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Adobe Q2 Earnings Preview: Expert Says Guidance, AI Progress Important After Being 'Nothing But A Heartache For Investors'
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Adobe Q2 Earnings Preview: Expert Says Guidance, AI Progress Important After Being 'Nothing But A Heartache For Investors'
Jun 11, 2025 12:20 PM

Software company Adobe Inc ( ADBE ) could highlight its new content creator tools and how AI will power future growth when it releases its second-quarter financial results Thursday after market close.

Here are analyst estimates, what experts are saying and key items to watch.

Earnings Estimates: Analysts estimate Adobe will report second-quarter revenue of $5.79 billion, up from $5.31 billion in the second quarter of last year, according to data from Benzinga Pro.

The company beat analyst estimates in the last fiscal quarter and has beaten estimates in eight of the last 10 quarters overall.

Analysts estimate Adobe will report second-quarter earnings per share of $4.96, up from $4.48 in last year's second quarter. The company has beaten analyst estimates in nine of the last ten quarters, including the first quarter.

The company’s guidance calls for second-quarter revenue to be in the range of $5.77 billion to $5.82 billion and earnings per share to be in the range of $4.95 to $5.00.

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What Experts Are Saying: Freedom Capital Markets Chief Global Strategist Jay Woods said Adobe has traded lower after six of its last seven quarterly financial reports.

"Adobe earnings have been nothing but a heartache for investors over the last several years," Woods wrote in a weekly newsletter.

He noted that Adobe comes into Thursday's report with shares down 6.4% for the year and just now trading where they were after the drop from the first quarterly report.

"Overall shares remain -35% from all-time highs set back in January 2024."

Woods said investors will likely be looking for progress from Adobe for its AI monetization.

"Is annual recurring revenue from its Firefly and Acrobat products showing a strong growth projection? Then of course the all important guidance."

According to Woods, Adobe shareholders were punished after the first-quarter financial results when the company issued conservative guidance.

"Will forward-looking guidance meet investor expectations?"  

Wedbush analyst Dan Ives highlighted Adobe as a potential beneficiary of NVIDIA Corporation ( NVDA ) , saying that "for every $1 spent on Nvidia ( NVDA ), there is an $8-$10 multiplier across the rest of the tech ecosystem."

The analyst said 2025 could mark the true inflection point in enterprise AI adoption, and many companies, including Adobe, could benefit from Nvidia ( NVDA ).

Here are some recent analyst ratings on Adobe and their price targets:

Citigroup: Maintained Neutral rating, raised price target from $430 to $465

UBS: Maintained Neutral rating, raised price target from $380 to $430

RBC Capital: Reiterated Outperform rating, maintained price target of $480

Key Items to Watch: As the experts above predicted, AI will likely be the key topic for investors and analysts when Adobe reports.

First-quarter revenue was up 10% year over year and beat estimates, helping to offset the fourth-quarter results that saw both revenue and EPS miss Street targets.

Adobe CEO Shantanu Narayen said the company is well-positioned to capitalize on the growth of AI helping the creative economy.

"Adobe's success over the next decade will be driven by customer-focused innovation and new offerings for creators, marketing professionals, business professionals and consumers," Narayen said.

Analysts and investors will be closely watching guidance after the company maintained its full-year 2025 estimates despite beating estimates for the quarter.

ADBE Price Action: Adobe stock was down 0.5% to $414.18 on Wednesday, compared to a 52-week trading range of $2332.01 to $587.75. It is down over 6% year-to-date in 2025 and over 10% in the last year.

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