By Patrick Thomas
Adobe Inc. reported higher-than-expected revenue in its second quarter, driven by an increase in its subscription software business.
Revenue rose 25% from a year earlier to $2.74 billion. Analysts surveyed by FactSet had expected $2.71 billion of revenue the quarter.
At the company's digital-media business, which accounts for most of its subscription revenue, revenue grew 22% from a year earlier to $1.89 billion.
Adobe built its name around desktop publishing with products like Acrobat and the ubiquitous PDF but has since transitioned to a cloud-based, subscription business.
The company posted a profit of $632.6 million, or $1.29 a share, compared with $663.2 million, or $1.33 a share, a year ago.
Excluding one-time items, the company reported adjusted earnings of $1.83 a share. Analysts were expecting earnings of $1.25 a share, or $1.78 a share on an adjusted basis.
Total operating expenses were $1.59 billion for the quarter, compared with $1.22 billion the same period a year ago.
For its current quarter, Adobe said it expects $2.80 billion in revenue, earnings of $1.40 a share and adjusted earnings of $1.95 a share. The company's forecast is below the $2.83 billion in revenue and $1.33 a share analysts polled by FactSet were expecting.
Shares of Adobe ticked up 2.6% during aftermarket trading. The company's stock is up 22% this year.
Write to Patrick Thomas at Patrick.Thomas@wsj.com
Corrections & Amplifications
This item was corrected at 5:19 p.m. ET. An earlier version incorrectly used Adobe Inc.'s former name Adobe Systems Inc.