Adobe Q4 2024 Earnings: Analysts Predict Strong Finish Amid AI Hopes

Adobe (NASDAQ:ADBE) will release its fourth-quarter 2024 earnings after the bell today. Wall Street expects higher revenue and profit as the company wraps up a volatile year.

Analysts remain upbeat on Adobe's stock. Of the 15 analysts tracked by Visible Alpha, 11 have "buy" ratings, 3 have "hold" ratings, and 1 rates it a "sell." The average price target of $619 implies a 12% upside from Friday’s close of $555.76. This suggests that many believe Adobe could rebound and end 2024 on a high note.

A Year of Big Swings

For Q4, analysts forecast $5.54 billion in revenue and $1.63 billion in net income. Both figures are about 10% higher than the same period last year.

Adobe’s stock has seen wild moves after each earnings report this year. Shares fell 13% after Q1 and dropped 8% after Q3. However, they jumped 14.5% following the Q2 report.

Despite beating estimates in all three prior quarters, the stock still fell twice. Why? Investors were disappointed by Adobe's cautious outlook for future quarters, especially in Q1 and Q3.

AI Products Could Be a Wild Card

Some analysts believe Adobe's Q4 guidance may have been too conservative. They point to growth potential from Adobe’s AI products, which could boost earnings heading into 2025.

Currently, Adobe's stock is down 7.3% for the year, trading near $555.76 as of Monday morning. Investors will be watching to see if Q4 results—and any AI-related updates—can spark a turnaround.

With expectations for higher revenue, profits, and the potential AI boost, Adobe's upcoming report could be a pivotal moment for the stock.