In One Chart | Adobe Profit Breakdown 2024Q3

Adobe Systems Incorporated -0.58%

Adobe Systems Incorporated

ADBE

260.88

-0.58%

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In its just-concluded fiscal quarter, multimedia and digital content creation software giant Adobe Systems Incorporated(ADBE.US) saw sales growth that continued to meet top expectations. 

However, the company's guidance for the current quarter showed a more pronounced slowdown than Wall Street had anticipated, disappointing investors.

Key Highlights:

  • Q3 Revenue: $5.41 billion, up 11% year-over-year, beating estimates of $5.37 billion
  • Q3 Non-GAAP EPS: $4.65, up 13.7% year-over-year, topping estimates of $4.53
  • Q4 Revenue Guidance: $55.0-$55.5 billion, below the $56.0 billion estimate
  • Q4 EPS Guidance: $4.63-$4.68, versus the $4.68 estimate
  • Q4 Digital Media Net New ARR Guidance: ~$5.5 billion, below the $5.611 billion estimate

The company's CEO cited Adobe's AI-powered innovations in Creative Cloud, Document Cloud and Experience Cloud as driving value for its global user base. 

However, the weaker-than-expected Q4 outlook has shaken investor confidence in the near-term growth prospects boosted by these AI tools.


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