Adobe Systems (ADBE) shares were down more than 14% in recent Friday trading after a series of price target cuts from investment firms followed the release of its fiscal Q1 results. The company late Thursday reported fiscal Q1 non-GAAP net income of $4.48 per diluted share, up from $3.80 a year earlier. Analysts polled by Capital IQ expected $4.38. Revenue for the quarter ended March 1 was $5.18 billion, up from $4.66 billion a year earlier. Analysts expected $5.15 billion. For Q2, the software company is projecting non-GAAP EPS of $4.35 to $4.40 on revenue of $5.25 billion to $5.30 billion. Analysts polled by Capital IQ are looking for $4.37 and $5.31 billion, respectively. Separately, Adobe said it has authorized the repurchase of up to $25 billion of its shares through mid-March 2028. On Friday, UBS cut its price target on UBS stock to $540 from $600; HSBC cut its

B of A Securities analyst Brad Sills maintains Adobe with a Buy and lowers the price target from $700 to $640.

The following is a summary of the Adobe Inc. (ADBE) Q1 2024 Earnings Call Transcript: Financial Performance: Adobe reported Q1 revenue of $5.18 billion, a 12% increase year-over-year. GAAP earnings per share for the quarter was $1.36, and non-GAAP earnings per share was $4.48, representing 18% year-over-year growth. Adobe achieved a net new Digital Media ARR of $432 million and revenue of $3.82 billion in Q1, marking a 13% growth year-on-year. Adobe achieved $3.07 billion in revenue for Creative Cloud, 12% growth year-over-year with net new Creative Cloud ARR of $289 million. The Experience Cloud business generated subscription revenue of $1.16 billion, representing year-over-year growth of 12%. The company delivered Q1 record revenue of $5.18 billion, representing an 11% YoY growth, achieved Digital Media revenue of $3.82 billion, Digital Experience revenue of $1.29 billion. Business Progress: Adobe continued to focus on creativity for all, document productivity, and powering digital businesses