Adobe Inc. stock research
FY2024 Q4
Adobe (ADBE) Gross Margin — Quarter Ended Nov 29, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. The gross margin in the current quarter was lower than the immediate prior quarter but higher than the same quarter a year ago.
Gross margin takeaway
Quarter ended Nov 29, 2024 · FY2024 Q4
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. The gross margin in the current quarter was lower than the immediate prior quarter but higher than the same quarter a year ago.
- The cost of revenue was higher than the prior quarter, narrowing the gross margin expansion relative to the revenue increase. Compared to the year-ago quarter, the current quarter produced a higher gross margin, supported by a larger revenue base with a lower cost of revenue.
- Gross margin weakened sequentially from the prior quarter but improved from the same quarter a year ago. The relationship among the metrics shows that revenue growth outpaced cost of revenue growth compared to the prior quarter, yet the margin still narrowed.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
89.0%
Gross profit
$5.0B
Revenue
$5.6B
Cost of revenue
$616.0M
Quarter-over-quarter change
-0.7 pts
Year-over-year change
+1.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 1, 2024 | $5.2B | $4.6B | $590.0M | 88.6% |
| May 31, 2024 | $5.3B | $4.7B | $598.0M | 88.7% |
| Aug 30, 2024 | $5.4B | $4.9B | $554.0M | 89.8% |
| Nov 29, 2024 | $5.6B | $5.0B | $616.0M | 89.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Aug 30, 2024
-0.7 pts
Year-over-year change
Dec 1, 2023
+1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The cost of revenue was higher than the prior quarter, narrowing the gross margin expansion relative to the revenue increase. Compared to the year-ago quarter, the current quarter produced a higher gross margin, supported by a larger revenue base with a lower cost of revenue.
Gross margin weakened sequentially from the prior quarter but improved from the same quarter a year ago. The relationship among the metrics shows that revenue growth outpaced cost of revenue growth compared to the prior quarter, yet the margin still narrowed.
Monitor the trend in the cost of revenue, as it increased in magnitude from the prior quarter and may continue to affect gross margin stability.