Adobe Inc

Adobe Inc

ADBE

Market Cap$163.32B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Adobe IncAdobe Inc24.7-52%7.90.6

Earnings Call Q1 2025

March 12, 2025 - AI Summary

Strong Q1 Performance: Adobe reported $5.71 billion in revenue for Q1 FY 2025, showing an 11% year-over-year growth. GAAP earnings per share (EPS) was $4.14, while non-GAAP EPS reached $5.08, reflecting a 13% year-over-year increase. The solid financial results highlight Adobe’s position as a leader in the digital economy.
Digital Media Growth: Digital Media revenue was $4.23 billion, with an ending ARR (Annual Recurring Revenue) of $17.63 billion, marking 12.6% year-over-year growth. Strong demand was observed across Creative Cloud and Document Cloud products, with significant contributions from new offerings like Firefly Services and increased user adoption across both web and mobile platforms.
AI Initiatives and Monetization: Adobe’s AI book of business is estimated at $125 million exiting Q1, with expectations to double this figure by the end of FY 2025. The company focuses on integrating generative AI across its suite of products to drive higher engagement and value, which is expected to enhance subscription retention and enable new revenue streams.

Exclusive for Stockcircle Pro members

Sign upSign Up
$500.00

Target Price by Analysts

25.8% upsideAdobe Target Price DetailsTarget Price
$423.19

Current Fair Value

6.5% upside

Undervalued by 6.5% based on the discounted cash flow analysis.

Share Statistics

Market cap$163.32 Billion
Enterprise Value$163.78 Billion
Dividend Yield$0 (0%)
Earnings per Share$12.44
Beta1.55
Outstanding Shares436,000,000

Return

Return on Equity-
Return on Assets-
Return on Invested Capital-

Valuation & Multiples

P/E Ratio24.75
PEG12.88
Price to Sales7.95
Price to Book Ratio13.25
Enterprise Value to Revenue7.43
Enterprise Value to EBIT20.48
Enterprise Value to Net Income24
Total Debt to Enterprise0.04
Debt to Equity0.55

Revenue Sources

No data

Insider Trades

ESG Score

No data

About Adobe Inc

CEO: Shantanu Narayen