Will Higher Digital Media Revenues Aid Adobe Stock in Q4 Earnings?

Adobe’s ADBE fourth-quarter fiscal 2025 results, set to be reported on Dec. 10, are expected to reflect the benefits of higher Digital Media revenues.Adobe expects fourth-quarter fiscal 2025 Digital Media segment revenues between $4.53 billion and $4.56 billion. The Digital Experience segment’s revenues are expected to be $1.495-$1.515 billion, with Digital Experience subscription revenues anticipated between $1.395 billion and $1.410 billion.The Zacks Consensus Estimate for Adobe’s fiscal fourth-quarter Digital Media revenues is pegged at $4.41 billion, indicating year-over-year growth of 8.2%. The consensus mark for Digital Experience revenues is pegged at $1.402 billion, indicating a 10.8% year-over-year rise. The Zacks Consensus Estimate for Subscription revenues is currently pegged at $5.9 billion, indicating 10% year-over-year growth.Adobe’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 2.54%. Adobe Inc. Revenue (TTM)  Adobe Inc. revenue-ttm | Adobe Inc. QuoteClick here to learn how Adobe’s overall fiscal fourth-quarter performance is likely to have been.AI Push to Boost Adobe’s Digital Media RevenuesAdobe’s fiscal fourth-quarter Digital Media revenues are expected to have benefited from strong demand for AI-infused offerings, including Creative Cloud Pro and Acrobat, as well as AI-first products, including Firefly and Acrobat AI Assistant.Digital Media revenues are expected to have benefited from strong use and monetization of Acrobat offerings, including AI assistant and Adobe’s newly launched Acrobat Studio. Increasing demand and usage of AI innovation in Adobe’s flagship applications like Photoshop, Premiere Pro and Illustrator as part of the new Creative Cloud Pro offering is noteworthy.Adobe Suffers From Stiff Competition in the AI SpaceADBE’s AI business is minuscule compared with the likes of Microsoft MSFT, Alphabet GOOGL and Salesforce CRM. Microsoft’s Intelligent Cloud revenues are benefiting from growth in Azure AI services and a rise in the AI Copilot business. Alphabet’s focus on infusing AI heavily across its offerings, including Search and Google Cloud, has been a major growth driver. Salesforce’s strategy of continuous expansion of Gen AI offerings is helping it tap growth opportunities.Adobe shares have underperformed Microsoft, Alphabet and Salesforce in the past year. While ADBE shares have dropped 38.1%, Alphabet and Microsoft shares have appreciated 78.9% and 10.1%, respectively. Salesforce shares have declined 26.2% over the past year.Zacks Rank Adobe currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microsoft Corporation (MSFT): Free Stock Analysis Report Salesforce Inc. (CRM): Free Stock Analysis Report Adobe Inc. (ADBE): Free Stock Analysis Report Alphabet Inc. (GOOGL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks