Adobe CEO Shantanu Narayen speaks throughout an interview with CNBC on the ground of the New York Inventory Change on Feb. 20, 2024.Brendan Mcdermid | ReutersAdobe shares tumbled as a lot as 11% in prolonged buying and selling Thursday after the design software program maker issued sturdy fiscal first-quarter outcomes however got here up barely quick on quarterly income steering.Here is how the corporate did, in contrast with estimates from analysts polled by LSEG, previously generally known as Refinitiv:Earnings per share: $4.48 adjusted vs. $4.38 expectedRevenue: $5.18 billion vs. $5.14 billion expectedAdobe’s income grew 11% 12 months over 12 months within the quarter, which ended March 1, based on a assertion. Web revenue decreased to $620 million, or $1.36 per share, from $1.25 billion, or $2.71 per share, in the identical quarter a 12 months in the past.In the course of the quarter, Adobe deserted its $20 billion acquisition of design software program startup Figma after U.Ok. regulators discovered aggressive issues. The corporate paid Figma a $1 billion termination price. Adobe introduced an early model of a synthetic intelligence assistant for its Reader and Acrobat apps.In the meantime, in February, OpenAI introduced Sora, which may generate a video based mostly on an individual’s written description. Adobe will work with OpenAI round Sora, David Wadhwani, president of Adobe’s digital media enterprise, stated on the earnings name.”You are going to see us clearly creating our personal mannequin,” he stated. “You are going to see others creating a mannequin. All that creates a tailwind, as a result of the extra folks generate video clips, the extra they should edit that content material.”Adobe sees fiscal second-quarter earnings of $4.35 to $4.40 per share on an adjusted foundation, with $5.25 billion to $5.30 billion in income. The center of the vary implies 9% development. Analysts polled by LSEG had been on the lookout for $4.38 in earnings per share and $5.31 billion in income.Product enhancements within the Adobe Categorical app, the Firefly Companies AI providing and the brand new Acrobat assistant ought to result in acceleration in digital media annualized recurring income within the second half of the 12 months, Wadhwani stated.The corporate stated it was setting apart $25 billion for share buybacks.Leaving out the after-hours motion, Adobe shares have fallen 4% to this point this 12 months, whereas the S&P 500 index has gained 8% throughout the identical interval.Don’t miss these tales from CNBC PRO: