Adobe Systems updated its guidance to account for U.S. tax reform. The company said the Tax Act reduces the U.S. corporate income tax rate to 21% from 35% and imposes a 15.5% tax on accumulated foreign earnings effective Jan. 1. As a result, it expects its fiscal year 2018 GAAP and non-GAAP effective tax rates will decline substantially from rates in fiscal year 2017 and fiscal year 2019 GAAP and non-GAAP effective tax rates to stabilize at a rate of approximately 18%, below its fiscal year 2017 rate of approximately 21%.

In fiscal year 2018, the company expects to EPS of approximately $4.72 on a GAAP-basis, and $6.20 on a non-GAAP basis, compared with its prior targets of approximately $4.40 on a GAAP-basis, and $5.50 on a non-GAAP basis. Total sales are seen about $8.725 billion, below estimates for $8.76 billion.

In first quarter of 2018, the company expects to EPS of approximately $1.05 on a GAAP-basis, and $1.43 on a non-GAAP basis, versus prior targets of approximately $1.15 on a GAAP-basis, and $1.27 on a non-GAAP basis. Forecasts are for $1.14 GAAP and $1.27 normalized. Adobe said it expects a tax charge of approximately $85 million.