Adobe (NASDAQ:ADBE) Releases Q2 2025 Earnings Guidance

Adobe (NASDAQ:ADBE) updated its second quarter 2025 earnings guidance on Wednesday. The company provided earnings per share guidance of 4.950-5.000 for the period, compared to the consensus earnings per share estimate of 5.000. The company issued revenue guidance of $5.8 billion-$5.8 billion, compared to the consensus revenue estimate of $5.8 billion. Adobe also updated its FY 2025 guidance to 20.200-20.500 EPS.

Adobe Stock Down 13.9 %

ADBE stock opened at $377.84 on Friday. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.07 and a quick ratio of 1.07. The firm has a market cap of $164.51 billion, a PE ratio of 30.47, a P/E/G ratio of 2.15 and a beta of 1.37. Adobe has a 12 month low of $374.50 and a 12 month high of $587.75. The firm has a 50 day simple moving average of $437.74 and a 200 day simple moving average of $483.80.

Adobe (NASDAQ:ADBE) last issued its earnings results on Wednesday, March 12th. The software company reported $5.08 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $4.97 by $0.11. The business had revenue of $5.71 billion for the quarter, compared to analysts’ expectations of $5.66 billion. Adobe had a return on equity of 45.87% and a net margin of 25.85%. During the same period in the previous year, the firm posted $4.48 EPS. Equities research analysts forecast that Adobe will post 16.65 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several research analysts have commented on ADBE shares. Jefferies Financial Group decreased their target price on shares of Adobe from $700.00 to $650.00 and set a “buy” rating for the company in a report on Thursday, December 12th. Morgan Stanley decreased their price objective on shares of Adobe from $660.00 to $600.00 and set an “overweight” rating for the company in a research note on Thursday. UBS Group cut their target price on shares of Adobe from $475.00 to $460.00 and set a “neutral” rating on the stock in a research note on Thursday. Evercore ISI decreased their target price on Adobe from $650.00 to $550.00 and set an “outperform” rating for the company in a research report on Thursday. Finally, Stifel Nicolaus dropped their price target on Adobe from $600.00 to $525.00 and set a “buy” rating on the stock in a research report on Thursday. One investment analyst has rated the stock with a sell rating, eleven have issued a hold rating, seventeen have given a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $539.46.

Insider Activity

In related news, CAO Jillian Forusz sold 334 shares of Adobe stock in a transaction dated Tuesday, January 28th. The shares were sold at an average price of $435.83, for a total transaction of $145,567.22. Following the completion of the transaction, the chief accounting officer now directly owns 2,685 shares of the company’s stock, valued at $1,170,203.55. This trade represents a 11.06 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Scott Belsky sold 3,819 shares of the company’s stock in a transaction dated Monday, January 27th. The stock was sold at an average price of $430.24, for a total transaction of $1,643,086.56. Following the sale, the executive vice president now directly owns 18,334 shares in the company, valued at $7,888,020.16. This represents a 17.24 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 5,075 shares of company stock worth $2,191,826. Company insiders own 0.15% of the company’s stock.

Institutional Inflows and Outflows

A hedge fund recently raised its stake in Adobe stock. Brighton Jones LLC grew its holdings in Adobe Inc. (NASDAQ:ADBE) by 2.1% in the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor owned 8,068 shares of the software company’s stock after buying an additional 167 shares during the quarter. Brighton Jones LLC’s holdings in Adobe were worth $3,588,000 at the end of the most recent reporting period. Institutional investors and hedge funds own 81.79% of the company’s stock.

Adobe Company Profile

Adobe Inc, together with its subsidiaries, operates as a diversified software company worldwide. It operates through three segments: Digital Media, Digital Experience, and Publishing and Advertising. The Digital Media segment offers products, services, and solutions that enable individuals, teams, and enterprises to create, publish, and promote content; and Document Cloud, a unified cloud-based document services platform.