Adobe reported record revenue for its fourth quarter of fiscal year 2024, reaching $5.61 billion, an 11% increase year-over-year, surpassing analyst estimates of $5.54 billion. The company also exceeded expectations for non-GAAP diluted earnings per share, which came in at $4.81 against an estimated $4.66. For the full fiscal year 2024, Adobe achieved record revenue of $21.51 billion.
Despite the strong Q4 performance, Adobe's financial targets for fiscal year 2025 fell below Wall Street expectations. The company forecast total revenue between $23.30 billion and $23.55 billion, lower than the anticipated $23.78 billion. First quarter fiscal year 2025 revenue guidance of $5.63 billion to $5.68 billion also missed analyst estimates of $5.73 billion.
This cautious outlook for 2025, particularly the implied revenue growth of approximately 9%, triggered investor concerns regarding the pace of monetization for Adobe's significant investments in artificial intelligence. Analysts noted that the returns from AI integration into its software applications might take longer than initially expected, leading to a negative market reaction despite the Q4 beats.
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