Adobe Q4 Earnings: Revenue, EPS Beat On Strong Demand Related To AI, Shares Slide Following Soft Guidance

Adobe Inc ADBE reported fourth-quarter financial results after the market close on Wednesday. Here’s a look at the key metrics from the quarter.

Q4 Earnings: Adobe reported fourth-quarter revenue of $5.61 billion, beating the consensus estimate of $5.54 billion. The company reported fourth-quarter adjusted earnings of $4.81 per share, beating analyst estimates of $4.66 per share.

Adobe has now exceeded analyst estimates in eight consecutive quarters, according to earnings data from Benzinga Pro.

Total revenue was up 11% year-over-year, digital media revenue was up 12% year-over-year and digital experience revenue was up 10% year-over-year.

Remaining performance obligations came in at $19.96 billion, up 16% year-over-year. Cash flows from operations totaled $2.92 billion in the fourth quarter. Adobe noted that it repurchased approximately 4.6 million shares during the period.

“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 of 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.”

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Guidance: Adobe expects first-quarter revenue to be in the range of $5.63 billion to $5.68 billion versus estimates of $5.73 billion. The company anticipates first-quarter adjusted earnings of $4.95 to $5 per share versus estimates of $4.95 per share.

Adobe expects full-year 2025 revenue to be between $23.3 billion and $23.55 billion versus estimates of $23.79 billion. Adobe sees full-year adjusted earnings in the range of $20.20 to $20.50 per share versus estimates of $20.55 per share, according to Benzinga Pro.

Adobe shares appear to be facing selling pressure due to the company’s soft guidance. Management will further discuss the quarter on a call with analysts and investors from 5 p.m. to 6 p.m. ET.

ADBE Price Action: Adobe shares were down approximately 7.5% year-to-date heading into the print. At the time of publication Wednesday, the stock was down 7.63% at $507.99 in after-hours, according to Benzinga Pro.

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