From Nasdaq: 2025-06-19 12:05:00

Adobe shares have dropped 8.6% since reporting Q2 fiscal 2025 results, facing tough competition in AI from Microsoft and Alphabet. However, the company is expanding its AI portfolio, with Digital Media ARR up 12% year over year to $18.09 billion.

Q2 results beat estimates, with non-GAAP earnings at $5.06 per share and revenues at $5.87 billion. Digital Media revenues were $4.35 billion, up 11% year over year, and Digital Experience revenues were $1.46 billion, up 10% year over year.

For fiscal 2025, Adobe expects revenues between $23.5 billion and $23.6 billion, with non-GAAP earnings between $20.50 and $20.70 per share. The company’s focus on AI tools and innovative solutions is attracting users and driving growth.

Despite a premium valuation, Adobe’s positive outlook and competitive position make it an attractive investment opportunity. The stock currently has a Zacks Rank #2 (Buy) and a Growth Score of A, showing strong potential for growth and performance.



Read more at Nasdaq: Adobe Drops 9% Post Q2 Results: Should You Buy the Stock on the Dip?