Adobe’s Q4 earnings surpassed Wall Street’s expectations, but their updated 2025 forecast is lower than previous estimates.
On a year-over-year basis, Adobe’s earnings rose 13% while sales climbed 11%.
For the entire fiscal year 2025, Adobe projected adjusted earnings of $20.35 per share on revenue of $23.43 billion.
Today, the company’s stock rose slightly in premarket trading.
“Adobe delivered record FY24 revenue, demonstrating strong demand and the mission-critical role Creative Cloud, Document Cloud and Experience Cloud play in fueling the AI economy,” said Shantanu Narayen, chair and CEO, Adobe. “Our highly differentiated technology platforms, rapid pace of innovation, diversified go-to-market and the integration of our clouds position us for a great year ahead.”
“Adobe drove FY24 records of $21.51 billion in revenue, $8.06 billion in cash flows from operations and $19.96 billion in RPO,” said Dan Durn, executive vice president and CFO, Adobe. “Adobe’s strategy, AI innovation and massive cross-cloud opportunity position us well for 2025 and beyond.”
The company reported its Q4 highlights as:
- Adobe achieved revenue of $5.61 billion in its fourth quarter of fiscal year 2024, which represents 11 percent year-over-year growth as reported and in constant currency.
- GAAP operating income in the fourth quarter was $1.96 billion and non-GAAP operating income was $2.60 billion.
- Record cash flows from operations were $2.92 billion.
- Remaining Performance Obligations (“RPO”) exiting the quarter were $19.96 billion.
- Adobe repurchased approximately 4.6 million shares during the quarter.
By CEO NA Editorial Staff
