Adobe Inc (NASDAQ:ADBE) delivered better-than-expected results for FY25 Q2, but the beats were minimal—just over 1% for both revenue and EPS. Management also raised full-year guidance, yet again only modestly, with both revenue and EPS bumped by roughly 1% (if that), failing to generate real excitement.
Despite upbeat commentary and presentation material emphasizing 30–40% year-over-year or quarter-over-quarter growth across certain products and AI-driven demand, actual segment growth remained in the 10–11% range. That’s solid, but it falls short of the narrative being sold. Given the AI hype, product launches, and peers showing more material acceleration, the numbers feel misaligned with the story.
This disconnect raises questions about management credibility. Adobe has a history of sandbagging estimates only to beat them later, and while this quarter did come with a modest upward revision, it lacked substance.
For more details, key highlights, and commentary, check out the high-level earnings summary.
