From Nasdaq: 2025-06-16 01:33:00

Adobe (NASDAQ:ADBE) exceeded analyst expectations in Q2 with earnings of $5.06 per share on sales of $5.9 billion. Despite this, the stock saw a 1% decline in extended trading, prompting a closer look at its financial performance. Adobe’s revenue rose 11% YoY in Q2, driven by growth in its Digital Media and Digital Experience segments.

The company’s adjusted operating margin was 45.5% in Q2, slightly lower than the previous year. Adobe also repurchased 8.6 million shares during the quarter, resulting in a bottom line of $5.06 per share. Looking ahead, Adobe raised its full-year revenue outlook to $23.5-$23.6 billion and adjusted earnings per share to $20.50-$20.70.

ADBE stock has underperformed the S&P 500 this year, with volatile returns in recent years. The Trefis High Quality (HQ) Portfolio, however, has consistently outperformed the S&P 500. While Adobe’s stock seems undervalued at $410 per share, investors should consider potential risks, such as slower AI-driven growth and historical underperformance during market downturns.



Read more at Nasdaq: How Did Adobe Fare In Q2?