Adobe raises full-year guidance after strong Q2 revenue from AI demand

From Financial Modeling Prep: 2025-06-17 06:47:00

Adobe Inc. (NASDAQ: ADBE) raised its fiscal 2025 guidance after strong Q2 revenue fueled by AI-powered Digital Media demand. Shares dipped in premarket trading. The company also increased its Digital Media segment forecast to $17.45-$17.50 billion. Q3 guidance shows Adobe’s AI investments driving recurring revenue growth.

Analysts note Adobe’s progress in AI, with revenues on track to exceed $250 million. However, Vital Knowledge suggests Adobe’s outlook falls short compared to Oracle. Despite premium valuation, Adobe’s strong subscription streams and margins support its position. Monitoring leverage ratios can provide insights into margin trends and operating leverage.

Investors should focus on Adobe’s AI-led growth, premium valuation, and peer comparison with cloud leaders like Oracle. Real-time ratio analysis can help assess if AI investments will sustain earnings and justify Adobe’s valuation.



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