Can ADBE sustain its EPS growth trend into 2025?

**Adobe's EPS growth trend into 2025 appears promising**, considering both historical performance and current outlook indicators. Here's an analysis to support this conclusion:

1. **Consistent Historical Performance**: Adobe's EPS has shown a consistent upward trend over the past five years, with diluted EPS increasing from $10.02 in 2021Q4 to $12.36 in 2024Q4. This indicates a strong and sustainable growth trajectory.

|code|Ticker|Name|Date|Diluted EPS (FY) YoY|Diluted EPS (FY)|market_code|
|---|---|---|---|---|---|---|
|ADBE|ADBE.O|Adobe|2020|80.5|10.83|185|
|ADBE|ADBE.O|Adobe|2021|-7.479224376731307|10.02|185|
|ADBE|ADBE.O|Adobe|2022|0.7984031936127752|10.1|185|
|ADBE|ADBE.O|Adobe|2023|17.029702970297038|11.82|185|
|ADBE|ADBE.O|Adobe|2024|4.568527918781719|12.36|185|

2. **Recent Positive Earnings Results**: Adobe reported a 13% increase in adjusted EPS and a 10% rise in adjusted operating profit for Q1 2024-25, reaching $5.08 and $2.72 billion, respectively. Revenues also saw a 10% year-on-year increase, reaching $5.71 billion, with strong contributions from its Digital Media and Digital Experience segments.
3. **Strong Financial Outlook**: For the fiscal year 2025, Adobe projects an EPS range of $20.20 to $20.50, indicating confidence in maintaining high earnings levels. Revenue guidance is set at $23.3 billion to $23.55 billion, suggesting continued growth momentum.
4. **Analyst Confidence**: The consensus among analysts covering ADBE stock is a "Moderate Buy" rating, with a positive sentiment reflected in the recent performance and outlook. This suggests that analysts are optimistic about Adobe's ability to sustain its EPS growth trend into 2025.
5. **Strategic Positioning**: Adobe's focus on innovation, particularly in AI-first solutions, and its diversified go-to-market strategy are expected to support long-term sustainable growth. The company's customer-centric approach and strong cash flow position further bolster its capability to sustain EPS growth.

In conclusion, considering Adobe's historical EPS growth, recent financial performance, strategic initiatives, and analyst optimism, the company is well-positioned to sustain its EPS growth trend into 2025.