Creative software maker Adobe (NASDAQ:ADBE) beat Wall Street’s revenue expectations in Q2 CY2025, with sales up 10.6% year on year to $5.87 billion. Guidance for next quarter’s revenue was better than expected at $5.9 billion at the midpoint, 0.7% above analysts’ estimates. Its non-GAAP profit of $5.06 per share was 1.7% above analysts’ consensus estimates.
U.S. stocks retreated Friday as geopolitical tensions erupted following Israel's surprise airstrike on Iranian nuclear sites, sparking a sharp rally in oil and gold.
Adobe Inc (ADBE) stock fell, erasing gains from positive Q2 report. Revenue beat estimates, raised FY guidance, and analysts remained positive on AI growth prospects.
Shares of creative software maker Adobe (NASDAQ:ADBE)
fell 5% in the afternoon session after the company reported underwhelming second quarter 2025 (fiscal Q2) results, which failed to impress Wall Street. Recent price hikes to better monetize its AI offerings failed to improve the growth momentum, which remained range-bound in the low double-digit range. Notably, remaining performance obligations (RPO - key growth indicator) also fell below Wall Street's estimates.
Investors are growing cautious about the timeline and payoff of Adobe’s AI initiatives, despite the company beating Q2 estimates and raising its full-year revenue forecast.
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