"We are pleased to raise our annual Digital Media net new ARR target… driving strong usage, value, and demand for our AI solutions across all customer segments."
— Shantanu Narayen
03Detailed Report
ADBE
Adobe Inc
Period
Q2 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 17, 2026
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Executive Summary
In Q2 2024, Adobe Inc reported robust financial results, achieving a revenue of $5.31 billion, reflecting an 11% year-over-year growth. This performance was bolstered by growth across its Digital Media, Document Cloud, and Experience Cloud segments, with management highlighting a strong demand for AI-integrated products. The net income reached $1.57 billion with an impressive GAAP EPS of $3.49, indicating significant growth both on a year-over-year and sequential basis. CEO Shantanu Narayen emphasized that the company's innovative product roadmap focused on generative AI is pivotal to attracting new users and enhancing productivity across all customer segments, from individuals to enterprises.
### Financial Highlights
The increase in revenue was driven by a 12% growth in Digital Media revenue, which totaled $3.91 billion. The Document Cloud segment achieved a record revenue of $782 million, showing a 19% growth, indicating strong demand for Acrobat applications and the newly launched AI Assistant. Furthermore, management reported successful integration of AI across products, enhancing customer engagement and subscription renewals.
The overall operating cash flow for the quarter stood at $1.94 billion, reflecting strong cash generation capacity, crucial for funding ongoing innovations and potential share repurchases.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
5.31B
8.57%
2.45%
Gross Profit
4.67B
8.33%
2.62%
Operating Income
1.89B
11.08%
-1.15%
Net Income
1.57B
12.12%
153.71%
EPS
3.50
14.01%
155.47%
Key Financial Ratios
Gross Profit Margin
Excellent
87.90%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Excellent
35.50%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
29.60%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
5.24%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
10.60%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.16
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Moderate
0.41
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Growth
31.74x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
13.45x
Very high premium suggests asset-light business model or lofty expectations
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