Adobe ADBE is set to report its first-quarter fiscal 2025 results on March 12.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
For first-quarter fiscal 2025, Adobe projects total revenues between $5.63 billion and $5.68 billion. The company expects non-GAAP earnings between $4.95 per share and $5 per share.
The Zacks Consensus Estimate for revenues is pegged at $5.65 billion, suggesting growth of 9.11% from the year-ago quarter’s reported figure. The consensus mark for earnings has been unchanged at $4.97 per share over the past 30 days, indicating 10.94% growth from the figure reported in the year-ago quarter.
ADBE’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average earnings surprise being 2.59%.
Adobe Inc. price-eps-surprise | Adobe Inc. Quote
Let us see how things have shaped up for ADBE shares prior to this announcement.
For the first quarter of fiscal 2025, Adobe expects Digital Media segment revenues between $4.17 billion and $4.2 billion.
The Zacks Consensus Estimate for Digital Media segment revenues is pegged at $4.18 billion, suggesting a 9.6% year-over-year growth. The consensus estimate for Creative Cloud revenues stands at $3.33 billion, indicating 8.5% year-over-year growth. Document Cloud’s consensus estimate for revenues is pegged at $855 million, implying 14% growth from the year-ago quarter’s reported figure.
Digital Experience segment revenues are anticipated to be $1.38-$1.40 billion. Experience Subscription revenues are expected to be $1.27-$1.29 billion.
The consensus mark for Digital Experience revenues is pegged at $1.40 billion, indicating 8.5% year-over-year growth. The Zacks Consensus Estimate for Digital Experience subscription revenues is pegged at $1.29 billion, indicating 10.8% year-over-year growth.
Adobe’s strong Generative AI (GenAI) portfolio and a rich partner base, which includes the likes of Amazon AMZN, Microsoft MSFT and Alphabet GOOGL, are expected to have driven its top-line growth in the fiscal first quarter.
Adobe expanded its GenAI portfolio with the launch of Firefly Image Model 3, enhancements to vector models, richer design models and the all-new Firefly video model. The deep integration of these models into Adobe’s tools, such as Lightroom, Photoshop, Premiere, InDesign and Express, has improved the experiences for creative professionals globally. Firefly generations now have crossed 16 billion cumulative generations.
Strong Adobe Express adoption by businesses is noteworthy. The increasing number of integrations into leading social, productivity and collaboration apps like ChatGPT, Google, Slack, Wix, Box, Hubspot and Webflow significantly increases Adobe Express’ customer reach.
Adobe’s Document Cloud AI Assistant is now available in Acrobat across desktop, web and mobile, and integrated into Chrome, Microsoft Teams and Edge extensions. Adobe GenStudio, which integrates Express, Firefly, Workfront, Experience Manager, Customer Journey Analytics and Journey Optimizer, is riding on strong adoption in the content supply chain for enterprises.
These factors are expected to have driven first-quarter fiscal 2025 results amid stiff competition and the sluggish monetization rate of Adobe’s GenAI solutions.
