 2017 to over $12 billion in 2020. 

"John has made significant contributions to Adobe for which I’m deeply grateful and I wish him well as he pursues his passion for philanthropy," said Narayen. 

Adobe will be conducting a search and evaluating internal and external candidates to replace him.

Last quarter, Adobe announced that it was buying Workfront, a project management platform for marketers, for $1.5 billion.