Adobe

Adobe Inc (NASDAQ:ADBE) reported first-quarter financial results Thursday after the market close. Here’s a look at the key metrics from the quarter. Q1 Earnings: Adobe’s first-quarter revenue increased 11% year-over-year to $5.18 billion, which beat the consensus estimate of $5.143 billion, according to Benzinga Pro. The company reported quarterly earnings of $4.48 per share, which beat analyst estimates of $4.38 per share. Adobe has now beaten analyst estimates on both the top and bottom line in five straight quarters, according to Benzinga Pro data. Remaining performance obligations were $17.58 billion at the end of the quarter. Cash flows from operations totaled $1.17 billion in the fourth quarter. Adobe said it repurchased approximately 3.1 million shares during the quarter. The company’s board also authorized a new $25 billion stock repurchase program through March 14, 2028. “Adobe drove record Q1 revenue demonstrating strong momentum across Creative Cloud, Document Cloud, and Experience Cloud,” said Shantanu Narayen, […]

By Jon Swartz Software giant also announces $25 billion share-buyback program Adobe Inc.’s stock dipped more than 8% in extended trading Thursday after the company posted robust quarterly results that highlighted its AI push ahead of its annual developers conference. The company also announced a $25 billion share-buyback program. “We’ve done an incredible job harnessing the power of generative AI to deliver groundbreaking innovation across our product portfolio,” Adobe Chief Executive Shantanu Narayen said in a statement announcing the results. Adobe Summit, the company’s annual confab that has sharpened its focus on generative AI, is scheduled for late March in Las Vegas. Adobe (ADBE) reported fiscal first-quarter net income of $620 million, or $1.36 a share, compared with net income of $1.25 billion, or $2.71 a share, in the same quarter a year ago. Adjusted earnings were $4.48 a share. Revenue climbed 11% to $5.18 billion from $4.66 billion in

Adobe Systems (ADBE) 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. Adobe shares were dropping nearly 10% in extended trading Thursday.

By Denny Jacob Adobe is scheduled to report its first-quarter results Thursday after the market closes. Here’s what you need to know. NET INCOME: The software maker is expected to post $1.54 billion in net income, up from $1.25 billion a year earlier, according to FactSet. REVENUE: The San Jose, Calif.-based company is expected to post $5.14 billion in revenue for the quarter ended March 1, compared with $4.66 billion in the prior-year period, according to FactSet. Adobe previously forecast revenue between $5.1 billion and $5.15 billion. ADJUSTED EARNINGS: Stripping out one-time items, earnings are expected to come in at $4.38 a share, according to FactSet. The stock price declined about 6.8% during the quarter and recently traded at $580.39. WHAT TO WATCH — Look for fresh details from Adobe following its scrapped $20 billion bid for collaboration-software company Figma. News of the abandoned deal came a few days after

Adobe Systems’ (ADBE) “underperformance” and adjusted AI expectations for fiscal year 2024 are likely to set the bar lower for Q1, Morgan Stanley said in a note emailed Tuesday. With Adobe shares experiencing a decline of around 10% in the last three months, lagging behind the median large-cap software stock by more than 15%, “investor expectations around Adobe’s Gen AI contribution near-term and competitive positioning long-term have been tempered,” Morgan Stanley said. The trajectory of Adobe’s digital media net new annualized recurring revenue for fiscal year 2024, the level of competition, and the potential of AI within Document Cloud are crucial factors that will likely influence the direction of Adobe shares moving forward, the note said. “Heading into Q1 earnings, we see a lower bar after recent underperformance and management walking down revenue contribution expectations for Gen AI and price increase benefits near-term, coupled with commentary on tough comps from

Piper Sandler analyst Brent Bracelin maintains Adobe (NASDAQ:ADBE) with a Overweight and maintains $705 price target.

Adobe Systems (ADBE) is likely to post “solid” fiscal Q1 results with an upside to digital media annualized recurring revenue, RBC Capital Markets said in a note e-mailed on Monday. The software maker is scheduled to report fiscal Q1 results on Thursday. RBC projects non-GAAP earnings at $4.36 per share on revenue of about $5.13 billion. “While results should be positive, sentiment remains on the drivers of the results, specifically the incremental benefit from GenAI models and runway for future model rollouts particularly video, which has become a growing topic of investor interest following competitive product launches,” RBC analysts, including Matthew Swanson, said. The brokerage maintained its outperform rating on the stock, with a price target of $650.

