Adobe’s Strong Earnings Fail to Lift Stock From Downtrend

Despite delivering a stellar quarterly performance that surpassed all forecasts, Adobe’s shares showed little positive reaction. The software giant reported record-breaking revenue, exceeded profit expectations, and raised its full-year outlook—a combination that typically fuels a stock rally. Instead, the equity remains entrenched in a downward trajectory, leaving market observers to question the disconnect.

For its third fiscal quarter of 2025, Adobe posted impressive results. Revenue climbed 11% year-over-year to a record $5.99 billion. On an adjusted basis, earnings per share rose to $5.31, comfortably beating analyst projections.

The Digital Media segment proved to be a primary growth driver, generating $4.46 billion in revenue. This division’s Annual Recurring Revenue (ARR) climbed to a substantial $18.59 billion, underscoring persistent, high demand for Adobe’s creative... Read more...