"Adobe's focus on responsible innovation, with customers at the center, continues to be a unifying purpose for the company."
— Shantanu Narayen
03Detailed Report
ADBE
Adobe Inc
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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Executive Summary
In the third quarter of fiscal year 2024, Adobe Inc reported impressive financial results characterized by substantial growth across its Digital Media and Digital Experience segments. The company achieved a revenue of $5.41 billion, marking an 11% increase year-over-year. This performance was supported by a robust net income of $1.68 billion and GAAP earnings per share (EPS) of $3.76, up 23% from the previous year. Management attributed this success to strategic execution across their product lines, bolstered by a strong focus on AI innovations and integrations that are resonating with a broad user base. Notably, Digital Media revenue reached $4 billion, prompted by a significant increase in AI-assisted interactions and innovative product offerings. As Adobe advances its AI capabilities and enhances user experience across its platforms, it continues to strengthen market position and expand opportunities for growth.
Key Performance Indicators
Revenue
Increasing
5.41B
QoQ: 1.86% | YoY: 7.13%
Gross Profit
Increasing
4.85B
89.80% margin
QoQ: 3.96% | YoY: 9.97%
Operating Income
Increasing
1.99B
QoQ: 5.68% | YoY: 14.29%
Net Income
Increasing
1.68B
QoQ: 7.06% | YoY: 13.55%
EPS
Increasing
3.78
QoQ: 8.00% | YoY: 15.95%
Revenue Trend
Margin Analysis
Financial Highlights
Financial Overview:
- Total Revenue: $5.41 billion (up 11% YoY)
- Net Income: $1.68 billion (up 13.55% YoY)
- GAAP EPS: $3.76 (up 23% YoY)
- Digital Media Revenue: $4 billion (up 12% YoY)
- Digital Experience Revenue: $1.35 billion (up 10% YoY)
Cash Flow:
- Cash Flow from Operations: $2.02 billion
- Free Cash Flow: $1.96 billion
- Cash at End of Period: $7.19 billion
Growth Drivers:
- Continued increase in net new Digital Media Annual Recurring Revenue (ARR) of $504 million.
- Strong performance of Acrobat and Creative Cloud products driven by AI features.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
5.41B
7.13%
1.86%
Gross Profit
4.85B
9.97%
3.96%
Operating Income
1.99B
14.29%
5.68%
Net Income
1.68B
13.55%
7.06%
EPS
3.78
15.95%
8.00%
Key Financial Ratios
Gross Profit Margin
Excellent
89.80%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Excellent
36.80%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
31.10%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
5.65%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
11.60%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.11
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Moderate
0.42
Debt-to-equity indicates balanced capital structure with manageable debt
P/E Ratio
Growth
37.95x
Elevated P/E suggests growth expectations or premium valuation
Price to Book
High Premium
17.57x
Very high premium suggests asset-light business model or lofty expectations
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