Adobe Systems (ADBE) should meet or exceed fiscal first-quarter expectations amid digital media upside, though sentiment will likely hinge on the underlying drivers of the results, notably progress with generative artificial intelligence, according to RBC Capital Markets. In a Monday note reiterating an outperform rating and $650 price target on the stock, RBC analysts including Matthew Swanson and Matthew Hedberg said they expect solid results from the cloud-based software company on March 14. The “focus metric” for Adobe is net new annual recurring revenue, which the analysts said has the potential for outperformance in digital media. Management guided NNARR at $410 million, while the consensus is $414.5 million, according to the brokerage’s report. From a seasonality perspective, the guidance puts first-quarter ARR in line with the three-year average. “We’d note the average beat over the past four quarters has been 10%, which would point to $455 million,” Swanson and Hedberg

Adobe Systems (ADBE) is expected to report solid growth and a moderate upside to estimates in fiscal Q1, Oppenheimer said in a note to clients Thursday. The investment firm reiterated Adobe’s outperform rating, with a price target of $660. Adobe will report its fiscal Q1 results on March 14. Oppenheimer estimates revenue of $5.12 billion and pro-forma earnings of $4.37 per share. Analysts surveyed by Capital IQ expect revenue of $5.14 billion and normalized EPS of $4.38. “Our research mosaic points to modest upside to estimates, a stable operating environment, and consistent trends and momentum for Adobe’s business,” Oppenheimer analysts said. Adobe’s net new digital media annual recurring revenue is also expected to show a 7% beat to the fiscal Q1 guidance, according to the note. Rising concerns over competition due to strong product demonstrations by competitors in generative AI imaging and video generation should gradually ease for Adobe as

Exane BNP Paribas analyst Stefan Slowinski downgrades Adobe from Neutral to Underperform and announces $499 price target.

Adobe (NASDAQ:ADBE) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/18/2024 -15.85% Exane BNP Paribas → $499 Downgrades Neutral → Underperform 01/02/2024 18.89% Piper Sandler $650 → $705 Maintains Overweight 12/18/2023 18.04% Barclays $680 → $700 Upgrades Equal-Weight → Overweight 12/14/2023 9.61% Piper Sandler → $650 Reiterates Overweight → Overweight 12/14/2023 3.71% RBC Capital → $615 Reiterates Outperform → Outperform 12/14/2023 5.4% Stifel $600 → $625 Maintains Buy 12/12/2023 13.83% Citigroup $610 → $675 Maintains Neutral 12/08/2023 16.36% BMO Capital $670 → $690 Maintains Outperform 12/04/2023 23.1% KGI Securities → $730 Upgrades Neutral → Outperform 11/10/2023 12.98% BMO Capital $645 → $670 Maintains Outperform 11/09/2023 9.61% Piper Sandler → $650 Reiterates Overweight → Overweight 10/26/2023 11.3% Oppenheimer → $660 Upgrades Perform → Outperform 10/26/2023 7.93% DA Davidson $500 → $640 Upgrades Neutral → Buy 10/11/2023 1.18% Stifel → $600 Reiterates Buy →

By Eric J. Savitz After software stocks’ broad rally in 2023, it’s time for investors to get pickier. The sector roared 58% higher last year — as measured by the closely watched i Shares Expanded Tech-Software Sector exchange-traded fund — driven by the mania over generative artificial intelligence, cost cuts, and hopes for lower interest rates. Of course, some of those trends are still in place: The AI trend is really just starting, and companies continue to trim staff and look for ways to improve profitability. But uneven demand conditions and the unclear timing of AI’s boost to profits mean the sector’s performance could be a bit more mixed in 2024. “Software stocks are no more expensive than a year ago, thanks to the ‘year of efficiency’ and new GenAI growth opportunities,” BNP Paribas analyst Stefan Slowinski wrote Thursday, in a long report on the software industry’s outlook. “The bad