Adobe Q2 Revenue Seen Up 10% to $6.45B as AI Sales Gain
ADBE•Analysts expect Adobe’s Q2 revenue to rise about 10% to $6.45 billion with adjusted EPS of $5.81, marking its slowest growth pace in three years. The shares fell 10% this month and 33% year-to-date as investors weigh AI-driven design sales, a CEO search and diverging analyst price targets.
1. Q2 Revenue and Earnings Expectations
Adobe is projected to deliver second-quarter revenue of $6.45 billion, up nearly 10% year-over-year, with adjusted earnings per share of $5.81, representing its slowest growth rate in three years.
2. Recent Stock Performance
The stock declined 10% this month, bringing its year-to-date drop to 33%, but rose 0.4% in premarket trading as investors anticipate the earnings release.
3. Analyst Ratings and Price Targets
Among 38 analysts, 20 rate it Hold, 15 Buy or higher and 3 Sell; price targets range from $264 to $400, averaging $329.33, implying about 41% upside from the latest close.
4. AI Initiatives and Leadership Transition
Adobe has integrated its Firefly AI across Photoshop and Illustrator and is scouting a new CEO after Shantanu Narayen’s March departure; investor Michael Burry believes the market underprices its AI asset value.
