Adobe Inc (NASDAQ:ADBE) reported second-quarter revenue of $6.62 billion, topping analyst expectations of $6.45 billion, but investors were rattled by news of another C-suite departure. Adobe disclosed that CFO Dan Durn will depart on June 15.
The company now expects full-year revenue of between $26.5 billion and $26.6 billion, and said its finance chief was stepping down.
Adobe (ADBE) shares are inching lower on Thursday morning ahead of the software firm's much-anticipated Q2 earnings scheduled for release after the closing bell. Consensus is for the company to report $5.81 per share of earnings (EPS) for its recently concluded quarter on a 9.9% year-over-year increase in revenue to $6.45 billion.
Shares of Adobe (NASDAQ:ADBE | ADBE Price Prediction) are down 5% in Thursday midday trading, slipping to roughly $222.60 and pressing against a 52-week low of $220.17.
Adobe is scheduled to report earnings after the closing bell Thursday, with traders anticipating a big move from the Photoshop maker's stock following the results.
Given all the doubts around Adobe, it's perhaps surprising that the company will likely go with an internal candidate to replace outgoing CEO Shantanu Narayen.
AI-driven cannibalization is weakening Adobe Inc.'s legacy products, particularly Adobe Stock, while freemium offerings create near-term ARR headwinds. ADBE's gross margins should stay broadly stable, as easing data center and GPU costs are offset by rising competitive pricing pressure from Figma and Canva. ADBE stock trades at a large 1-year forward P/E discount to software peers, but the implied 6-year earnings growth ask rate exceeds its current normalized profit growth track.
ADBE heads into Q2 earnings with AI-driven growth in Firefly and GenStudio, but faces rising GenAI competition and macroeconomic pressure.
Adobe Inc (NASDAQ:ADBE) is set to report fiscal second-quarter earnings after the close on Thursday, June 11.
Adobe (NASDAQ: ADBE) stock price remains on edge this week as investors wait for the upcoming quarterly results, which will provide more insights on its business amid the ongoing artificial intelligence disruption. ADBE dropped to $248, down slightly from last month's high of $274.
Evaluate the expected performance of Adobe (ADBE) for the quarter ended May 2026, looking beyond the conventional Wall Street top-and-bottom-line estimates and examining some of its key metrics for better insight.
The hot May jobs report may or may not have been caused by an earlier-than-normal Memorial Day holiday, but it has nevertheless put inflation and Fed outlook at the center of market discourse. Rising Treasury yields indicate the direction in which consensus expectations are evolving.