ADBE Earnings Prediction
The chart below shows how ADBE performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ADBE sees a +1.34% change in stock price 10 days leading up to the earnings, and a -5.27% change 10 days following the report. On the earnings day itself, the stock moves by -1.73%. This data can give you a slight idea of what to expect for the next quarter's release.
ADBE Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
5.71B
10.27%
1.93%
Gross Margin
88.40%
0.68%
0.16%
Operating Margin
37.85%
2.85%
8.42%
Net Margin
31.69%
164.97%
5.56%
EPS
4.13
203.68%
8.97%
No Data Available
ADBE Earnings Analysis
Adobe Inc Corporation (ADBE.O) Earnings Conference Call
Positive
Record Revenue Growth: Adobe reported a record revenue of $5.71 billion in Q1 2025, reflecting an 11% year-over-year growth.
Earnings Per Share Growth: The company achieved a non-GAAP EPS of $5.08, exceeding expectations of $4.97, and representing a 13% year-over-year growth.
Digital Media Revenue Growth: Digital Media revenue reached $4.23 billion, growing 12% year-over-year, with a strong ending ARR of $17.63 billion, up 12.6% year-over-year.
Cloud Services Performance: Adobe's Creative Cloud and Document Cloud saw healthy performance, driven by broad-based adoption and new offerings like Firefly Services.
AI Innovations Impact: The introduction of AI innovations, such as the Acrobat AI Assistant and Firefly, has contributed to significant user engagement and revenue growth.
Experience Cloud Revenue Growth: Adobe's Experience Cloud achieved revenue of $1.41 billion, with subscription revenue growing 11% year-over-year, showcasing strong demand for personalized experiences.
Record Cash Flows: The company reported record cash flows from operations of $2.48 billion, indicating strong financial health and operational efficiency.
Creative Marketing Integration: Adobe's strategic focus on integrating creativity and marketing through solutions like GenStudio is driving new levels of efficiency and creativity for customers.
Negative
Revenue Growth Slowdown: Adobe's revenue growth of 11% year-over-year, while positive, is lower than the previous quarter's growth rate, indicating a potential slowdown in momentum.
Revenue Record and Future Challenges: Despite achieving a record revenue of $5.71 billion, the company faces challenges in sustaining this growth rate in the coming quarters, as indicated by cautious guidance for Q2 FY25.
Digital Experience Growth Analysis: The Digital Experience segment's growth of 10% year-over-year is lower than the Digital Media segment's growth, suggesting potential weaknesses in this area.
Tax Rate Impact on Profitability: Adobe's effective tax rate of 17.0% on a GAAP basis and 18.5% on a non-GAAP basis may impact net earnings, raising concerns about profitability.
Remaining Performance Obligation Insights: The company has a significant remaining performance obligation (RPO) of $19.69 billion, which, while indicating future revenue, also suggests a reliance on existing contracts to maintain growth.
Earnings Projection Challenges: The anticipated non-GAAP earnings per share for Q2 FY25 is projected to be lower than the current quarter's EPS, indicating potential challenges in maintaining profitability.
Competitive Market Challenges: The company is facing increasing competition in the digital media and experience markets, which could impact future growth and market share.
ADBE FAQs
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ADBE Earning Call Sentiment
Adobe Inc. (NASDAQ:ADBE) Q1 2025 Earnings Call Transcript
ADBE.O
0.67%Positive
The earnings call highlights strong financial performance with 11% revenue growth and 13% EPS growth. AI innovations and new product offerings are contributing positively to revenue. Despite competitive pressures and regulatory risks, Adobe's reaffirmed guidance and substantial share repurchase agreements indicate confidence in future performance. The Q&A provided insights into strong demand for creative products and sustained share repurchases. Overall, the positive financial metrics and strategic initiatives outweigh potential risks, suggesting a positive stock price movement.
