- Adobe reported an adjusted earnings per share (EPS) of $5.06, exceeding the estimated $4.98 and last year’s $4.48.
- The company’s revenue reached $5.87 billion, marking an 11% increase year-over-year, surpassing the $5.8 billion estimate.
- Digital experience revenue was $1.46 billion, up 9.8% year-over-year, slightly above the $1.44 billion forecast.
- Subscription revenue grew by 11% year-over-year to $5.64 billion, beating the $5.56 billion estimate.
- Product revenue came in at $88 million, reflecting a 15% decrease year-over-year, missing the $93.6 million estimate.
- Research and Development (R&D) expenses increased by 10% year-over-year to $1.08 billion, surpassing the estimated $1.06 billion.
- Adjusted operating income was $2.67 billion, up 9.5% year-over-year, above the estimated $2.62 billion.
- Services and other revenue was $144 million, experiencing a slight decline of 0.7% year-over-year, but surpassing the $142.7 million estimate.
- Adobe’s CFO, Dan Durn, announced an increase in the company’s full-year 2025 total revenue and EPS targets due to strong performance in the first half of the year.
- Adobe’s shares rose by 3.9% in post-market trading, reaching a price of $430.00, with 12,837 shares traded.
Adobe Systems on Smartkarma
Analysts at Baptista Research on Smartkarma have been closely tracking Adobe Systems, providing valuable insights and analysis on the company’s performance. In their report titled “Adobe’s Gen AI Playbook: The $200 Billion Opportunity You Can’t Ignore!“, they highlight Adobe’s Q1 fiscal year 2025 financial results, which show a record $5.71 billion in revenue, marking an 11% year-over-year increase. The report also emphasizes the significant growth in Adobe’s earnings per share, highlighting the crucial role of Adobe’s products in the global digital economy.
In another report by Baptista Research titled “Adobe Inc.: Strategic Product Tiering & Monetization As A Pivotal Factor Driving Growth! – Major Drivers“, analysts discuss Adobe’s recent earnings release for the fiscal year 2024. The report mentions Adobe’s impressive performance with record revenue of $21.51 billion, an 11% year-over-year increase, driven by strong results in its Digital Media and Digital Experience divisions. The analysts acknowledge both the strengths and challenges faced by Adobe, providing investors with valuable perspectives on the company’s growth trajectory.
A look at Adobe Systems Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 1 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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
Based on Smartkarma Smart Scores, Adobe Systems is projected to have a positive long-term outlook. The company scores high in Growth and Resilience, indicating potential for future expansion and ability to withstand challenges. Additionally, its Momentum score suggests a strong market presence. While the Value score is moderate, the company’s low Dividend score may not attract income-focused investors. Overall, Adobe Systems‘ focus on developing innovative computer software products positions it well for sustained growth in the ever-evolving technology industry.
Adobe Systems Incorporated is a technology firm that creates computer software products for various media platforms. The company’s broad range of application software products enables users to create, distribute, and manage information efficiently. With high scores in Growth and Resilience, Adobe is poised for continued success in the software market due to its innovative offerings and ability to adapt to changing industry trends. Although the company’s Dividend score is low, its strong Momentum score reflects a solid market presence, reinforcing its position as a key player in the software development sector.
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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