NASDAQ$ADBE

Adobe Systems Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Adobe's Q2 2023 revenue reached a record high, demonstrating strong demand across Creative Cloud, Document Cloud, and Experience Cloud.

Adobe reported record revenue in Q2 fiscal year 2023, driven by strong performance across its Digital Media and Digital Experience segments. The company raised its annual targets for revenue, EPS, and Digital Media net new ARR.

  • Adobe achieved revenue of $4.82 billion, a 10% year-over-year growth.
  • GAAP diluted earnings per share was $2.82, and non-GAAP diluted earnings per share was $3.91.
  • Net new Digital Media ARR was $470 million, with Digital Media ARR exiting the quarter at $14.14 billion.
  • Adobe is providing third quarter targets and updated fiscal year 2023 targets.

Headline financials

Total Revenue

$4.82B

Previous: $4.39B+9.8%
EPS (adj)

$3.91

Previous: $3.35+16.7%
Digital Media ARR

$14.1B

Previous: $13B+9.2%
Remaining Performance Obligations

$15.2B

Previous: $13.8B+10.1%
Capital Expenditures

-$222M

Previous: -$226M+1.8%
Free Cash Flow

$1.07B

Previous: $952M+12.7%
Net Income

$1.3B

Previous: $1.18B+9.9%
Operating Income

$1.62B

Previous: $1.53B+6.2%
Gross Profit

$4.24B

Previous: $3.85B+10.3%
Cash & Equivalents

$5.46B

Previous: $3.37B+62.1%
Total Assets

$27.8B

Previous: $26.3B+5.7%
Stock-Based Comp

$433M

Previous: $352M+23.0%

Revenue & EPS history

Adobe · Revenue · Quarterly

$4.82B

Q2 2023+9.8%vs Q2 2022
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Adobe · $4.73B total across 2 segments · Q2 2023

  • Digital Media
    $3.51B+9.7%
  • Digital Experience
    $1.22B+10.9%

Forward guidance

Adobe is providing third quarter targets and updated fiscal year 2023 targets, factoring in current expectations for the macroeconomic environment and summer seasonality.

Tailwinds

  • Total revenue is expected to be between $4.83 billion and $4.87 billion for Q3 2023.
  • Digital Media net new ARR is expected to be approximately $410 million for Q3 2023.
  • Digital Media segment revenue is projected to be between $3.55 billion and $3.57 billion for Q3 2023.
  • Digital Experience segment revenue is expected to range from $1.21 billion to $1.23 billion for Q3 2023.
  • Non-GAAP EPS is expected to be between $3.95 and $4.00 for Q3 2023.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.5%

Avg return

Earnings day

-1.7%

Avg return

5 days after

-0.3%

Avg return

30 days after

43%

32 / 74 earnings

Positive

+14.2%

Q2 2024

Best reaction

-19.4%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-1.2%-4.6%
Q1 2026-0.1%-8.8%-16.5%
Q4 2025+1.6%+1.4%-2.7%
Q3 2025-3.4%+3.3%-3.7%
Q2 2025-0.8%-0.3%-5.0%
Q1 2025-13.9%-10.8%-19.6%
Q4 2024-13.2%-15.6%-25.8%
Q3 2024-7.5%-11.3%-14.6%
Q2 2024+14.2%+13.6%+21.6%
Q1 2024-14.1%-9.1%-17.3%
Q4 2023-7.7%-5.4%-5.9%
Q3 2023-4.5%-2.1%-0.9%
Q2 2023+3.3%+1.3%+7.4%
Q1 2023+6.0%+8.9%+13.8%
Q4 2022-0.4%-0.5%+1.3%
Q3 2022-19.4%-21.7%-22.5%
Q2 2022-4.3%-3.7%+0.8%
Q1 2022-6.8%-4.8%-8.0%
Q4 2021-11.7%-11.6%-17.4%
Q3 2021-2.4%-2.9%-0.4%
Q2 2021+4.1%+6.0%+11.6%
Q1 2021-0.2%+3.7%+12.1%
Q4 2020-1.6%-0.2%+0.3%
Q3 2020-2.0%-3.8%+3.1%
Q2 2020-0.1%+1.2%+14.6%
Q1 2020+6.4%-1.1%+1.1%
Q4 2019+4.7%+6.3%+11.9%
Q3 2019-1.1%-1.8%-4.8%
Q2 2019+5.7%+8.6%+12.5%
Q1 2019-2.8%-1.5%+2.8%
Q4 2018-6.3%-7.9%-3.3%
Q3 2018+2.6%+1.1%-7.1%
Q2 2018-1.7%-1.7%+1.0%
Q1 2018+3.3%+5.2%+2.6%
Q4 2017+0.4%-1.1%+10.3%
Q3 2017-3.7%-4.7%+10.2%
Q2 2017+2.8%+3.6%+6.8%
Q1 2017+4.0%+2.4%+5.7%
Q4 2016-2.1%-0.0%+2.6%
Q3 2016+8.1%+7.8%+9.4%
Q2 2016-4.1%-5.9%-1.7%
Q1 2016+6.0%
Q4 2015+2.1%
Q3 2015+0.9%
Q2 2015-1.3%
Q1 2015-1.8%
Q4 2014+8.8%
Q3 2014-4.2%
Q2 2014+8.1%
Q1 2014-0.8%
Q4 2013+11.4%
Q3 2013+9.2%
Q2 2013+5.5%
Q1 2013+3.4%
Q4 2012+4.5%
Q3 2012+6.0%
Q2 2012-2.0%
Q1 2012-2.0%
Q4 2011-0.9%
Q3 2011+1.7%
Q2 2011+2.1%
Q1 2011-0.9%
Q4 2007-3.1%
Q4 2010-3.1%
Q3 2010-5.0%
Q2 2010-5.6%
Q1 2010+0.2%
Q1 2009+0.2%
Q4 2009-4.6%
Q3 2009-2.1%
Q3 2008-2.1%
Q2 2008+0.4%
Q2 2009+0.4%
Q4 2008+0.4%

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