As one of the largest software and cloud computing companies in the world, Adobe (NASDAQ:ADBE) reported solid growth in its financials over the past year, driven by pandemic tailwinds. However, as the tech industry slows as a faster-than-anticipated macroeconomic recovery kicks in, will ADBE be able to retain its growth trajectory? Read more to find out.Adobe, Inc.(ADBE) is one of the biggest names in the cloud computing and software industry, with a market capitalization of $244.83 billion. The rising demand for cloud computing and digital media services along with the company’s strategic expansion policies allowed ADBE to report record results in its most recent quarter, ended March 5.
Its revenues grew 26% year-over-year to $3.91 billion in its fiscal first quarter, attributable to a 37% rise in its Document Cloud revenue and a 32% rise in its Digital Media revenue. Its non-GAAP EPS improved 38% from the same period last year to $3.14. And shares of ADBE gained 49.9% over the past year, and 9.9% over the past month.
We think ADBE’s share price appreciation is likely to continue in the coming quarters because the company expects its digital media segment revenue and digital experience segment revenue to rise 21% and 18%, respectively, year-over-year.