Adobe Q2 Beats with $6.62B Revenue and Tripled AI ARR, Shares Drop 5%
ADBE•Adobe posted Q2 adjusted EPS of $5.96 on $6.62B revenue, above forecasts, as ARR hit $27.10B and AI-linked ARR tripled year-over-year. Shares fell about 5% premarket after Adobe left ARR guidance unchanged and said CFO Dan Durn will depart June 15.
1. Q2 Earnings and Revenue Beat
Adobe reported adjusted EPS of $5.96 on $6.62 billion revenue, beating analyst forecasts of $5.82 and $6.46 billion and driving 12% year-over-year revenue growth excluding Semrush.
2. ARR Growth and AI Momentum
Total annual recurring revenue rose to $27.10 billion from $26.06 billion last quarter while ARR linked to AI products tripled year-over-year, highlighting demand for its Firefly generative AI platform.
3. Leadership Changes and Market Reaction
Shares declined about 5% premarket after Adobe kept full-year ARR guidance unchanged and announced CFO Dan Durn will depart June 15, marking a second major executive transition following the CEO succession earlier this year.
4. Third-Quarter Outlook
Adobe issued third-quarter revenue and earnings guidance that exceed analyst estimates, reinforcing its growth outlook despite investor concerns over recurring revenue projections.
