Adobe Q3 Results: Robust AI-Powered Automation demand drives Adobe profits

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Adobe Q2 Result

Adobe Q3 Results: Key insights

  1. Adobe expects revenue for the fourth quarter of FY23 between of $4.975 billion to $5.025 billion, much higher than industry expectations.
  2. The firm has shown an increase in EPS by over 20 percent each year.
  3. Operational cash flows amounted to $1.87 billion.

Adobe share price and Adobe results:

Adobe shares decreased 0.25% in early trading on September 15, 2023, on the quarterly results. Adobe shares have gained about 65% over the past six months along with most technology-related stocks over a positive development in AI-related products and services.

Adobe shares historical performance:

1 Day1 Month1 Year5 Year
- 0.25%6.45%78.62%111.65%

Adobe Revenue

Q3FY23Q3FY22% Change
4.89 billion4.33 billion12.93%
  • Adobe's revenue rose by 12.93% to 4.89 billion.
  • Adobe forecasted current-quarter revenue in the range of $4.83 billion to $ 4.87 billion.
  • America - Accenture's biggest market - also performed well in the July to September period, with revenue growth of about 13.19% to 2.94 billion.

Adobe Net Profit

Q3FY23Q3FY22% Change
1.40 billion1.13 billion23.89%

In Adobe's third quarter, it reported a profit of $1.40 billion, compared with a profit of $1.13 billion, or in the same period a year earlier on account of strong operating revenue.

Adobe share repurchase

Adobe repurchased approximately 2.1 million shares during the quarter.

Adobe share price target

  • Renowned BMO Capital believes generative AI will boost Adobe's yearly revenue. Foresees 10-15% price hikes and expects user growth in all categories.
  • Renowned brokerage Bachman has a ‘buy’ rating on the firm with a share price target of $640.
  • Renowned brokerage Jefferies has a ‘buy’ rating on the firm with a share price target of $660.