What drove ADBE's EPS surprises in Q3 and Q4 2024?

Adobe's EPS surprises in Q3 and Q4 2024 can be attributed to several key factors:

1. Innovation and Market Demand: Adobe's continued innovation in its Digital Media, Creative, and Experience Cloud products has driven record revenue and significant growth across its key business segments. The company's strong AI integrations, such as the Firefly models, have also contributed to customer adoption and revenue growth.
2. Subscription Model and Cash Flows: Adobe's subscription model has provided steady and predictable revenue streams, contributing to its strong financial stability. The company's robust cash flows from operations, such as $2.02 billion in Q3 FY2024, indicate effective revenue generation.
3. Regional and Segmental Growth: Adobe has seen growth in various regions and segments. While the US market showed some deceleration, Adobe experienced strong performance in other regions and segments. For example, the Digital Media segment generated $4.00 billion in revenue, reflecting an 11% year-over-year growth. Within this segment, Document Cloud revenue grew by 18% to $807 million, and Creative revenue increased by 10% to $3.19 billion.
4. Strategic Initiatives and Corporate Developments: Adobe's repurchase of shares and commitment to returning value to shareholders, along with its advancements in AI, have been positive for its financial performance.

In summary, Adobe's EPS surprises in Q3 and Q4 2024 can be attributed to its innovation, market demand, subscription model, regional and segmental growth, strategic initiatives, and corporate developments.