- Adobe’s adjusted earnings per share (EPS) forecast for 2025 is between $20.20 and $20.50, slightly below the estimated $20.52.
- For the first quarter, Adobe predicts an adjusted EPS of $4.95 to $5.00, aligning with the estimated $4.95.
- In the fourth quarter, Adobe reported an adjusted EPS of $4.81, reflecting an increase from last year’s $4.27, and surpassing the estimated $4.67.
- Adobe’s fourth-quarter revenue reached $5.61 billion, up by 11% year-over-year, exceeding the expected $5.54 billion.
- Subscription revenue grew by 13% to $5.37 billion, outperforming the estimate of $5.28 billion.
- Product revenue declined by 29% to $81 million, falling short of the forecasted $99.8 million.
- Research and Development (R&D) expenses rose by 12% to $999 million, slightly under the expected $1.02 billion.
- Adjusted operating income jumped by 11% to $2.60 billion, surpassing the estimate of $2.53 billion.
- Services and other revenue decreased by 6.4% to $160 million, but managed to beat the estimated $154.8 million.
- Adobe anticipates a $200 million revenue headwind in 2025 due to foreign exchange impacts and the ongoing transition from perpetual offerings to subscriptions.
- Adobe achieved records in fiscal year 2024 with $21.51 billion in revenue, $8.06 billion in cash flows from operations, and $19.96 billion in remaining performance obligations (RPO).
- Shares of Adobe rose by 2.5% in post-market trading to $563.75, with 10,557 shares traded.
Adobe Systems on Smartkarma
On Smartkarma, independent analysts like Baptista Research are closely following Adobe Systems‘ performance. In a recent report titled “Adobe’s Winning Formula for Double-Digit Growth: Creative Cloud, Document Cloud, and AI!” published on 9/24, they highlighted Adobe’s strong trajectory in the third quarter of fiscal year 2024. With revenue reaching $5.41 billion, showing an 11% increase from the previous year, Adobe’s growth was driven by the success of Creative Cloud, Document Cloud, and Experience Cloud.
Furthermore, Baptista Research‘s report “Adobe Inc.: Sustainable AI Integration & Generative Tools Development – Major Drivers” emphasized Adobe’s positive financial performance in the second quarter of fiscal year 2024. With total revenue hitting $5.31 billion, reflecting an 11% year-over-year growth, Adobe’s earnings per share showed significant increases on both GAAP and non-GAAP bases. These results indicate Adobe’s operational excellence and the increasing demand for its products across all customer segments.
A look at Adobe Systems Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts utilizing the Smartkarma Smart Scores have evaluated Adobe Systems‘ long-term outlook based on key factors. Adobe Systems, a company known for developing computer software products and technologies, has received varying scores across different metrics. With a solid Growth score of 3 and Resilience score of 4, Adobe Systems shows promise in terms of expanding its operations and weathering market challenges.
However, the company has room for improvement in Value and Dividend scores, rated at 2 and 1 respectively. Despite this, Adobe Systems‘ Momentum score of 3 suggests a decent level of market excitement and interest in the company’s future prospects. Overall, analysts are cautiously optimistic about Adobe Systems‘ long-term potential given its strength in growth and resilience, though it may face challenges in terms of value and dividend offerings.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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