Adobe (NASDAQ:ADBE) recently revealed its Q2 results (fiscal year ending in November), exceeding analyst expectations. The firm reported earnings of $5.06 per share on revenues of $5.9 billion, surpassing the consensus estimates of $4.97 per share and $5.8 billion, respectively.
I'm upgrading Adobe to a strong buy around $400, as the worst appears behind us and current levels offer attractive entry. ADBE delivered a double beat in 2Q25, raised full-year guidance, and is rapidly gaining traction with its AI-focused offerings. The company's unique product ecosystem, robust AI innovation, and strong financials position it for a rebound in sentiment and valuation in 2HFY25, in my opinion.
Adobe Inc. (NASDAQ:ADBE ) Q2 2025 Earnings Conference Call June 12, 2025 5:00 PM ET Company Participants Anil S. Chakravarthy - President of Digital Experience Business Daniel J.
It appears the market has grown tired of trying to trade each new edition of the trade war saga.
Adobe raised its full-year results forecast on Thursday, helped by continued demand for its AI-powered software tools that generate images and video content.
Adobe (ADBE) delivered fiscal second-quarter earnings that topped analysts' expectations as sales climbed to a record high, and raised its full-year outlook.
Adobe Inc (NASDAQ:ADBE) raised its full-year revenue and earnings guidance on Thursday after posting record second-quarter results, driven by strong demand for its AI-powered tools across its Creative and Digital Experience platforms. The software giant forecast fiscal third-quarter revenue between $5.875 billion and $5.925 billion, in line with estimates, and projected adjusted EPS between $5.15 and $5.20, above the $5.10 expected by analysts.
Ahead of Adobe's (ADBE) latest earnings report, Tom White takes a look at the chart's setup as shares trade between its 200-day and 50-day moving averages. Adobe hit 52-week lows in April, but shares have climbed nearly 25% higher since.
Adobe's a “prove me” story as investors have anxiety over Generative AI competition. Despite Adobe's strong track-record and high scorecard ranking, its shares have been weak since 2021. AI risk is moderate and management's reorienting its products and pricing to maintain its strong business position.
Adobe's fundamentals have improved, with strong Q1/25 results, robust subscription growth, and consistent margin expansion supporting a cautious 'Buy' rating. Accelerated share buybacks at lower valuation multiples are a smart capital allocation move, enhancing shareholder value while growth opportunities are evaluated. AI presents both opportunities and threats, but Adobe's integration of AI features and high switching costs help maintain its wide economic moat.
Set to report its Q2 results on Thursday, June 12, Adobe (ADBE) stock is down nearly 30% from its 52-week high of $587 a share.
Adobe Inc (NASDAQ:ADBE) remains a ‘Buy'-rated stock according to analysts at Jefferies, who cited the company's strong product relevance, continued innovation, and compelling valuation. Despite recent underperformance, the analysts noted that Adobe's fundamentals and long-term outlook remain intact.