Earnings Performance - Adobe's Q3 2024 non-GAAP earnings were 4.65pershare,beatingestimatesby2.655.41 billion, surpassing estimates of 5.37billionandgrowing115.18 billion, up 11.6% YoY [5] - Product revenues declined 14.6% YoY to 82 million, while services & other revenues decreased 10.4% YoY to 146 million [5] Segment Performance - Digital Media segment revenues grew 11% YoY to 4billion,withCreativeCloudcontributing3.19 billion (up 10% YoY) and Document Cloud generating 807million(up181.35 billion, with subscription revenues rising 12% YoY to 1.23billion[9]OperationalMetrics−Grossmarginexpanded170bpsYoYto89.82.86 billion, but as a percentage of total revenues, they contracted 50 bps to 52.9% [10] - Adjusted operating margin expanded 30 bps YoY to 46.5% [10] Financial Position - Cash and short-term investments stood at 7.5billionasofAug30,2024,downfrom8.1 billion as of May 31, 2024 [11] - Trade receivables increased to 1.8billionfrom1.6 billion in the previous quarter [11] - Long-term debt remained stable at 4.128billion[11]−Cashgeneratedfromoperationsincreasedto2.02 billion from 1.94billioninthepreviousquarter[11]FutureOutlook−Q42024revenueguidanceisprojectedbetween5.50 billion and 5.55billion[13]−DigitalMediarevenuesareexpectedtobebetween4.09 billion and 4.12billion,whileDigitalExperiencerevenuesareanticipatedtorangefrom1.36 billion to 1.38billion[13]−NetnewARRintheDigitalMediasegmentisprojectedat550 million, and Digital Experience subscription revenues are expected to be between 1.23billionand1.25 billion [13] - Non-GAAP earnings per share are forecasted between 4.63and4.68 [14] Market Position and Growth - Adobe faces stiff competition in the AI software space from tech giants and well-funded startups like Stability AI and Midjourney [4] - The company's investments in generative AI capabilities and AI-powered offerings are expected to boost its prospects [3] - Estimates have been trending upward, with Adobe holding a Zacks Rank 3 (Hold) [15][18]