Adobe reported fiscal fourth-quarter results on Wednesday that exceeded market expectations, achieving double-digit revenue growth in both digital media and digital experience sectors. Adjusted earnings per share climbed to $4.81 for the three months ending November 29, an increase from $4.27 in the previous year.
This figure surpassed the consensus estimate of $4.67, highlighting the company's strong performance. Revenue experienced an 11% increase, reaching $5.61 billion, which also exceeded Wall Street's forecast of $5.54 billion. The digital media segment led the charge, with revenue rising 12% to $4.15 billion, fueled by robust sales in document cloud and creative solutions.
Additionally, the digital experience segment saw a 10% revenue uptick, totaling $1.4 billion, with subscriptions contributing a 13% increase. Looking ahead, Adobe anticipates fiscal 2025 adjusted EPS to be between $20.20 and $20.50 and expects revenue to range from $23.3 billion to $23.55 billion. These projections indicate significant annual growth from fiscal 2024's adjusted EPS of $18.42 and revenue of $21.51 billion; however, they fall short of market consensus estimates. Analysts are forecasting non-GAAP EPS of $20.52 for fiscal 2025, alongside projected sales of $23.78 billion.
For the upcoming first quarter, Adobe is predicting adjusted EPS between $4.95 and $5, with revenue expected to range between $5.63 billion and $5.68 billion. The market consensus for these metrics stands at $4.95 and $5.72 billion, respectively. Despite the positive outlook and strong earnings report, shares dropped by 7.3% during after-hours trading..