Adobe stock rose more than 3 percent on Monday after the company said its effective tax rate should be lower in 2018 as a result of recently passed U.S. tax reform.
That's in contrast to IBM's statements last week which is leading to a higher tax rate.
The tech company said that it's expecting an 11 percent tax rate, excluding certain items, through all four quarters of its 2018 fiscal year, which will end on Dec. 1. The company was previously expecting a 21 percent tax rate for the fiscal year.
Additionally, in the 2019 fiscal year Adobe expects the tax rate to "stabilize" at around 18 percent, which is still below the company's 2017 fiscal year tax rate of 21 percent.