For the quarter ended February 2025, Adobe Systems (ADBE) reported revenue of $5.71 billion, up 10.3% over the same period last year. EPS came in at $5.08, compared to $4.48 in the year-ago quarter.
The reported revenue represents a surprise of +1.06% over the Zacks Consensus Estimate of $5.65 billion. With the consensus EPS estimate being $4.97, the EPS surprise was +2.21%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Adobe performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Business Unit - Digital Media - Total Digital Media ARR (Annual): $17.63 billion versus the four-analyst average estimate of $17.49 billion.
- Revenue- Publishing and Advertising: $70 million versus the seven-analyst average estimate of $68.89 million. The reported number represents a year-over-year change of -9.1%.
- Revenue- Digital Media: $4.23 billion versus $4.18 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +10.9% change.
- Revenue- Digital Experience: $1.41 billion versus the seven-analyst average estimate of $1.40 billion. The reported number represents a year-over-year change of +9.4%.
- Revenue- Services and other: $136 million versus $142.32 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -7.5% change.
- Revenue- Subscription: $5.48 billion versus $5.40 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +11.5% change.
- Revenue- Products: $95 million compared to the $111.76 million average estimate based on four analysts. The reported number represents a change of -20.2% year over year.
- Digital Experience Subscription Revenue: $1.30 billion versus $1.29 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +11.7% change.
Shares of Adobe have returned -5.5% over the past month versus the Zacks S&P 500 composite's -8.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
