Adobe (NASDAQ:ADBE) Releases FY 2025 Earnings Guidance

Key Points

• Adobe has issued FY 2025 earnings guidance with EPS expected between 20.800-20.850 and revenue guidance of $23.7 billion, both exceeding consensus estimates.
• The company reported a Q4 2025 EPS guidance of 5.350-5.400 and has seen a year-over-year revenue increase of 10.6%.
• Adobe's stock has a market cap of $148.70 billion and has received mixed ratings from analysts, with an average target price of $444.89.

Adobe (NASDAQ:ADBE - Get Free Report) issued an update on its FY 2025 earnings guidance on Thursday morning. The company provided EPS guidance of 20.800-20.850 for the period, compared to the consensus EPS estimate of 19.120. The company issued revenue guidance of $23.7 billion-$23.7 billion, compared to the consensus revenue estimate of $23.6 billion. Adobe also updated its Q4 2025 guidance to 5.350-5.400 EPS.

Adobe Stock Performance

Shares of ADBE stock traded up $0.39 on Thursday, reaching $350.55. The stock had a trading volume of 10,314,708 shares, compared to its average volume of 3,797,961. Adobe has a 1 year low of $330.04 and a 1 year high of $587.75. The company has a debt-to-equity ratio of 0.54, a quick ratio of 0.99 and a current ratio of 0.99. The company has a 50 day simple moving average of $358.50 and a 200 day simple moving average of $381.10. The stock has a market cap of $148.70 billion, a P/E ratio of 22.43, a price-to-earnings-growth ratio of 1.68 and a beta of 1.48.

Adobe (NASDAQ:ADBE - Get Free Report) last announced its quarterly earnings results on Thursday, June 12th. The software company reported $5.06 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.97 by $0.09. The firm had revenue of $5.87 billion during the quarter, compared to analyst estimates of $5.80 billion. Adobe had a return on equity of 53.68% and a net margin of 30.39%.Adobe's quarterly revenue was up 10.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $4.48 earnings per share. Equities research analysts expect that Adobe will post 16.65 EPS for the current year.

Analyst Upgrades and Downgrades

ADBE has been the topic of a number of recent analyst reports. BMO Capital Markets reiterated an "outperform" rating and issued a $450.00 price objective on shares of Adobe in a report on Friday, June 13th. Wall Street Zen upgraded shares of Adobe from a "hold" rating to a "buy" rating in a research note on Friday, September 5th. Evercore ISI reiterated an "outperform" rating and issued a $475.00 target price on shares of Adobe in a research note on Friday, June 13th. Melius downgraded shares of Adobe from a "hold" rating to a "sell" rating and set a $310.00 price objective for the company. in a report on Monday, August 11th. Finally, DA Davidson reaffirmed a "buy" rating and issued a $500.00 target price on shares of Adobe in a research note on Friday, June 20th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, eight have assigned a Hold rating and three have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $444.89.

Institutional Trading of Adobe

Several hedge funds and other institutional investors have recently bought and sold shares of ADBE. CANADA LIFE ASSURANCE Co raised its position in shares of Adobe by 20.1% in the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 538,156 shares of the software company's stock worth $208,429,000 after acquiring an additional 90,222 shares in the last quarter. Rafferty Asset Management LLC grew its stake in Adobe by 13.4% during the 2nd quarter. Rafferty Asset Management LLC now owns 171,954 shares of the software company's stock worth $66,526,000 after purchasing an additional 20,309 shares in the last quarter. Zuckerman Investment Group LLC acquired a new position in Adobe during the 2nd quarter worth approximately $6,864,000. Tidal Investments LLC increased its stake in Adobe by 30.9% in the second quarter. Tidal Investments LLC now owns 75,072 shares of the software company's stock valued at $29,044,000 after purchasing an additional 17,734 shares during the last quarter. Finally, Oxford Asset Management LLP acquired a new position in Adobe in the second quarter valued at $5,854,000. Hedge funds and other institutional investors own 81.79% of the company's stock.

Adobe Company Profile

Adobe Inc, together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform.

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