Stock futures are pointing to a higher open for major indexes as the market looks to close out a volatile week of trading on a high note; shares of SpaceX are set to start trading in what is the biggest IPO ever; Adobe shares are falling amid worries about the company's AI growth strategy; Nvidia has reportedly told customers in China that its Vera CPU will be available to them as soon as August; and Flutter Entertainment is delisting from the London Stock Exchange as the owner of the FanDuel sports betting site focuses on the U.S. Here's what you need to know today.
Adobe (NASDAQ:ADBE | ADBE Price Prediction) shares are getting hammered on Friday, down 9% to $198 after the design-software giant reported a beat-and-raise quarter that investors decided to sell anyway.
Adobe Inc. delivered strong Q2 results, exceeding revenue and non-GAAP EPS expectations, and raised full-year guidance. I assign ADBE a hold rating due to uncertainty around AI monetization, freemium conversion rates, and leadership transitions despite attractive valuation. Organic ARR growth concerns persist as Semrush acquisition boosts guidance but masks underlying growth deceleration.
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Adobe's Q2 earnings call spotlights an AI-era freemium push, prioritizing user growth and engagement even as ARR timing shifts.
Adobe Inc. (ADBE) Q2 2026 Earnings Call Transcript
Adobe delivered a record Q2 FY26 with $6.62B in revenue (+13% YoY), beating guidance and consensus EPS by $0.15. AI-driven growth is accelerating, with AI-first ARR surpassing $500M — tripling YoY and doubling QoQ — contradicting fears of AI disruption. Management raised FY26 revenue guidance to $26.55B and maintains operating margin targets above 45%, signaling confidence despite leadership transitions.
Adobe NASDAQ: ADBE reported record fiscal second-quarter revenue and raised its full-year revenue outlook, while executives outlined a strategic shift toward more aggressive freemium user acquisition across Acrobat, Express and Firefly that is expected to weigh on second-half annual recurring revenue growth.
While the top- and bottom-line numbers for Adobe (ADBE) give a sense of how the business performed in the quarter ended May 2026, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Adobe Inc. delivered a strong Q2, beating consensus on both revenue and EPS for the 14th consecutive quarter. ADBE's revenue growth accelerated to 13% YoY, driven by robust subscription sales and rising AI-first revenues. Management raised full-year revenue guidance by 2%, reflecting confidence in ongoing momentum and underpromising execution.
Adobe Systems (ADBE) came out with quarterly earnings of $5.96 per share, beating the Zacks Consensus Estimate of $5.83 per share. This compares to earnings of $5.06 per share a year ago.
Adobe's stock falls further, after closing Thursday at the lowest price in more than seven years.