Adobe Earnings Live: Will ADBE Stock Soar After Tonight's Q2 Earnings?

Adobe’s conference call has concluded and no major movements happened with the stock. Overall, it appears this quarter will do little to settle the debate over the company’s stock. Earlier, we shared the major bull case (check our write-up before live updates for a YouTube link).

The company continues growing at double-digit rates, yet fears that growth could quickly slow will remain as AI continues to scale in capability.

We’ll continue to have coverage on Adobe on 24/7 Wall St. in the coming weeks and months.

As of 5:20 p.m. ET, Adobe shares are close to flat, down .34%. If you’re a bull, that’s not what you’d like to see after a beat and raise. However, the stock was down 1.7% an hour ago, so it has regained some losses.

After Adobe’s conference call we’ll post an analysis of any new findings and commentary (if available from Wall Street). Make sure to keep this page open and we should have another significant update at around 5:45 p.m. ET.

As we continue reviewing Adobe’s earnings – here’s a thought on what could be leading to its share price heading south after an initial pop:

• RPO: Adobe’s ‘Remaining Performance Obligations’ (RPO) were flat at $19.69 billion and remain down from $19.96 billion in Q4 of last year. RPO is similar to a ‘backlog’ for cloud companies, so there could be some read-through on subscription weakness moving forward.

In Q2 Adobe repurchased $3.5 billion worth of shares. The company granted a $25 billion reauthorization program in March 2024 and has $10.9 billion remaining. You’d hope the company would have been aggressive last quarter as shares sunk as low as $332 per share.

The steady drop after Adobe’s post-earnings jump continues. Shares are now down 1.7% as of 4:29 p.m. ET.

And it’s a fast reversal for Adobe, which initially popped 5%.

What could be the negative anchor on company shares? Full year revenue guidance was raised to $23.5 billion to $23.6 billion, which is above expectations of $23.46 billion. In addition, full year EPS of $20.60 at the midpoint is above Wall Street estimates of $20.36 billion.

These numbers feel ‘good enough’ to us to lead to gains tomorrow for a ‘battleground stock’ where Wall Street debates whether its moat could be wittled away. Yet, shares continue to drop. We’ll keep digging into reactions from Wall Street and updating this blog.

Here’s some growth rates for key areas of Adobe’s results:

• Revenue: Up 11% year-over-year
• Adjusted EPS: Up 13% year-over-year
• Digital Media ARR: Up 12% year-over-year

Adobe’s share price initially spike but is now up .8%. While investors were initially happy about Q2 results, guidance for Q3 may be weighing on results.

Stay on this page as we’ll continue providing analysis. 

Here’s the numbers that matter…

Second quarter:

• Adjusted EPS: $5.06 vs. $4.97 Wall Street Estimates
• Revenue: $5.87 billion vs. $5.798 billion

As of 4:07 p.m. ET Adobe shares are up 4%. We’ll get the numbers and give you some analysis.

Ahead of Adobe’s earnings there’s a massive outage of cloud services that’s brought down the share prices of several notable companies like Cloudflare (NYSE: NET).

As of 3:35 p.m. ET, Adobe is trading in-line with the market headed into today’s earnings. The company’s stock is up .21% while the broader Nasdaq is trading up .18%.