Adobe Inc. reported record fiscal second-quarter revenue of $5.87 billion, an 11% increase from a year earlier and ahead of the $5.80 billion consensus estimate. Non-GAAP earnings rose 13% to $5.06 a share, beating forecasts of $4.98, while GAAP earnings were $3.94 a share. The company’s core Digital Media segment generated $4.35 billion in revenue, also up 11% year on year, and Digital Experience revenue reached about $1.45 billion. Remaining performance obligations, a measure of future contracted sales, climbed 10% to $19.7 billion. Management said annualized recurring revenue from AI-first products is on track to top $250 million by year-end. For the current quarter, Adobe projected revenue of $5.88 billion to $5.93 billion and adjusted earnings of $5.15 to $5.20 a share, both above Wall Street expectations. It also raised its full-year outlook to $23.50 billion–$23.60 billion in sales and about $20.60 in adjusted EPS, with CFO Dan Durn citing “strong performance in the first half.” The beat-and-raise failed to buoy the stock: Adobe shares fell roughly 7% in early New York trading on 13 June after initially gaining in late trading. Analysts said investor caution reflects uncertainty over how quickly the company’s artificial-intelligence investments will translate into faster growth.