Why Adobe Stock Just Couldn’t Light a Fire Under Investors Today

Adobe's latest earnings report dropped—and investors barely flinched. The creative software giant posted numbers that should've sparked rallies, but the market responded with a collective shrug.

Revenue hits expected targets, user growth ticks upward, yet the stock languishes. No major sell-off, no buying frenzy—just sideways motion that defies conventional wisdom.

Cloud subscriptions keep rolling in, creative professionals aren't jumping ship, but Wall Street's treating Adobe like yesterday's news. Maybe everyone's too busy chasing AI crypto pumps to care about actual profitable tech companies.

Sometimes even solid fundamentals can't compete with market apathy—especially when traders would rather gamble on memecoins than bet on established cash flows.

AI-enhanced growth insufficient?

For the period, Adobe posted record revenue of just under $6 billion. Although the company notched an all-time high, that figure was only 1% above that of the same quarter of 2024. Non-GAAP (adjusted) net income ROSE at a more precipitous 8%, landing at a bit under $2.3 billion ($5.31 per share).

Image source: Getty Images.

Both figures came in above the consensus analyst estimates, although neither was a crushing beat. The average pundit projection for revenue was $5.91 billion, and that for adjusted profitability was $5.18 per share.

In its earnings release, Adobe implied that its dive into artificial intelligence (AI) was helping the company grow, pointing out in numerous instances that the technology is being used across a broad range of its products. Given the numerous mentions, it's likely that certain investors expected more robust growth given the promise and potential of AI.

Broadly in-line guidance

Adobe also proffered updated guidance for both its current quarter (the fourth) and the entirety of 2025. For the former period, it's expecting to earn between just under $6.08 billion and nearly $6.13 billion in revenue, netting an adjusted net income of $5.35-$5.40 per share. The consensus analyst estimate for the two metrics is $6.09 billion and $5.34 per share, respectively.