Adobe (NASDAQ: ADBE) exceeded Wall Street expectations in its fiscal first-quarter earnings report but failed to impress with its full-year guidance. Shares fell 1% in after-hours trading following the announcement.

The company reported adjusted earnings per share (EPS) of $5.08 on revenue of $5.71 billion, surpassing analysts' estimates of $4.97 EPS and $5.66 billion in revenue, according to Investing.com.

Adobe's digital media segment, its primary growth driver, saw revenue climb 11% to $4.23 billion. The company's digital media annualized recurring revenue (ARR) grew 12.6% year-over-year to $17.63 billion, reflecting steady demand for its creative software products.

Despite a strong quarter, Adobe reiterated its full-year revenue forecast of $23.30 billion to $23.55 billion, with a midpoint of $23.425 billion -- slightly below analysts' consensus of $23.51 billion.

Investors reacted negatively to the company maintaining its previous outlook, signaling potential concerns about growth momentum. While Adobe continues to benefit from strong demand in digital content creation, its cautious guidance suggests a more tempered outlook for the year ahead.

As one of the leading software giants in the creative and digital marketing space, Adobe remains a key player in the industry. However, with competition intensifying and macroeconomic conditions evolving, investors are closely watching its future performance.