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Creative software developer Adobe (ADBE) posted its fiscal first quarter results after Wednesday's market close, reporting revenue of $5.71 billion and adjusted earnings per share (EPS) of $5.08; both figures were above Wall Street consensus estimates.
Julie Hyman and Josh Lipton report on Adobe's earnings release and its stock reaction in after-hours stemming from the company's second quarter earnings and revenue guidance.
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We gotta get some earnings now. We got Adobe numbers just coming out here. The shares are down a bit here, even though the numbers last quarter looked pretty good, the outlook perhaps not quite as strong here. So, uh, the company coming out here with first quarter revenue at about 5.71 billion dollars. That looks to be better than analysts had anticipated. Earnings per share also beating 5.08 for 4.97 is what analysts had anticipated. But the second quarter revenue outlook here, 5.77 billion to 5.82 billion, the average analyst assessment was 5.8. That seems to be in the middle, but still, it looks like maybe that's not good enough, uh, vis-a-vis what, what, uh, some were expecting, Joe.
Yeah. I mean, you know, heading into this print, Julie, it was already not great for Adobe. The stock was basically flat in 2025, was down nearly 25% over the past 12 months. I mean, analysts who follow Adobe will be quick to emphasize, that's really AI disruption fears, in their opinion, that's really front and center, and pressuring this name. Uh, Shantanu Narayen, the CEO, talked about how Adobe success for the next decade, he says here, will be driven by customer focus innovation. He talks about new offerings for creators, uh, marketing professionals, business professionals, and consumers. Goes on to say Adobe is well positioned to capitalize on the acceleration of the creative economy driven by AI, says we're reaffirming our 2025 financial targets. So trying to send a note of optimism here, but at least initially, stock's down almost 3% in after hours.
Yeah. One more other thing I would just want to highlight that might be a reason why the stock is seeing some weakness here. It's the remaining performance obligation number for the first quarter. That's a measure of billings here, $19.69 billion versus the $19.8 billion that analysts were anticipating. May potentially another thing that is sending the stock down.