"We're incredibly well-positioned to lead and capitalize on this opportunity. Thanks to our innovative roadmap, expanding global customer base, strong brand, and the best employees in the world." - Shantanu Narayen, CEO
— Shantanu Narayen
03Detailed Report
ADBE
Adobe Inc
Period
Q4 2023
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 14, 2026
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Executive Summary
In Q4 2023, Adobe Inc achieved unprecedented revenue of $5.05 billion, marking the first time the company surpassed the $5 billion threshold in a single quarter. This performance reflects a 13% year-over-year growth, underpinned by solid advancements in both the Digital Media and Digital Experience segments. Notably, management emphasized the crucial role that Adobe's suite of products has played in the modern digital landscape, particularly through innovations such as generative AI and strategic expansion efforts. The company completed the fiscal year with total revenues of $19.41 billion, achieving a notable annual growth rate of 13%. With a strong outlook backed by substantial recurring revenue and robust cash flow generation, Adobe is well-positioned to capitalize on the accelerating demand for digital solutions in a technology-driven ecosystem.
Key Performance Indicators
Revenue
Increasing
5.05B
QoQ: 0.00% | YoY: 4.82%
Gross Profit
Increasing
4.41B
87.44% margin
QoQ: 0.00% | YoY: 4.01%
Operating Income
Increasing
1.74B
QoQ: 0.00% | YoY: 7.33%
Net Income
Increasing
1.48B
QoQ: 0.00% | YoY: 14.52%
EPS
Increasing
3.26
QoQ: 0.00% | YoY: 15.19%
Revenue Trend
Margin Analysis
Financial Highlights
Adobe's financial metrics portray a healthy performance as of Q4 2023:
- Revenue: $5.05 billion (up 13% YoY)
- Net Income: $1.43 billion (up 14.52% YoY)
- GAAP EPS: $3.23 (28% YoY growth)
- Non-GAAP EPS: $4.27 (19% YoY growth)
- Operating Cash Flow: $1.6 billion
- Free Cash Flow: $1.55 billion
- RPO (Remaining Performance Obligations): $17.22 billion (growing 13% YoY)
Management attributed these results to continuous product innovation, especially in the Digital Media segment, which saw revenue of $3.72 billion (14% YoY growth).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
5.05B
4.82%
0.00%
Gross Profit
4.41B
4.01%
0.00%
Operating Income
1.74B
7.33%
0.00%
Net Income
1.48B
14.52%
0.00%
EPS
3.26
15.19%
0.00%
Key Financial Ratios
Gross Profit Margin
Excellent
87.40%
Gross profit margin is exceptional, indicating strong pricing power and operational efficiency
Operating Profit Margin
Excellent
34.50%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
29.40%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
4.98%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
8.98%
Return on equity is acceptable but below top-tier companies
Current Ratio
Adequate
1.34
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Conservative
0.25
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
High Growth
46.87x
Very high P/E indicates aggressive growth expectations, higher risk
Price to Book
High Premium
16.83x
Very high premium suggests asset-light business model or lofty expectations
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