Adobe Inc
0R2Y.L
$348.12 5.98%
Exchange: LSE | Sector: Technology | Industry: Software Services
Q3 2024
Published: Aug 31, 2024

Earnings Highlights

  • Revenue of $5.41B up 4.4% year-over-year
  • EPS of $3.76 increased by 175.9% from previous year
  • Gross margin of 89.0%
  • Net income of 1.68B
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0R2Y.L
Company 0R2Y.L

Executive Summary

Adobe reported solid Q3 2024 results, underscoring durable demand for its cloud-based software and strong cash-generation capability. Revenue of USD 5.408 billion marked YoY growth of 4.36%, supported by a high gross margin near 89% and an operating margin of approximately 36.8%. Net income reached USD 1.684 billion, with diluted EPS of USD 3.76-3.78, contributing to a robust profitability profile. The company generated USD 2.021 billion in operating cash flow and USD 1.964 billion in free cash flow, while maintaining a strong balance sheet with a net cash position of roughly USD 1.50 billion (cash and equivalents of USD 7.19 billion and total debt of USD 5.70 billion). Notably, management executed a meaningful capital return program, with stock repurchases around USD 2.5 billion, signaling confidence in sustained cash generation. While there is no formal forward guidance in the provided data, the quarter reinforces Adobe’s leadership in Creative Cloud and Digital Experience solutions and its ability to convert revenue growth into substantial free cash flow. Investors should monitor product mix dynamics between Digital Media and Digital Experience, ongoing AI-enabled product development, and macro-driven demand for enterprise software.

Key Performance Indicators

Revenue
Increasing
5.41B
QoQ: 0.00% | YoY: 4.36%
Gross Profit
Increasing
4.81B
88.96% margin
QoQ: 0.89% | YoY: 6.68%
Operating Income
Increasing
1.99B
QoQ: 0.00% | YoY: 4.46%
Net Income
Increasing
1.68B
QoQ: 0.00% | YoY: 171.61%
EPS
Increasing
3.78
QoQ: 0.00% | YoY: 175.91%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q3 2025 5,988.00 4.18 +10.7% View
Q2 2025 5,873.00 3.95 +8.6% View
Q1 2025 5,714.00 4.13 +7.6% View
Q4 2024 5,606.00 3.80 +8.2% View
Q3 2024 5,408.00 3.76 +4.4% View