Adobe Reports Q2 EPS of $5.96, Raises Revenue Forecast, CFO to Exit
ADBE•Adobe delivered adjusted Q2 EPS of $5.96 on revenue of $6.62B, surpassing forecasts of $5.83 and $6.46B, respectively, but shares plunged over 4% to a seven-year low. The company raised its full-year revenue outlook to $26.5B–$26.6B and announced CFO Dan Durn’s departure.
1. Q2 Performance
Adobe delivered adjusted EPS of $5.96 on $6.62 billion in sales for the quarter ended May 29, topping analyst estimates of $5.83 per share and $6.46 billion in revenue. Net income reached $1.71 billion, or $4.25 per share on an unadjusted basis, reflecting strong adoption of its digital media and marketing software.
2. Stock Reaction
Despite the beat, shares fell more than 4% in extended trading to their lowest level since January 2019, extending a year-to-date decline of 37% and a 47% drop over the past 12 months. Investor concern centers on longer-term growth prospects in legacy businesses even as AI offerings expand.
3. Outlook and Leadership Change
The company raised its full-year revenue forecast to $26.5 billion–$26.6 billion, up from $25.9 billion–$26.1 billion, and set third-quarter guidance at $6.67 billion–$6.72 billion in revenue with EPS of $6.05–$6.10. CFO Dan Durn is set to exit later this year, prompting questions about succession as Adobe accelerates AI tool development.
