Adobe shares climbed +6% in after-hours trading on Thursday, after the software giant announced its fiscal fourth-quarter earnings that surpassed analysts’ expectations. The company also provided a better-than-expected outlook.
Adjusted earnings for the quarter ending Dec. 2 came in at $3.60 per share, beating the $3.50 per share expected by analysts.
Revenue grew +10% from the year-ago quarter to $4.53 billion, vs. $4.53 billion expected by the Street.
Adobe’s Digital Media segment, which includes Creative Cloud design software subscriptions, generated $3.30 billion in revenue, falling shy of the StreetAccount consensus of $3.31 billion (as reported in CNBC). The Digital Experience business, which includes Adobe’s marketing software, garnered $1.15 billion in revenue, topping the $1.14 billion StreetAccount consensus (as reported in CNBC).
For the fiscal first quarter, Adobe is expecting adjusted earnings of $3.65 to $3.70 per share, compared to analysts’ forecast of $3.64 per share. The company has projected revenue in the range of on $4.60 billion to $4.64 billion, vs. analysts’ expectations of $4.64 billion. (The forecasts don’t include impact from the Figma deal. Adobe said, during the quarter, that it would acquire design software startup Figma for about $20 billion).
Looking further ahead, Adobe projects full-year earnings of $15.15 to $15.45 a share on revenue of $19.1 billion to $19.3 billion, while analysts polled by FactSet expected $15.33 a share on revenue of $19.35 billion. The company expects new Digital Media ARR of about $1.65 billion versus the Street expectations of $1.75 billion.
ADBE saw its Momentum Indicator move below the 0 level on June 13, 2025. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 81 similar instances where the indicator turned negative. In of the 81 cases, the stock moved further down in the following days. The odds of a decline are at .
The Moving Average Convergence Divergence Histogram (MACD) for ADBE turned negative on June 02, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 39 similar instances when the indicator turned negative. In of the 39 cases the stock turned lower in the days that followed. This puts the odds of success at .
ADBE moved below its 50-day moving average on June 17, 2025 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ADBE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ADBE advanced for three days, in of 333 cases, the price rose further within the following month. The odds of a continued upward trend are .
ADBE may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 285 cases where ADBE Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. ADBE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (14.556) is normal, around the industry mean (31.816). P/E Ratio (47.957) is within average values for comparable stocks, (164.257). Projected Growth (PEG Ratio) (1.863) is also within normal values, averaging (2.724). Dividend Yield (0.000) settles around the average of (0.030) among similar stocks. P/S Ratio (11.534) is also within normal values, averaging (61.826).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ADBE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of software solutions for web and print publishing
Industry PackagedSoftware