Adobe shares climbed on Wednesday after the software company revealed stronger than expected quarterly results and rapid growth in its cloud division.

The California-based company said subscription revenues climbed 41 per cent in the quarter to September 2 from the same period in 2015, offsetting a continuing decline in traditional product sales.

Revenues in the digital media division, which includes the Creative Cloud offering that is popular with photographers and graphic artists, jumped 28.6 per cent on a year-on-year basis in the financial third quarter to $990m, while sales of its cloud-based marketing suite climbed 9.7 per cent.

Total sales rose by a fifth to $1.46bn, narrowly topping Wall Street estimates.

The strong performance in Adobe’s cloud division sparked optimism among some analysts that Adobe’s transition to a subscription model, where customers pay an ongoing fee rather than purchasing software on a one-time basis, is continuing apace.

The results were “strong with upper echelon software industry growth rates showing across many metrics, which is impressive given Adobe’s size”, said Brian Schwartz, an analyst at Oppenheimer.

Net income in the financial third quarter rose to $270.8m, from $174.5m in the same period in 2015.

On an adjusted basis, which excludes certain items, earnings per share clocked in at 75 cents, topping analyst expectations by three cents.

In the current quarter, Adobe said it expected adjusted EPS of 83-89 cents compared with Wall Street forecasts of 78 cents.

Adobe shares rallied 7.1 per cent to $107.78, extending the year-to-date rise to 14.7 per cent.

Elsewhere, the US energy sector zipped higher as the price of oil rose on the back of a bullish report on American crude stocks.

West Texas Intermediate, the US oil marker, rose 2.9 per cent to $45.34 a barrel, while international standard Brent advanced 2.1 per cent to $46.83.

Among the leaders was EOG Resources, a large exploration and production group, which jumped 3.5 per cent to $93.52.

The shares of FedEx, the package delivery group, climbed 6.9 per cent to $173.86 after it revealed stronger than expected quarterly results and lifted its profit outlook.

FedEx unveiled earnings in the quarter to the end of August of $715m, from $692m in the same three-month period the year before.

Adjusted earnings in the fiscal first quarter were $2.90 a share, compared with estimates of $2.80. Revenues jumped 19.5 per cent to $14.7bn, also beating estimates of $14.6bn.

The Memphis-based group said it expected profits, excluding certain items, in the current financial year to come in at $11.85-$12.35 a share, up from a previous outlook of $11.75-$12.25.

At the close of trade, the S&P 500 had risen 1.1 per cent to 2,163.1, the Dow Jones Industrial Average rose 0.9 per cent to 18,293.7, and the Nasdaq Composite gained 1 per cent to 5,295.2.

The upbeat sentiment on Wall Street early in the day came after the Bank of Japan unveiled plans to strengthen its monetary stimulus by saying it will aim to overshoot its inflation target of 2 per cent and cap the country’s 10-year bond yield at zero per cent. Stocks climbed further after the Federal Reserve left short-term interest rates unchanged, but indicated that the case for a rate increase had “strengthened”.

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