Skip to content
Trending
July 18, 2025Abbott stock fell victim to an old earnings season truth: It’s all about the guidance July 16, 2025BlackRock falls more than 5% on mixed earnings โ€” why we’d look to buy Wednesday July 15, 2025Inflation report Tuesday should provide clues on the impact tariffs are having on prices July 14, 2025FDA to consider drug affordability when granting new vouchers to speed up approvals, Makary says July 15, 2025Starbucks employees to return to the office four days a week โ€” or take a payout July 15, 2025Powell asks inspector general to review $2.5 billion renovation after Trump blasts Fed project July 16, 2025Inflation picks up again in June, rising at 2.7% annual rate July 16, 2025Jamie Dimon says JPMorgan Chase will get involved in stablecoins as fintech threat looms July 15, 2025We’re raising our CrowdStrike price target after shortsighted post-earnings selling July 18, 2025Kevin Warsh touts ‘regime change’ at Fed and calls for partnership with Treasury
EverydayRead
  • HOME
  • Business
  • Earnings
  • Economy
  • Finance
  • Lifestyle
EverydayRead
EverydayRead
  • HOME
  • Business
  • Earnings
  • Economy
  • Finance
  • Lifestyle
EverydayRead
  Earnings  Adobe shares drop 14% as concerns about AI growth overshadow better-than-expected results
Earnings

Adobe shares drop 14% as concerns about AI growth overshadow better-than-expected results

AdminAdmin—March 14, 20250

Shantanu Narayen, Chair and CEO of Adobe Systems, addresses the gathering on the first day of the three-day B20 Summit in New Delhi on Aug. 25, 2023.

Sajjad Hussain | AFP | Getty Images

Adobe shares closed down 14% following the company’s quarterly earnings report as investors fretted over lingering growth concerns and the software maker’s artificial intelligence monetization strategy.

More stories

Twilio shares pop 20% for biggest gain since Covid pandemic on growth forecast

January 27, 2025

Alaska Airlines warns of slower demand as second-quarter profit outlook falls short

April 24, 2025

No need to sell this AI data center play ahead of earnings โ€” and updates on 3 more industrial stocks

October 3, 2024

Adobe shares drop 14% as concerns about AI growth overshadow better-than-expected results

March 14, 2025

The sell-off came despite better-than-expected results, which included adjusted earnings of $5.08 per share and $5.71 billion in revenue. That surpassed analysts’ estimates of $4.97 in earnings per share and $5.66 billion in revenue, according to LSEG.

Adobe called for $4.95 to $5.00 in adjusted earnings per share for the current quarter on $5.77 billion to $5.82 billion in revenue. Analysts polled by LSEG had expected $5.00 per share on $5.80 billion in revenue.

Worries have mounted in recent months that the company is falling behind some competitors and losing its advantage in generative AI. The company’s annualized recurring revenue from AI contributed $125 million during the period and Adobe expects that to double by the end of the fiscal year.

Bernstein’s Mark Moerdler, who recommends buying on the stock, wrote in a report that to “believe that ADBE is an AI winner and that AI is not replacing existing revenue streams, investors need to be able to observe longer-term trends.”

Keith Weiss, an analyst at Morgan Stanley, wrote that “new disclosure of GenAI contribution is a step in the right direction,” but that investors need to see a “clearer roadmap” at the company’s investor meeting at its annual conference next week. Morgan Stanley has the equivalent of a buy rating on the stock.

In an interview with CNBC’s “Closing Bell: Overtime” on Wednesday, Adobe CEO Shantanu Narayen said that, “Not only are we infusing AI in our existing products and delivering value, but it’s clear that the innovation that we’ve delivered is creating new revenue streams.”

Total revenue increased 10% year over year in the quarter that ended on Feb. 28, according to a statement. Net income of $1.81 billion, or $4.14 per share, was up from $620 million, or $1.36 per share, in the same quarter a year earlier. Adjusted earnings per share exclude impact from stock-based compensation and income taxes.

For the 2025 fiscal year, the company expects adjusted earnings per share of between $20.20 and $20.50, with $23.3 billion to $23.55 billion in revenue. That implies about 9% growth at the middle of the range. The LSEG consensus was for earnings of $20.40 per share, with $23.49 billion in revenue.

Donโ€™t miss these insights from CNBC PRO

Making the Case For & Against Adobe
Ulta issues weak guidance, citing consumer uncertainty, rising competition and company missteps
Why this week’s positive inflation reports won’t look as good to the Fed
Related posts
  • Related posts
  • More from author
Earnings

Abbott stock fell victim to an old earnings season truth: It’s all about the guidance

July 18, 20250
Earnings

BlackRock falls more than 5% on mixed earnings โ€” why we’d look to buy Wednesday

July 16, 20250
Earnings

We’re raising our CrowdStrike price target after shortsighted post-earnings selling

July 15, 20250
Load more
Read also
Finance

Crypto theft is booming as criminals increasingly turn to physical attacks

July 18, 20250
Economy

Kevin Warsh touts ‘regime change’ at Fed and calls for partnership with Treasury

July 18, 20250
Earnings

Abbott stock fell victim to an old earnings season truth: It’s all about the guidance

July 18, 20250
Business

Netflix posts earnings beat as revenue grows 16% in second quarter

July 18, 20250
Finance

Jamie Dimon says JPMorgan Chase will get involved in stablecoins as fintech threat looms

July 16, 20250
Economy

Inflation picks up again in June, rising at 2.7% annual rate

July 16, 20250
Load more
ยฉ 2023, All Rights Reserved.
  • About Us
  • Advertise With Us
  • Contact Us
  • Disclaimer
  • Cookie Law
  • Privacy Policy
  • Terms & Conditions