Adobe is expanding its artificial intelligence (AI) strategy with new premium video generation capabilities as the company builds on the success of its Firefly AI platform, which the company said has generated more than 16 billion pieces of content since launch.During its fourth-quarter earnings call on Wednesday (Dec. 11), Adobe revealed plans to introduce AI video generation as a premium offering early next year. Currently in limited public beta, the video generation feature has already driven a 70% incre ...

For the quarter ended November 2024, Adobe Systems (ADBE) reported revenue of $5.61 billion, up 11.1% over the same period last year. EPS came in at $4.81, compared to $4.27 in the year-ago quarter.The reported revenue represents a surprise of +1.24% over the Zacks Consensus Estimate of $5.54 billion. With the consensus EPS estimate being $4.66, the EPS surprise was +3.22%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine t ...

Earnings Performance - Adobe reported quarterly earnings of $4.81 per share, beating the Zacks Consensus Estimate of $4.66 per share, representing a 3.22% earnings surprise [1] - This compares to earnings of $4.27 per share a year ago [1] - Over the last four quarters, the company has surpassed consensus EPS estimates four times [2] Revenue Performance - Adobe posted revenues of $5.61 billion for the quarter ended November 2024, surpassing the Zacks Consensus Estimate by 1.24% [2] - This compares to year-ago revenues of $5.05 billion [2] - The company has topped consensus revenue estimates four times over the last four quarters [2] Stock Performance - Adobe shares have lost about 8.3% since the beginning of the year versus the S&P 500's gain of 26.5% [4] - The stock is currently rated Zacks Rank 4 (Sell), indicating expected underperformance in the near future [7] Future Outlook - The current consensus EPS estimate is $4.95 on $5.73 billion in revenues for the coming quarter [8] - For the current fiscal year, the consensus EPS estimate is $20.53 on $23.77 billion in revenues [8] - The sustainability of the stock's immediate price movement will depend on management's commentary on the earnings call [3] Industry Context - Adobe belongs to the Zacks Computer - Software industry, which is currently in the top 32% of the 250 plus Zacks industries [9] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [9] Peer Performance - Simulations Plus (SLP), another company in the same industry, is expected to post quarterly earnings of $0.18 per share, representing a year-over-year change of +80% [10] - Simulations Plus' revenues are expected to be $18.69 million, up 28.9% from the year-ago quarter [11]

