Adobe Q4 results, guidance ‘better than feared,’ says Oppenheimer

Oppenheimer analyst Brian Schwartz maintains a Perform rating on Adobe following the company’s Q4 earnings report, which the analyst called "better than feared," showing "better execution." Adobe’s net-new Digital Media ARR Q4 result and Q1 target beat consensus estimates, and management issued strong commentary on Adobe Express and the overall business trends. However, Adobe’s outlook implies sub-10% Digital Media revenue growth from negative FX, without a noticeable improvement to the operating margin, which is "unlikely to entice new investors to the name," Schwartz believes.