Adobe

• Revenue: $5.61 billion, up 11% year-over-year, exceeding estimates of $5.54 billion.

• Net Income: Not disclosed in detail.

• Gross Margin: Not disclosed, but Adobe typically maintains margins around 85%.

• EPS (Earnings Per Share): $4.81 (adjusted), beating analyst expectations of $4.67.

• Free Cash Flow: Not specified in this report.

💰 Valuation Analysis

• P/E Ratio: Approximately 33x, reflecting a premium for growth.

• P/S Ratio: ~15x, indicating high market valuation relative to sales.

• Forward P/E: ~27x, implying expectations of steady earnings growth.

• PEG Ratio: Not disclosed but likely >2, given competitive pressure and moderate growth.

• Market Cap: $248.8 billion, classifying it as a large-cap stock.

📈 Growth Metrics

• 2025 Revenue Growth Forecast: 9-11%, with projected revenue between $23.3 billion and $23.6 billion.

• EPS Growth Forecast: Expected in the range of $20.20 to $20.50, slightly below consensus estimates of $20.52.

• Digital Media Growth: Up 12% YoY to $4.2 billion in Q4, driven by Creative Cloud and Document Cloud subscriptions.

🔍 Revenue Breakdown

1. Digital Media (75%): $4.2 billion (+12% YoY)
• Strength in Creative Cloud and Document Cloud drove growth.

2. Digital Experience (25%): $1.2 billion (+10% YoY)
• Solid demand for customer analytics and marketing solutions.

🔮 Forecast

Final Summary

• 🚀 Strengths: Solid financial performance with strong subscription revenue growth and robust EPS.

• 📊 Concerns: Below-expectation revenue and EPS forecasts for fiscal 2025, coupled with slow AI monetization.

• 💡 Valuation Caution: While Adobe remains a high-quality stock, its premium valuation may limit upside in the short term.

• ⚠️ Risks: Competition in AI and cloud-based creative tools could challenge growth momentum.