Adobe (ADBE) issued a revenue outlook that came in below analysts’ expectations, sending shares lower in extended trading Wednesday.  The Creative Cloud software provider projected 2025 revenue of $23.3 billion to $23.55 billion, below the analyst consensus of $23.77 billion from Visible Alpha. Its first-quarter revenue forecast of $5.63 billion to $5.68 billion also fell short of expectations. In its fiscal fourth-quarter, Adobe delivered revenue of $5.61 billion, up 11% year-over-year, and above the anal ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Revenue Growth and Performance - Adobe achieved record FY2024 revenue of $21.51 billion, representing 11% year-over-year growth[3][10] - Digital Media segment revenue reached $15.86 billion in FY2024, with 12% year-over-year growth, and net new Digital Media ARR exceeded $2.0 billion[13] - Document Cloud revenue grew to $3.18 billion in FY2024, an 18% year-over-year increase[14] - Creative revenue reached $12.68 billion in FY2024, with 10% year-over-year growth (11% in constant currency)[15] - Digital Experience segment revenue was $5.37 billion in FY2024, with 10% year-over-year growth, and subscription revenue grew 12% to $4.86 billion[15] - For FY2025, Adobe targets total revenue of $23.30 billion to $23.55 billion, with Digital Media segment revenue expected to grow 11% year-over-year[17] - Adobe expects a $200 million foreign exchange headwind to FY2025 revenue due to currency fluctuations[16] Financial Metrics and Cash Flow - Adobe reported record Q4 operating cash flows of $2.92 billion and FY2024 operating cash flows of $8.06 billion[5][11] - Remaining Performance Obligations (RPO) reached a record $19.96 billion at the end of Q4, reflecting 16% year-over-year growth[6] - Cash and cash equivalents increased to $7.613 billion from $7.141 billion year-over-year[29] - Total current assets rose to $11.232 billion from $11.084 billion year-over-year[29] - Net cash provided by operating activities increased to $2.921 billion from $1.597 billion year-over-year[31] Profitability and Earnings - GAAP net income for the quarter was $1.683 billion, up from $1.483 billion in the same period last year[31] - Non-GAAP operating income for the quarter was $2.596 billion, compared to $2.343 billion in the prior year[34] - Non-GAAP diluted net income per share for the quarter was $4.81, up from $4.27 in the same period last year[35] - GAAP effective income tax rate for the quarter was 15.5%, with a non-GAAP effective income tax rate of 18.5%[37] - Fiscal year 2025 GAAP diluted net income per share target ranges from $15.80 to $16.10, with a non-GAAP target of $20.20 to $20.50[38] - Fiscal year 2025 GAAP operating margin target is 36.0%, with a non-GAAP target of 46.0%[38] - GAAP diluted net income per share for the first quarter is $3.85, with a high of $3.90 for fiscal 2025[40] - Non-GAAP diluted net income per share for the first quarter is $4.95, with a high of $5.00 for fiscal 2025[40] - GAAP operating margin is 37.0%, while Non-GAAP operating margin is 47.0%[40] - GAAP effective income tax rate is 19.0%, adjusted to 18.5% for Non-GAAP[40] Share Repurchase and Capital Allocation - Adobe repurchased approximately 17.5 million shares during FY2024 and 4.6 million shares in Q4[7][12] - Shares used to compute diluted net income per share are 439 million[40] Non-GAAP Financial Measures - Adobe uses non-GAAP financial measures for internal planning and forecasting, providing greater transparency for key metrics[41] - Non-GAAP measures exclude items like stock-based compensation, amortization of intangibles, and income tax adjustments[42] - Adobe provides reconciliations of non-GAAP financial measures to GAAP measures for investor evaluation[42]

Adobe Inc ADBE will be reporting its fourth-quarter earnings on Wednesday. Wall Street expects $4.66 in EPS and $5.54 billion in revenues as the company reports after market hours.The stock is down 12.33% over the past year, up 18.46% over the past six months.Let’s look at what the charts indicate for Adobe stock and how the stock currently maps against Wall Street estimates.Read Also: Adobe Q4 Earnings Preview: Analyst Says Investors May Be Missing Healthy Subscriber GrowthAdobe Stock In Strong Bullish Tre ...

It has been almost two years since I published my last article about Adobe Inc. (NASDAQ: ADBE ) and in my last article I claimed that Adobe was still not a "Buy" and wrote in my conclusion: My analysis is focused on high-quality companies, that can outperform the market over the long-run due to a competitive advantage (economic moat) and high levels of defensibility. Focused on European and North American companies, but without constraints regarding market capitalization (from large cap to small cap compani ...

Software stocks have taken off in the second half of 2024. The iShares Expanded Tech Software Sector ETF ( IGV ) has not only turned significantly higher since the middle of the year, but it has Freelance Financial Writer | Investments | Markets | Personal Finance | RetirementI create written content used in various formats including articles, blogs, emails, and social media for financial advisors and investment firms in a cost-efficient way. My passion is putting a narrative to financial data. Working with ...

Adobe Systems (ADBE) ended the recent trading session at $516.20, demonstrating a +0.05% swing from the preceding day's closing price. This move lagged the S&P 500's daily gain of 0.25%. Meanwhile, the Dow lost 0.29%, and the Nasdaq, a tech-heavy index, added 0.97%.Shares of the software maker have appreciated by 6.86% over the course of the past month, outperforming the Computer and Technology sector's gain of 0.06% and the S&P 500's gain of 3.51%.The upcoming earnings release of Adobe Systems will be of g ...