Shares of software provider Adobe Systems (ADBE) are advancing after the company posted better-than-expected first quarter results and raised its outlook for fiscal 2016.

WHAT’S NEW: Thursday night after the close, Adobe reported Q1 adjusted earnings per share of 66c and record quarterly revenue of $1.38B, beating analysts’ consensus estimates of 61c and $1.34B, respectively. In the quarter, Adobe Marketing Cloud achieved strong bookings growth and record revenue of $377M, representing year-over-year growth of 21%. Q1 Digital Media segment revenue grew by 33% year-over-year to a record $932M, with Creative revenue growing 44% year-over-year to a record $733M.

GUIDANCE: Looking ahead to Q2, Adobe forecast EPS of 64c-70c and revenue of $1.365B-$1.415B, compared to the consensus of 65c and $1.39B, respectively. Based on its strong Q1 results and business momentum, Adobe increased its annual revenue and earnings targets for the year. It raised its FY16 EPS view to about $2.80 from about $2.70, ahead of the consensus of $2.76. It also raised its FY16 revenue view to about $5.8B from its previous view of about $5.7B, topping the consensus of $5.74B.

ANALYST REACTION: This morning, analyst commentary was positive. Three firms, JP Morgan, UBS, and Citi, raised their respective price targets on Adobe following its better-than-expected results and increased guidance. JPMorgan analyst Sterling Auty raised his price target for Adobe Systems to $110 saying the company’s Q1 results were “strong across the board.” The “strength and consistency” of Adobe’s subscription transition should be a relief to investors, Auty told investors in a research note. He expects the stock to move higher in the near term and kept an Overweight rating on the name. UBS raised its price target on Adobe to $114 from $105 following better-than-expected Q1 results. The firm sees the company exiting its transition phase and entering the normalization phase. UBS reiterated its Buy rating on Adobe shares. Citi analyst Walter Pritchard raised his price target for Adobe Systems to $114 saying “high quality” subscription additions drove “strong” Q1 results. The analyst kept a Buy rating on the shares.