Adobe Q1 Earnings: Revenue Beat, EPS Beat, Reaffirmed FY Guidance And More

Adobe Inc ADBE announced first-quarter financial results Wednesday after the bell. Here’s a rundown of the report.

Q1 Earnings: Adobe reported first-quarter revenue of $5.71 billion, beating the consensus estimate of $5.66 billion. The company reported first-quarter adjusted earnings of $5.08 per share, beating analyst estimates of $4.97 per share, according to Benzinga Pro.

Total revenue was up 10% year-over-year. Broken down by segment, digital media revenue was up 11% year-over-year and digital experience revenue climbed 10% year-over-year.

Remaining performance obligations came in at $19.69 billion and cash flows from operations totaled $2.48 billion in the first quarter.

Adobe noted it repurchased approximately seven million shares during the period. The company ended the quarter with $6.76 billion in cash and cash equivalents.

“Adobe’s success over the next decade will be driven by customer-focused innovation and new offerings for creators, marketing professionals, business professionals and consumers,” said Shantanu Narayen, chair and CEO of Adobe.

“Adobe is well-positioned to capitalize on the acceleration of the creative economy driven by AI and we are reaffirming our FY2025 financial targets.”

See Also: Tesla To $120? Here Are 10 Top Analyst Forecasts For Wednesday

Outlook: Adobe expects second-quarter revenue of $5.77 billion to $5.82 billion versus estimates of $5.8 billion. The company anticipates second-quarter adjusted earnings of $4.95 to $5 per share versus estimates of $5 per share.

Adobe reaffirmed expectations for full-year 2025 revenue between $23.3 billion and $23.55 billion versus estimates of $23.5 billion. Adobe sees full-year adjusted earnings in the range of $20.20 to $20.50 per share versus estimates of $20.40 per share.

Adobe noted it will host an Investor Meeting on March 18 at the Adobe Summit to provide updates on its strategy and roadmap.

Adobe executives will further discuss the quarter on a call with investors and analysts from 5 p.m. to 6 p.m. ET.

ADBE Price Action: Adobe shares were down 3.33% after-hours, trading at $438.60 at the time of publication on Wednesday, according to Benzinga Pro.

Photo: Shutterstock.