Adobe Inc. (NASDAQ: ADBE) is scheduled to report third-quarter outcomes on September 11 at 4:05 pm ET. Central to the corporate’s progress technique is agentic AI—autonomous brokers embedded throughout workflows to boost productiveness, speed up content material era, and deepen consumer engagement. This displays a broader pivot towards scalable, AI-native experiences.
The design software program maker’s inventory market efficiency has been unimpressive this 12 months – the shares have dropped about 22% because the starting of 2025, underperforming the S&P 500 index. Though the present valuation is interesting, traders might be monitoring how successfully the corporate executes its AI technique.
When the tech agency stories its third-quarter FY25 outcomes on September 11, after the closing bell, analysts might be anticipating earnings of $5.18 per share, on an adjusted foundation, and revenues of $5.91 billion. Within the comparable quarter of fiscal 2024, the corporate earned $4.65 per share on revenues of $5.41 billion. Earlier, the Adobe administration mentioned it targets Q3 adjusted earnings within the vary of $5.15 per share to $5.20 per share and revenues between $5.875 billion and $5.925 billion.
Key Metrics
Within the second quarter, Adobe’s adjusted earnings rose to $5.06 per share from $4.48 per share within the year-ago interval. Internet earnings was $1.69 billion or $3.94 per share, in comparison with $1.57 billion or $3.49 per share in Q2 2024. The expansion was pushed by an 11% enhance in Q2 revenues to $5.87 billion. Earnings and income as soon as once more surpassed analysts’ estimates, persevering with a multi-quarter streak of outperformance.
Adobe’s CEO, Shantanu Narayen, mentioned within the Q2 2025 earnings name, “Adobe pioneered artistic storytelling by means of groundbreaking functions like Photoshop and Illustrator, and digital doc sharing with the introduction of PDF and Acrobat. Our technique is to deliver productiveness and creativity to life for billions of customers throughout quite a lot of surfaces. Acrobat AI Assistant is redefining how folks extract worth from digital paperwork, unlocking new ranges of productiveness by chopping time to insights by means of conversational interfaces.”
Outlook
Taking a cue from the optimistic Q2 end result, the administration raised its full-year income goal to the vary of $23.50 billion to $23.60 billion. Adjusted earnings per share steering for FY25 has been elevated to the vary of $20.50 to $20.70. Whereas the corporate’s AI program is gaining traction, there are considerations that the initiatives have but to yield the specified outcomes when it comes to income era.
Adobe’s inventory has seen a modest rebound from August lows, however investor sentiment stays cautious, and momentum has but to totally get well. On Wednesday, the shares traded barely increased within the early hours of the session.
