Adobe Delivers Double Beat In Q2, CFO Steps Down, Shares Stumble

Adobe Inc (NASDAQ:ADBE) posted financial results for the second quarter after the closing bell on Thursday. Here’s a rundown of the report.

• Adobe stock is testing lower boundaries. Why is ADBE stock at lows?

Adobe Q2 Earnings Highlights

Adobe reported second-quarter revenue of $6.62 billion, beating analyst estimates of $6.46 billion, according to Benzinga Pro. The software company reported adjusted earnings of $5.96 per share, beating estimates of $5.82 per share.

Total revenue was up 13% year-over-year as total customer group subscription revenue increased 14% year-over-year to $6.39 billion. Adobe reported $27.10 billion in total annualized recurring revenue (ARR) and said AI-first ARR tripled on a year-over-year basis, exceeding $500 million.

Adobe had $22.27 billion of remaining performance obligations at quarter's end. The company exited the period with $4.92 billion in cash and cash equivalents.

“Adobe delivered record revenue of $6.62 billion in Q2 reflecting strong AI-driven demand across our customer groups and we are raising our full-year fiscal 2026 revenue and non-GAAP EPS targets on the strength of that performance,” said Shantanu Narayen, chair and CEO, Adobe.

Adobe expects third-quarter revenue of $6.67 billion to $6.72 billion, versus estimates of $6.51 billion. The company anticipates third-quarter adjusted earnings of $6.05 to $6.10 per share, versus estimates of $5.77 per share.

Adobe raised its full-year revenue guidance from a range of $25.90 billion to $26.10 billion to a new range of $26.50 billion to $26.60 billion, versus estimates of $26.04 billion.

The company also raised its full-year adjusted earnings guidance from a range of $23.30 to $23.50 per share to an updated range of $24.35 to $24.45 per share, versus estimates of $23.52 per share.

Adobe’s management team will further discuss the quarter on an earnings call with investors and analysts at 5 p.m. ET.

Adobe CFO Departure

Adobe announced that CFO and Executive Vice President Dan Durn will depart the company on June 15 to pursue a new opportunity. Steve Day, senior vice president of Corporate Finance and CFO of Adobe’s Customer Experience Orchestration business unit, will serve as interim CFO.

ADBE Shares Slide After Hours

ADBE Price Action: Adobe shares were down 6.20% in after-hours, trading at $205.24 at the time of publication on Thursday, according to Benzinga Pro.

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