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Compared to Estimates, Adobe (ADBE) Q1 Earnings: A Look at Key Metrics
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For the quarter ended February 2025, Adobe Systems (ADBE - Free Report) 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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Compared to Estimates, Adobe (ADBE) Q1 Earnings: A Look at Key Metrics
For the quarter ended February 2025, Adobe Systems (ADBE - Free Report) 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.
View all Key Company Metrics for Adobe here>>>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.