Adobe Inc. shares were up 3% in after-hours trading Tuesday after the software company reported record third-quarter results that bested Wall Street estimates.
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On Tuesday, Chief Executive Shantanu Narayen said in a statement that company officials expect the momentum to continue for the rest of the year "and beyond." As a result of the success, the computer software giant said it would ramp up hiring in the fourth quarter of this year.
Adobe reported net income of $955 million, or adjusted earnings of $2.57 per share, compared with net income of $793 million, or $1.63 a share, in the year-ago quarter. Revenue rose 14% to a record $3.23 billion from $2.8 billion a year ago. Fourth-quarter guidance was also above estimates.
Analysts surveyed by FactSet had expected adjusted earnings of $2.41 a share on revenue of $3.16 billion. Adobe shares are up 51% this year as it continues to feel the effects of the pandemic. The broader S&P 500 index has improved 5.3% in 2020.