Down 50% Over the Past Year, Is There Anything Adobe Can Do to Rebound?
Written by Geoffrey Seiler for The Motley Fool -> However, investors remain concerned about AI disruption and its move to a freemium model. No matter what Adobe (NASDAQ: ADBE) does, it seemingly isn't good enough for investors. The stock slid yet again after posting another nic
However, investors remain concerned about AI disruption and its move to a freemium model.
No matter what Adobe (NASDAQ: ADBE) does, it seemingly isn't good enough for investors. The stock slid yet again after posting another nice quarter, cutting its shares in half over the past year.
Let's take a closer look at the software-as-a-service (SaaS) company's results and prospects to see what could help get the stock moving in the right direction.
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While there is a pervasive narrative that Adobe will be an artificial intelligence (AI) loser, the company has been a model of consistency that continues to deliver low-double-digit revenue growth quarter in and quarter out. This continued in the second quarter of fiscal year 2026, ended May 29, with revenue rising 13%, or 11% in constant currencies, to $6.62 billion. This was well above its previous forecast for revenue of between $6.43 billion and $6.48 billion.
Annual recurring revenue (ARR) , meanwhile, climbed 12.5% to $27.1 billion, and adjusted earnings per share (EPS) jumped 18% year over year to $5.96, ahead of Adobe's prior $5.80 to $5.85 outlook.
Turning to individual segments, the creative and marketing professionals customer group saw revenue grow by 13% to $4.54 billion. Revenue from the business professionals and consumers group climbed by 16% to $1.85 billion.
Adobe also upped its full-year guidance. It now expects adjusted EPS of $24.35 to $24.45 on revenue of $26.5 billion to $26.6 billion. That's up from an earlier outlook for adjusted EPS of $23.30 to $23.50 on revenue of $25.9 billion to $26.1 billion.
