NASDAQ$ADBE

Adobe Systems Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Adobe's Q3 fiscal year 2023 results were released, demonstrating record revenue and EPS growth.

Adobe achieved record revenue of $4.89 billion in Q3 fiscal year 2023, representing 10% year-over-year growth. The company's EPS grew by over 20% year-over-year, with GAAP EPS at $3.05 and non-GAAP EPS at $4.09.

  • Adobe achieved record Q3 net new Digital Media ARR of $464 million.
  • The company delivered EPS growth exceeding 20 percent year over year.
  • Total revenue reached $4.89 billion, a 10% year-over-year increase.
  • GAAP operating income was $1.70 billion, and GAAP net income was $1.40 billion.

Headline financials

Total Revenue

$4.89B

Previous: $4.43B+10.3%
EPS (adj)

$4.09

Previous: $3.40+20.3%
Digital Media ARR

$14.6B

Previous: $13.4B+9.0%
Remaining Performance Obligations

$15.7B

Previous: $14.1B+11.4%
Capital Expenditures

-$313M

Previous: -$351M+10.8%
Free Cash Flow

$1.09B

Previous: $785M+38.9%
Net Income

$1.4B

Previous: $1.14B+23.5%
Operating Income

$1.7B

Previous: $1.48B+14.4%
Gross Profit

$4.31B

Previous: $3.89B+10.9%
Cash & Equivalents

$6.6B

Previous: $3.87B+70.6%
Total Assets

$29.1B

Previous: $26.7B+8.8%
Stock-Based Comp

$442M

Previous: $378M+16.9%

Revenue & EPS history

Adobe · Revenue · Quarterly

$4.89B

Q3 2023+10.3%vs Q3 2022
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Adobe · $4.82B total across 2 segments · Q3 2023

  • Digital Media
    $3.59B+11.1%
  • Digital Experience
    $1.23B+9.8%

Forward guidance

Adobe provided fourth quarter targets that factor in current macroeconomic conditions and typical year-end seasonal strength.

Tailwinds

  • Total revenue is expected to be between $4.975 billion and $5.025 billion.
  • Digital Media net new ARR is expected to be approximately $520 million.
  • Digital Media segment revenue is projected to be between $3.67 billion and $3.70 billion.
  • Digital Experience segment revenue is anticipated to be between $1.25 billion and $1.27 billion.
  • Non-GAAP EPS is expected to be between $4.10 and $4.15.

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 Q3 2023

Historical avgQ3 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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