From CNBC: 2025-03-13 11:51:45

Adobe’s CEO, Shantanu Narayen, spoke at the B20 Summit in New Delhi before the company’s shares dropped 13% post-earnings report. Despite beating expectations with $5.08 earnings per share and $5.71 billion in revenue, investors were concerned about AI monetization. Adobe projects $4.95-$5.00 earnings per share and $5.77-$5.82 billion revenue for the current quarter.

Annualized recurring revenue from AI at Adobe contributed $125 million and is expected to double by year-end. Analysts like Mark Moerdler from Bernstein recommend buying stock as AI trends continue. Morgan Stanley’s Keith Weiss wants clearer AI roadmap. Adobe CEO Narayen highlights AI innovation creating new revenue streams.

Adobe’s total revenue rose 10% year-over-year with net income at $1.81 billion in the quarter ending Feb. 28. Adjusted earnings per share, excluding stock-based compensation and income taxes, increased. For fiscal year 2025, Adobe projects adjusted earnings per share of $20.20-$20.50 and $23.3-$23.55 billion in revenue, suggesting 9% growth. The LSEG consensus was slightly lower at $20.40 earnings per share and $23.49 billion revenue.



Read more at CNBC:: Adobe (ADBE) Q1 earnings report 2025